| Fixed Rate Type |
For a Fixed rate
type, this indicates whether the rate is user specified or
is picked up from the rate maintenance table. The options
are:
- User Input (U) – This option indicates
that the user specifies the rate of interest
applicable on the contract.
- Standard (S) – This option indicates
that the system picks-up the rate from the Standard
Rate Maintenance screen. This rate is a combination
of the Standard Rate and Tenorwise Spread.
This specification is defaulted from the loan product
involved in the contract and you cannot change it at the
contract level.
|
| Special Rate Type |
System defaults the maintenance done for
Special Rate Type in the
Interest Limits Maintenance
screen. However, you can edit this value and select the
special rate type from the adjoining drop-down list. This
list displays the following values.
|
| Fixed Rate Code |
If the Fixed Rate Type is
Standard, this indicates the Standard
Rate Code based on which the system pick ups the rate
applicable on the contract.
This specification is
defaulted from the product. However, you are allowed to
change it at the time of contract
processing.
|
| Penalty Rate Code |
If pre-payment penalty is allowed for the loan product,
select the rate code based on which the system pick-ups the
prepayment penalty rate for the contract.
This
specification is also be defaulted from the product.
However, you are allowed to select a different rate code
at the contract level.
|
| Revision Method |
Select the revision method option for the periodic
floating type of loans from the list of option provided:
|
| Alternative Risk-Free
Rates |
For information on Alternative Risk-Free
Rates, refer to Interest Class
Maintenance in this User Manual.
|
| Interest Rate Rounding
Components |
The Rate Rounding Rule,
Rate Rounding Unit, and
Rate Rounding Position values get
defaulted from Interest Limits Detail
screen. If required, you can change these values.
|
| Consider as
Discount |
While defining an interest class for either the loans or
the bills module, you can indicate whether the interest
component is to be considered for discount accrual on a
constant yield basis.
The value for this field is
defaulted from the Interest Definition and it can be
changed here. If Accrual
Required option is not selected then
Consider as Discount option is
disabled for Bearing Contracts.
If you select this option
the interest received against the component is used in
the computation of the constant yield and subsequently
amortized over the tenor of the associated
contract.
Note: You are allowed to enable the
Consider as Discount option for loans only when the
payment method specified is Discounted or True
Discounted and for the Discount operation for Export
bills.
For bearing type of contracts, all future
interest cash flows are considered for computation of
constant yield. For discount type of contracts, only the
interest amount received for the components with the
Consider as Discount option
enabled are considered for the computation of constant
yield; subsequently the interest amount received in advance
for these components is amortized over the tenor of the
associated contract.
|
| Interest Component
accrual |
While defining an interest class for either the loans or
the bills module, you can indicate whether the interest
component is required to be accrued.
The value for this
field is also defaulted from the Interest
Class Maintenance screen. However, you
can change it here.
Note: If both Consider
as Discount and Accrual
Required fields have not been enabled
for the product, you cannot enable these for
contracts.
If the Special Penalty
Component check box is selected for a
component, then system deselects the Accrual
Required box for such components and disable
it.
|
| Special Penalty Comp |
System automatically selects this box for late payment
charge components (based on the maintenance done in
Interest Class Maintenance
screen) and you cannot modify it.
|
| Interest period
basis |
You can indicate how the system must consider the tenor
basis upon which interest is computed over a schedule or
interest period, in respect of interest components
applicable for the contract. This preference is inherited
from the Interest Limits definition for the product used by
the contract, and you can change the default option
chosen.
You can choose any of the following options:
- Including the From Date
- Including the To Date
- Including both From and To Dates
- Excluding both From and To Dates
For details about the four options, refer the topic
Specifying the Interest Basis under the head
Building Interest Classes, in this User
Manual.
|
| Waiving an Interest Rule |
You have the option of waiving those rules (defined for
the product), which you do not wish to apply on a
contract.
Example For a
product, there can be one interest rule for the main
interest (for example, 14%). You can have a tenor-based
commission defined as an interest rule for the same product
(for example, 3%). Both these apply to contracts involving
the product. However, you can waive these rules for a
specific contract. For instance, you can waive the 3%
commission on the contract (by checking the Waive
field.)
|
| Interest Amount |
System defaults the value maintained for
Default Amount in the
Interest Class Maintenance screen
for a late payment component which has Rate
Type as SPECIAL and
Special Rate Type as
Flat Amount. However, you can
edit this value during contract input.
|
| Penal Compounding on Rate
Revision |
The Penal Compounding on Rate
Revision check box is available in the
Contract ICCF sub-screen. It is
read only and displays the value selected at product
level.
The calculation for the basis amount based on
the following:
- The date from which penalty is due (Min Due
Date) and penalty amount paid.
- Accruing the penalty interest due from Min Due
Date to the current schedule date.
- Modifying the basis amount for the current
schedule as
- Basis Amount = Basis Amount + Penalty Due –
Penalty Paid
|
