3.3.2 Interest and Charges

This topic describes systematic instructions to configure loan interest and charges details.

In this data segment the Interest Details section displays all type of interest rates applicable for the account.

The Charge Details section displays all type of charges applicable or levied for this loan application. These charge details are fetched from the Host.

The Insurance Details section displays the all type of insurances applicable for this loan application. These insurance details are fetched from the Host.

To add interest and charges details:

  1. Click Next in the previous data segment to proceed with the next data segment, after successfully capturing the data.
    The Interest and Charges screen appears.

    Figure 3-37 Interest and Charges


    Description of Figure 3-37 follows
    Description of "Figure 3-37 Interest and Charges"

  2. Specify the fields on Interest and Charges screen.
    For more information on fields, refer to the field description table.

    Table 3-26 Interest and Charges – Field Description

    Field Description
    Interest Details Displays the interest details in this section.
    Interest Description Displays the interest description of the selected interest rate code.
    Interest Rate (%) Specify the interest rate.

    Interest Rate is fetched from host back end product to which this loan account is linked through the Business Product configuration.

    The system validates the Floor and Ceiling rates for each interest component.
    • If the effective rate is less than the floor rate, the system stamps the floor rate for that component.
    • If the effective rate is greater than the ceiling rate, the system stamps the ceiling rate for that component.
    Rate Type Displays the rate type.

    The system fetches the rate type from host back end product to which this loan account is mapped through the Business Product configuration.
    Margin / Variance ( %) Click the link of margin or variance in percentage.
    It displays the pop-up list of all margins.
    • Product Margin
    • Risk based Margin
    • Discretionary Margin
    • Relationship Benefit Margin
    • Bundle Margin

    The Margin field appears if the Rate Type is selected as Floating.

    The Variance field appears if the Rate Type is selected as Fixed.

    This field is editable if the Margin Allowed toggle is ON at the product level.

    The Bundle Margin is displayed in the drop-down list only if loan is opened as part of a bundle application and bundle margin benefit is applicable.

    Effective Rate (%) Displays the effective rate for the loan calculated as + Interest Rate or – Margin/Variance.
    APR Displays the annual percentage rate value for each applicable interest.
    Action

    • Click Editto edit the added records

    • Click Save to save the records.

    • Click Deleteto delete the added records.

    Charge Details In this section, displays the all charge details.
    Charge Description Displays the type of charges. The system also displays the total values of capitalized and uncapitalized charges and insurance.
    Amount/Percentage Displays the charge amount or percentage for the loan application.
    Rate Displays the rate for the charge component.
    Waive Switch toggle ON to waive all charges or selectively waive a particular type of charge.
    Capitalize Switch toggle ON to capitalize the fees.

    The charges cannot be capitalized if the same are waived and this field appears disabled.

    This option is enabled only for the fees that are set to capitalize while configuring product.
    Insurance Details In this section, displays all insurance details. This section appears only when Oracle Banking Retail Lending Servicing is the host.

    For more information, refer to the Business Product Host Mapping topic in the Configurations User Guide.

    Insurance Description Displays the type of insurances.
    Amount Displays the amount.
    Waive toggle ON to waive all insurances or selectively waive a particular type of insurance.
    Capitalize Switch toggle ON to capitalize the fees.

    The insurance cannot be capitalized if the same are waived and this field appears disabled.

    This option is enabled only for the fees that are set to capitalize while configuring product.
  3. Click Next to navigate to the next data segment, after successfully capturing the data. The system will validate all mandatory data segments and data fields. If mandatory details are not provided, the system displays an error message for the user to take action. User will not be able to proceed to the next data segment, without capturing the mandatory data.

Parent topic: Application Enrichment Stage