Specifying the ICCF Details

4.2.16 Specifying the ICCF Details

Numerous interest rates, charges and fees can be defined for a product through the ICCF (Interest, Commission, Charge or Fee) screens. By default, all these are applied on the loan involving the product.

The attributes pertaining to the component defined as the Main Interest (by checking the ‘Main Component’ in the ICCF Product Details screen), is displayed here. If you want to make changes to the Main Interest component only, you can do so through this screen without having to invoke the Contract ICCF screen. If you change the Main Interest details, the changed values will be applied on the loan, along with the specifications for the other components (fee, charge, and so on.). If you want to change the details for any other ICCF component, you have to invoke the Contract ICCF screen by clicking on the ICCF button and then make the changes.

Table 4-7 ICCF Details

Field	Description
Rate Type	The rate type applicable for the product involved in the loan will be displayed in the respective field in the screen. It can be one of the following: Fixed - a fixed rate Floating rate - a rate that changes periodically or automatically as per your specifications in the Floating Rate Table Special - an amount instead of a rate For more information on negative interest rate processing, refer to the Interest User Manual. Floating rate supports both Risk Free Rates and Non-Risk Free Rates. For more information on floating rate, refer to Interest User Manual.
Floating Rate Code	The Floating Rate Code specified for the product involving a loan is displayed in the screen. You can change it to suit the needs of a specific loan and cannot be amended as a part of contract amendment. However, Float Rate code can be amended by Value Dated Amendment.
Spread/Margin	For a loan with a floating interest rate, you can specify the Spread that you want to apply, over the rate maintained in the Floating Rates table. This Spread should be greater than or equal to the Minimum Spread and less than or equal to the Maximum Spread defined for the product, involved in the loan. If the spread you apply is greater than the Maximum Spread, then the Maximum Spread will be applied on the rate. On the other hand, if it is less than the Minimum Spread defined for the product, the Minimum Spread will be picked up. For a floating rate, the spread will be applied over the market rate, applicable for the day.
Spread Adjustment	For contracts migrated from LIBOR to RFR, the difference in interest rate is captured on this.
Fixed Interest Rate	If the loan involves a fixed interest rate product, the Default Rate defined in the Product ICCF screen will be displayed here. This rate can be changed if required. The rate can be changed (through this screen), only for the main interest component. This changed rate should be greater than or equal to the Minimum Rate and less than or equal to the Maximum Rate, defined in the Product ICCF screen.
Interest Basis	For information on interest basis, refer to the Interest User Manual. Example The minimum and maximum rates defined in the product ICCF screen are 2% and 10% respectively. The interest rate, which defaults from the product, is 5%. The interest rate you have specified for the loan is 8%. This will be accepted, as it does not exceed the maximum rate of 10%. However, if you want to specify the rate as 1%, this will not be accepted, as this rate is less than the minimum rate of 2%. Note: You can define a revision schedule for a loan with a fixed rate of interest. The revision schedule can be brought into effect when you change the fixed rate through an amendment. Note: For float rate contract, on the ICCF screen, if you change any parameter which warrants rate to be re-picked up, you can click on the Re-Pickup Float Rate button, to see the revised rate. Else, on saving the contract, system re-picks automatically. For example, on visiting the ICCF screen, rate for the specified rate code, reset tenor & effective date combination is displayed. If you change, Rate code or Reset Tenor or RFR parameters like Look Back days etc, then clicking on this button fetches the rate applicable for this combination & displays on the Rate field. Additionally the Net Rate is also gets re-computed considering the revised rate, against the min / max rates specified.
Special Interest Amount	If the product involved in the loan has been defined with a special interest, the interest amount applicable for the loan is displayed in this screen. You can change this amount.

Parent topic: Loan Disbursement Details