1.9.13 Defining Interest Payment Schedules for the Product

This topic describes how to define interest payment schedules for the product.

You have to specify the following attributes or preferences through the Product Preferences screen:

• Mode of liquidation - auto or manual. This can be changed at the time of contract processing. Your specification will be made applicable to all components of the contract. Liquidation of back valued schedules upon initiation of a contract. This can be changed at the time of contract processing
• Re-computation of interest on the future schedules of a contract when a repayment of principal is made before it is due
• The schedule type - amortized, capitalized or normal

Once these attributes of the schedules are defined in the Product Preferences screen, the frequency of repayments has to be defined through the Product Schedules screen.

If you do not define any schedules for the product, by default, the contracts involving the product will have bullet (or balloon) schedules. That is, all the components will be liquidated at maturity.