1.5.4.1.4 Payment Details
Payment details are added for the application in the Entry Stage.
When you click Fetch Details after specifying the Value date and Limit Date, the payment and tax components details will be fetched under the Payment Components and Settlement section.
For information on the screen fields, refer to the field description table below.
Table 1-57 Payment Details - Field Description
| Field | Description |
|---|---|
| Loan Contract Ref No | The Loan Contract Ref No for which the payment to be done. |
| Value Date | The date on which the contract comes into effect in the system. |
| Limit Date | The date to which the payment component details to be fetched for the selected loan. |
| Loan Amount | The Loan Amount associated with the contract. |
| Tax Details | Tax details associated with the loan contract. |
| Tax Rule | The rule maintenance is specific to each component in the system. |
| Basis Component | The component for which the LIQD (Liquidation, Reorganization, or Reconstruction) is triggered can be subjected to taxes according to the laws in your country. |
| Tax Category | Select the tax category from the drop-down list against each tax rule that is linked to a tax scheme. |
| Event | Specify the event upon which the tax is to be applied. |
| Waived | The late payment charge schedule which should be waived for a component. |
| Component Name | Name of component for which payment is done. |
| Amount Due | The amount is outstanding for the component being liquidated. |
| Overdue Days | The number of days outstanding for the component being liquidated. |
| Overdue | Amount overdue for the component when the grace period is over. |
| Outstanding | Outstanding amount of the payable component. |
| Payable Amount | The Payable amount to be given as part of payment for each component. |
| Tax | Taxes charged on the interest, principal, and so on. |
| Amount Waived | The amount waived for the contract. |
| Amount Capitalized | The amount capitalized for the contract. |
| Prepayment Penalty Amount | The Penalty amount to be given in case the payment type is prepayment. |
| Penalty Rate | Specify the Penalty Rate in this field to calculate the Penalty Amount for the prepaid Principal. |
| Prepayment Schedule Processing | If prepayment is done for a loan contract, the payment schedule will be based on LIFO and FIFO. |
| Total settlement Amount | The Total amount being paid for all the payment components. |
When you pay the principal amount in advance , you violate the contract schedule in the case of a Prepayment Penalty. The user can collect a penalty in the form of a penalty amount or penalty rate against the principal amount as a result.
The user selects penalties based on two types: either by entering the penalty amount or the penalty rate, and also chooses FIFO, LIFO, or PRORATA from the Prepayment Schedule Processing drop-down for Prepayment Schedule Processing. If the prepayment schedule is chosen as LIFO, then theReduce Tenor applies. Otherwise, it defaults to FIFO.
If prepayment is done on a loan contract, then the schedule is rebuilt based on FIFO and LIFO logic.
FIFO
- Principal amount - 12,000,000 USD
- Value date - 01 March 2005
- Maturity date - 01 March 2006
Table 1-58 Schedule payment
| Start Date | Component | Frequency | No. of Schedules | Unit | Amount |
|---|---|---|---|---|---|
| 01-Apr-05 | Interest | Monthly | 11 | 1 | - |
| 01-Apr-05 | Principal | Monthly | 11 | 1 | 1,000,000 |
| 01-Mar-06 | Interest | Bullet | 1 | 1 | - |
| 01-Mar-06 | Principal | Bullet | 1 | 1 | 1,000,000 |
Table 1-59 Schedule payment with FIFO logic
| Start Date | Component | Frequency | No. of Schedules | Unit | Amount |
|---|---|---|---|---|---|
| 01-Apr-05 | Interest | Monthly | 11 | 1 | - |
| 01-Apr-05 | Principal | Monthly | 1 | 1 | 1,000,000 |
| 15-Apr-05 | Principal | Monthly | 1 | 1 | 1,600,000 |
| 01-Jun-05 | Principal | Monthly | 1 | 1 | 400,000 |
| 01-Jul-05 | Principal | Monthly | 8 | 1 | 1,000,000 |
| 01-Mar-06 | Interest | Bullet | 1 | 1 | - |
| 01-Mar-06 | Principal | Bullet | 1 | 1 | 1,000,000 |
LIFO
Table 1-60 Schedule payment with LIFO logic
| Start Date | Component | Frequency | No. of Schedules | Unit | Amount |
|---|---|---|---|---|---|
| 01-Apr-05 | Interest | Monthly | 11 | 1 | - |
| 01-Apr-05 | Principal | Monthly | 1 | 1 | 1,000,000 |
| 15-Apr-05 | Principal | Monthly | 1 | 1 | 1,600,000 |
| 01-May-05 | Principal | Monthly | 9 | 1 | 1,000,000 |
| 01-Feb-06 | Principal | Monthly | 1 | 1 | 400,000 |
| 01-Mar-06 | Interest | Bullet | 1 | 1 | - |
| 01-Mar-06 | Principal | Bullet | 1 | 1 | 0 |
Prorata
If you select prorata as a payment schedule processing for a product, the schedules and tenor remain the same and the outstanding balance is equally calculated on the total number of schedules. The prorata amount is calculated based on the below calculation.
Prorata amount = Outstanding principal amount after prepayment/ Number of contract schedules in the amount due for a principal component after value date.
Example:
- Loan amount - 120,000.00
- Value date - 01 June2015
- Loan booking date - 21 July 2015
- Maturity date - 20 July 2016
Table 1-61 Schedule payment with Prorata logic
| Start Date | Component | Frequency | No. of Schedules | Unit | Amount |
|---|---|---|---|---|---|
| 01-Jul-15 | Principal | Monthly | 13 | 1 | 8,572.00 |
| 20-Jul-16 | Principal | Bullet | 1 | 1 | 8,564.00 |
When you click the Calculate button, the Payable Amount, Tax, Amount Waived, and Amount Capitalized will be added to make up the total settlement amount. If there is a prepayment penalty, we will add the penalty amount (or the amount based on penalty rate).
Parent topic: Payment Application Entry