3.2.27 Specify Special Penalty Components

You can select components to which late payment charges are applicable using the Special Penalty Components 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 on Special Penalty tab.
    The Special Penalty Components screen is displayed.

    Figure 3-14 Special Penalty Components


    Description of Figure 3-14 follows
    Description of "Figure 3-14 Special Penalty Components"

  2. You can enter below details in this screen. For information on fields, refer to the field description table.

    Table 3-17 Special Penalty Components

    Field Description
    Product Details System displays the product code and a brief description of the product.
    Component By default, system displays all components defined in the Interest screen for the loan product. For commitment products, system defaults all components defined in the Interest and Fee screens (with exception of the generic component PRINCIPAL). However, you can specify the components and select the adjoining Apply Special Penalty check box for which late payment charges are applicable.

    You can amend the components list for a product by unlocking the product maintenance. This amendment does not impact the list of late payment charge components defined for existing contracts under this product. The change does not impact late payment charges already calculated based on the list of components defined at contract level.

    While calculating the basis amount for late payment charges, system does not consider the excluded components even if they remain unpaid after expiry of grace period.

    If you recalculate the already calculated late payment charges due to back value dated change of interest rate or principal, then during recalculation system considers the latest late payment charge components at the contract level. Therefore, the late payment charges are recalculated considering the changed rate but not the changed list of components at the product level.
    Apply Special Penalty Select this check box to indicate that system should apply special charges to the penalty component. By default, this check box is selected.

Parent topic: Setting Product Preferences