4.9.17.4 Default Interest Schedules
Here you can specify the default interest schedules for each interest component of a
drawdown product. The schedule maintained here gets defaulted to any new drawdown under
the respective product.
Table 4-17 Default Interest Schedules
Fields | Description |
---|---|
Reference | Select the reference on which you want to schedule the interest from the drop-down list provided. |
Frequency | Select frequency on which you want to schedule the interest from the drop-down list provided. |
Frequency unit | Select the unit of frequency on which you wish to schedule the interest from the drop-down list provided. |
Month | Select the month on which you want to schedule the interest from the drop-down list provided. |
Date | Select the date on which you want to schedule the interest from
the drop-down list provided.
Note: This Interest is only for the Interest Component of a Normal contract. It is not applicable for Principal Component. Also this schedule is not be applicable for PIK Margin component. |
Alternative Risk-Free Rates Preferences | The options of Alternative Risk-Free Rates
Preferences are defaulted from Interest
Class Maintenance screen (LFDINTCL).
While booking the contract you can modify the Alternative Risk-Free Rates Preferences options. You cannot modify the preferences during contract amendment and value dated amendment. In case loan is booked with Alternative Risk-Free Rates Preferences and during contract amendment if you try to change the preferences to LIBOR Fixed/Floating, then the following error appears Modification of parameters from RFR to Non-RFR and vice-versa is not allowed.For more information, refer to Interest User Manual. |
Parent topic: Maintaining Drawdown Product Details for the Tranche