16.4.1 Interest Rate Fixing Advice to Borrower for New Drawdown

If the product specified for the tranche or drawdown loan has a Rate Fixing rate of interest, the same is applicable on the drawdown loan. However, you can change this rate at the contract level. If a Floating rate has been defined for the product, the rate attached to the specified Rate Code, in the Floating Rates table, is applicable. You can change the rate code by using the Value Dated Changes function.

Note:

This advice is generated as part of the IRFX event.

After the appropriate interest rate has been fixed for the new drawdown loan initiated at your bank, you can send an Interest Rate Fixing advice to the borrowing customer.

The Interest rate fixing advice includes the following details.

• The reference number of the tranche to which the new drawdown loan is linked.
• The date on which the drawdown is booked in the system.
• The period for interest calculation.
• The maturity date of the drawdown.

Note:

Maturity date is the rate fixing end date.

• The amount of the drawdown loan.
• If you have applied a floating interest rate on the drawdown, the Spread (LIBOR basis) that is applied over the floating interest rate.
• The margin applied on the interest rate.
• The interest/lending rate applied on the drawdown.