7.2 Defining Schedules for a Product

You can define schedules for the repayment of various components like the principal, interest, charges, and fees.

The attributes of the schedules for a product are defined through the Product Preferences screen. The following are the attributes of a repayment schedule:

• Mode of liquidation - auto or manual. This can be changed at the time of loan processing.
• Recomputation of schedules when a repayment of principal is made before it is due.
• Liquidation of back valued schedules upon initiation of a loan. This can be changed at the time of loan processing.
• The schedule type - amortized, capitalized, or normal

The Automatic Contract Update function automatically liquidates those schedules that you have marked for auto liquidation. If schedules are marked for manual liquidation, you have to liquidate them through the Contract Schedule Payments function.

Once you specify the attributes of schedules in the Product Preferences screen, you have to define the frequency of repayments in the Product Schedules screen.

When processing a specific loan, you can define the amount of principal that has to be repaid (at the frequency you specified) and the number of such repayment schedules. You can also change the schedule details that a loan inherits from the product that it involves.

Note:

If you do not define any schedules for the product, by default, the loans involving the product have bullet (or balloon) schedules. That is, all the components are liquidated on maturity.