1. Bilateral Loans
  2. Annual Rest Loans
  3. Introduction
  4. Specifying the Unearned Interest Calculation Parameters
  5. Indicating the schedule preferences

13.1.1.2 Indicating the schedule preferences

At the time of defining a product, you need to specify the schedule preferences for interest calculation and interest payment for the main interest component. Accordingly, the system calculates the interest amount for the unearned interest calculation schedules and accordingly allocate the calculated interest amount to the interest payment schedules.

Oracle Lending allows you to maintain both normal interest payment schedules and unearned interest calculation schedules for the main interest component. You can specify the schedule preferences in the Product Default Schedules screen.

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

From the Homepage, navigate to Bilateral Loans Product Definition screen.

From the Bilateral Loans Product Definition screen, click Preferences.

  1. From the Preferences screen, click Schedules.
    The Product Default Schedules screen is displayed.

    Figure 13-2 Product Default Schedules


    Product Default Schedules

  2. You can differentiate between the interest payment schedules and unearned interest calculation schedules. Enter U for unearned interest calculation schedule and P for payment schedules.

    Example

    Let us assume that you have defined the main interest component MAIN_INT for an installment loan product. At the time of specifying the schedule details, you need to:
    • Choose U for the main interest component MAIN_INT to specify the interest calculation schedules. Accordingly, the system calculates the unearned interest amount for the specified schedule.
    • Choose P for the main interest component MAIN_INT to specify the schedule details for interest payment. Accordingly, the system allocates the interest amount calculated (according to the interest calculation preferences) to the payment schedules that you define here for collection of interest.
    If you do not specify the schedule preferences for unearned interest, the system defaults a single unearned interest calculation schedule for the entire period of the contract.

Parent topic: Specifying the Unearned Interest Calculation Parameters