5.2.4.4 Specifying Repayment Schedule Details
- FIFO (First In First Out)
- Pro-rata
- LIFO (Last In First Out)
- If this option is selected, the rule specified at the tranche level is applied for defining the repayment schedules for the drawdowns processed under the tranche. In this case the Principal Schedule Definition is marked as AUTO (in the Schedule Details section of the Schedule tfab) and you cannot change it. However, you can amend the schedules, if required. If amendments are made, auto scheduling does not happen for further drawdowns.
- If the option is not checked, the schedules defined for the DD product is applied for drawdowns under the tranche. For such drawdowns, the Principal Schedule Definition is marked as MANUAL (in the Schedule Details section of the Schedule tab) and you cannot change it. In this case also, you can amend the schedules, if required. However, if you make amendments, auto scheduling does not happen for further drawdowns.
Note:
- Payment Type - Bearing
- Schedule Type – Normal
Table 5-4 Repayment Schedule Details
Fields | Description |
---|---|
Type | In the Schedule Details section of the
screen, you can define the following types of schedules:
|
Component | In this field, you have to specify the component for which the
schedule is being defined. All components - the principal and other
components, depending upon your association with the drawdown
product will be available in the form of an option list. You have to
define schedules for each of them.
When defining repayment schedules for specific loans, the amount of repayment needs to be specified only for the principal. The interest, commission and fee amounts are calculated by the system, automatically, depending on the repayment date and amount of the principal. Note: For amortized schedules, you cannot define schedules for the principal. The component is displayed as AMORTISE. You should specify the frequency of amortization. |
Start Date | This is the date on which the first repayment or rate revision
becomes due for the schedule being defined. Subsequent dates will be
calculated based on this date and the frequency you specify in the
next field. Any repayment or rate revision schedule date falling on
a holiday is handled as per the holiday treatment specifications you
define.
This date should be the same or later than the Value Date and same or earlier than the Maturity Date of the drawdown. |
No. | Based on the frequency and the unit of frequency, you have to
specify the number of schedules for the component. For instance, if
you want the schedules to fall due once a month for 12 months, then
you need to specify the following details:
|
Frequency | This indicates the frequency/interval at which the schedules fall
due. The available frequencies are:
Note: You can specify only bullet schedule for PIK interest component. PIK margin maintained at the Margin Maintenance screen is automatically picked up for the PIK margin component. |
Unit | Unit of frequency identifies the number of occurrences within a frequency, for example, . Unit 2 and Frequency Monthly means bimonthly frequency that is, the schedule occurs once in 2 months. Similarly, if you want a payment every 15 days you have to specify the frequency as Daily and enter the units as 15. |
Amount | When defining repayment schedules, the amount of repayment needs
to be specified only for the principal. This is the amount by which
the available amount under the drawdown is reduced as per the
frequency.
The system calculates the interest and fee amounts automatically, depending on the repayment date and amount of the principal. However, for drawdowns with special interest, you also have to provide the interest amount. Similarly, if a fee or a charge has been defined as an amount, you also have to specify the amount. Note:
|
Month End Indicator | If Month End Indicator is selected as
Yes then ensure to enter the
Start Date as month end. In this case you
need to consider Holiday Treatment For
Schedules.
|
Parent topic: Capturing Details in the Schedule tab