General Setup for Compound Interest
Loan Products
This section outlines how to set up the general
parameters for Loan Products that use the Compound Interest
calculation method.
Important: The following fields
are required and must be completed: Description,
Interest Calculation Method, Payment Frequency, Default Number of Instalments,
Maximum Number of Instalments, Minimum Loan Amount, Maximum Loan Amount, Maximum
Administration Fee, Maximum Preparation of Business Plan Fee, and Maximum Number
of Days Between Date Granted and First Instalment Date.
Only field values relevant to your legal entity's
country and the selected interest calculation method will be displayed.
Interest is recorded during the Month
End process, which runs automatically in the background according to
the date set in the General Accounting Setup. Any outstanding interest and fees
will be recorded upon the loan's final payment. Additionally, interest and fees
will be recorded if an extra Month End is requested and executed for the Legal
Entity on that specific date.
Setting Up a New Loan Product (General
Screen)
- Provide a Description (name)
for the Loan Product.
- Select the Enabled checkbox
to make this loan product available for use.
- For Interest Calculation
Method, choose Compound Interest Calculation Method
from the list.
- Select the applicable Payment
Frequency from the list (e.g., Fortnightly, Monthly, Monthly by
Rule).
- Specify the Initial Loan
Amount for this loan product.
- Set the Minimum Loan Amount
for this product.
- Set the Maximum Loan Amount
for this product.
- Specify the Initial Number of
Instalments. This field cannot accept values smaller than 1.
- Set the Minimum Number of
Instalments for this loan product.
- Set the Maximum Number of
Instalments for this loan product.
- RSA Note: Affordability
Guidelines suggest that Credit Providers should not offer unsecured term
loans for longer than 5 years.
- Select the Skip First Instalment
Date checkbox if the first installment date should be skipped when
calculating installment dates.
- Select the Print Loan
Schedule checkbox if you want the system to automatically print a
loan schedule when a new loan is created using this product.
- Set the Min Days between Date Granted
and First Instalment Date. This is the minimum number of days allowed
between the loan's granted date and the first installment date.
- Set the Max Days between Date Granted
and First Instalment Date. This is the maximum number of days allowed
between the loan's granted date and the first installment date.
Buttons
- Cancel: Click if you don't
want to save the information to the database.
- Save: Click to save the
information to the database.
- Close: Click to close the
request and return to the previous page without saving.
- Save & Close: Click to
save the information to the database and then close the page, returning you to
the previous screen.