11.2.8 Indicating your Specifications for the different ‘Rates’
You may need to print the Customer Effective Loan Rate, the Annual Effective Loan Rate, or the Effective Rate of interest in advices sent to the customer and also in central bank reports. For the system to compute these rates and print them on advices and reports you need to enable these options as a branch level preference.
If you enable any of these options, you also need to specify the denominator basis which is to be used in the computation formula.
- 360
- 365
- Actual
- Currency
Note:
Ensure that you enable these options in the Loans Product Preferences screen as well.For details examples on how the rates are calculated you can refer to the Defining attributes specific to a Loans product topic of this manual.
Specifying Auto Liquidation of Delinquent Contracts
For the loans that have been defined for auto liquidation, you can specify whether the system should liquidate delinquent contracts also.
If you specify auto liquidation for delinquent contracts, the system generates delinquency records for overdue schedules.
However, if you do not opt for auto liquidation of delinquent contracts, the system does not liquidate such contracts.
REVN of Liquidated Contracts
Select this check box to indicate that rate revision should be applied for liquidated contracts. Rate revision is applicable only for floating automatic and floating periodic auto type of loans.
Note:
Auto adjustment happens only when the Overpayment & Auto Schedule Adjustment check box is selected for the product.