1.1.13.2 Limitations
- Discounted loans with bullet schedule only is considered for Exponential interest changes.
- Discounted loan for VAMI is not applicable.
- A separate product should be used for Exponential and Linear (normal) type of contracts.
- For existing loans Exponential Interest check box method must be used in ICCF screen.
- For Exponential Interest check box can be selected only for main interest and penal component. For other interest component this check box has to be cleared.
- It is assumed that day’s basis amendment for components are not done once a loan contract is created. This has to be operationally controlled.
- If partial prepayment of discounted loan is done, subsequent maturity date extension is not allowed.
- The account statements and advices where the rates are being displayed continue to show the resolved rates only.
- Quote basis available in Float Rate Maintenance screen is applicable to loans module only. Calculation of Exponential Interest.
Parent topic: About Exponential Interest