9.2.5 Roll-over of Interest, Charge and Fee Components

The interest, charge and fee components of the new (rolled-over) loan can be picked up, either from the old loan or from the product involving the old loan. The following example illustrates this point:

Example

When defining a product you specified that all loans involving it have an interest schedules every month and an annual fee.

Assume that you have processed a loan, involving this product, with the following attributes:

• Interest payment only on Maturity Date
• No fees

When rolling-over this loan, you have two options:

• You can indicate that the interest and fee details specified for the product, are to be applied to the new (rolled-over) loan. In such a case, the new loan have an interest payment schedules every month and an annual fee.
• You can specify that the interest and fee details, defined for the loan being rolled-over (old loan), should be made applicable to the new loan. In this case, the new loan have an interest payment schedule only on Maturity Date and have no annual fee.