1. Bilateral Loans
  2. Making Additional Disbursements and Rate Changes
  3. Introduction
  4. Interest Refund Required

9.1.3 Interest Refund Required

This check box is selected if the bank intends to pass the interest benefit of certain events to the borrower.

Following are instances of such events.
  • VAMI - Interest decrease, Maturity date is advanced
  • Prepayments including full prepayments leading to contract closure
If the check box is selected, the interest is recomputed based on the event that has occurred and the borrower's CASA/GL is credited for BADJ event ( Backdated adjustments ) defined at the product.This check box is not relevant if rates are decreased as a result of index changes.

Parent topic: Introduction