1. Bilateral Loans
  2. Making Additional Disbursements and Rate Changes
  3. Navigating to different tabs in Value Dated Amendment screen
  4. Making Changes in Interest

9.2.2 Making Changes in Interest

Through the Value Dated Amendment function, you can make changes to the maturity date, the principal and specify a new value date for the loan.

However, if you want to change the interest rate, the rate code, the spread or the interest amount, you have to invoke the Contract ICCF Detailsscreen of the ICCF module through the Loan and Commitment Value Dated Amendments screen.

Specify the User ID and Password, and login to Homepage.

From the Homepage, navigate to Loan and Commitment Value Dated Amendments screen.

  1. From the Loan and Commitment Value Dated Amendments screen, click Interest.
    The ICCF Details screen is displayed.

    Figure 9-2 ICCF Details


    Description of Figure 9-2 follows
    Description of "Figure 9-2 ICCF Details"

  2. You can make Value Dated Amendments only to the following components in the Contract ICCF screen.

    Table 9-2 ICCF Details

    Field Description
    Interest Rate Enter the new interest rate. However, you cannot:
    • Change the interest rate if you have defined zero interest for the loan.
    • Change the interest type.
    For fixed rate contracts, you can change the rate applied by specifying a new rate.

    Note:

    You can change the interest rate or the schedule only when a back valued change does not affect schedules that have even one of the components (Interest/Charges) partly/fully liquidated.
    Rate Code If a floating type of interest has been defined, enter the new rate code.
    Spread Enter the new spread here.
    Interest amount Enter the new interest amount.
    Acquired interest If the loan was already initiated when it was input, the interest amount that has been accrued should be entered here. The amount is taken into account by the system during the next liquidation cycle. You can make changes to the acquired interest through this screen.
    Waiver The attributes of an interest component that have been defined for a product are applied on a contract involving the product. If, for some reason you do not want to apply the interest component for the contract you are processing, you can do so by checking this field. The interest is calculated but it is not applied on the contract.

    For back valued changes in interest rate the system takes right action. Accruals are redone till the last accrual date. In addition, in case of a back valued change, the value date should not be beyond the last liquidation date.

    Note:

    • A fee can be changed only for a commitment.
    • If the UDF RATE-VARIANCE is maintained as a non-zero value for a commitment contract to which the loan is linked, dual authorization is required for rate and spread changes for fixed rate contracts and rate code and spread changes for floating rate contracts.
    For more information about this screen, refer to Interest User Manual.

    For more details regarding dual authorization, refer to the Dual Authorization section in this User Manual.

    Exponential Interest Details

    • Rate Basis

      This value gets defaulted from the Interest Class Maintenance screen. If required, you can modify the value. You can select the options.

      • Per Month – This option is used for fixed per month rate.
      • Per Annum/Not Applicable – This option is used for annual rate input. The value input is considered as resolved rate.
      • Quote Basis – This option is used for float rate input for all quote basis.
    • Exponential Interest Method

      This value gets defaulted from the Interest Class Maintenance screen. If required, you can modify the value.

      For more information about exponential interest, refer to About Exponential Interest section in this User Manual.

Parent topic: Navigating to different tabs in Value Dated Amendment screen