4.9.9.7 Specifying Schedule Details

You can define reduction schedules in the Schedules Details section of the screen. You can also define payment schedules for fee components, if attached to the tranche. The schedules defined for the tranche product defaults here but you can modify the default values.

Select the Schedule Details and click Add Row button and add the schedule details.

• Schedule Type

  You have to identity the schedule type being defined. For defining reduction schedules, select C. If you want to define payment schedules for fee components, select the option P.

• Component

  Select the component for which you are defining the schedule details. All the fee components associated with the contract are available in the option list provided. If you are defining reduction schedules, select the PRINCIPAL component.

  Note:

  For fee components of type Advance, the system does not allow you to define multiple schedules for the same fee component. However, you can define multiple instances if only bullet schedule exists for the component.
• Start Date and End Date

  This is the period for which selected fee component will be applied for the contract. This period should be within the tranche start date and end date. By default, the start date is equal to the tranche start date.

• Frequency
  This indicates the frequency/interval at which the schedules fall due. The available frequencies are:

  • Daily
  • Weekly
  • Monthly
  • Quarterly
  • Half-yearly
  • Yearly
  • Bullet: The system builds the bullet schedule based on tranche available amount.

  Note:

  You can select the Bullet frequency for defining reduction schedules.
• Unit

  Unit of frequency identifies the number of occurrences within a frequency. Unit 2 and Frequency Monthly means bimonthly frequency that is, the event occurs once in 2 months.

• No
  Based on the frequency and the unit of frequency you specify, the system displays the number of schedules for the period within the start date and end date. For instance, consider the following:

  • Start Date - 30-JUN-2005
  • End Date - 15-MAR-2006
  • Frequency - Monthly
  • Unit – 1

  Then, the system displays the number as 9 since there are nine such schedules for the period.
• Percent/Amount

  You can specify a percentage or an amount for each payment/reduction schedule. If you specify the percentage, system computes equivalent amount and vice-versa. Based on this Oracle Banking Corporate Lending determines the available amount and then build the reduction schedule for the tranche.

  Note:

  If you are not specifying the interest schedule details here, the system accepts the details maintained at the drawdown product level.
  You can specify the amount due for each schedule for fee components of type User Input.