Specify Interest Details

Alternative Risk-Free Rates Preferences

The options of Alternative Risk-Free Rates Preferences are defaulted from Interest Class Maintenance screen (LFDINTCL). If required, you can modify.

For more information, refer to Interest User Manual.

Moratorium Interest Details

Table 3-3 Moratorium Interest Details

Field	Description
No of Schedules	Specify the no of moratorium interest schedules.
Frequency	You can select the moratorium frequency as one of the following: Daily Monthly Yearly
Type	You can select the moratorium type as one of the following: Liquidate Immediate Liquidate with First schedule Across schedule Capitalize Consumer Credit Note: In Product Definition -Interest Class Maintenance screen, once you select the Component which is created in Interest Class Code screen and click Default from Class, then system automatically defaults moratorium interest class code.

Field

Description

No of Schedules

Specify the no of moratorium interest schedules.

Frequency

You can select the moratorium frequency as one of the following:

Daily
Monthly
Yearly

Type

You can select the moratorium type as one of the following:

Liquidate Immediate
Liquidate with First schedule
Across schedule
Capitalize
Consumer Credit

Note: In Product Definition -Interest Class Maintenance screen, once you select the Component which is created in Interest Class Code screen and click Default from Class, then system automatically defaults moratorium interest class code.

Exponential Interest Details

Table 3-4 Exponential Interest Details

Field	Description
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 topic in this User Manual.
Exponential Factor Percentage	By default, the ‘Exponential Factor Percentage’ is 100% for exponential interest and non-exponential interest method. In case of exponential interest method, you can change the Exponential Factor Percentage value. In case of non-exponential interest method an override appears saying for non-exponential interest method the factor percentage is considered as 100%.
Allow Reporting Only and Reporting Component Type	Allow Reporting Only and Reporting Component Type are defaulted from Interest Class Maintenance (LFDINTCL) screen and you cannot modify this fields as they are read-only fields.
Penal Compounding on Rate Revision	The Penal Compounding on Rate Revision check box is available in the Interest tab of Product Preferences screen. You select or clear for penalty products. It allows you to add back the unpaid amount at the end of every schedule to the basis amount for penalty calculation for the next month during rate revision.