This topic describes systematic instructions to configure loan interest and charges details.

1. Click Next in the previous data segment to proceed with the next data segment, after successfully capturing the data.
   The Interest and Charges screen appears.

   Figure 2-22 Interest and Charges

   
   

   
   Description of "Figure 2-22 Interest and Charges"

   
   
2. Specify the fields on Interest and Charges screen.
   For more information on fields, refer to the field description table.

   Table 2-15 Interest and Charges – Field Description

   Field	Description
   Interest Details
   Interest Description	Displays the interest description of the selected interest rate code.
   Interest Rate (%)	Specify the interest rate. Interest Rate is fetched from host back end product to which this loan account is mapped via the Business Product configuration.
   Rate Type	Displays the rate type. The system fetches the rate type from host back end product to which this loan account is mapped via the Business Product configuration.
   Margin / Variance ( %)	Specify the margin or variance in percentage. The Margin field appears if the Rate Type is selected as Floating. The Variance field appears if the Rate Type is selected as Fixed. This field is editable if the Margin Allowed toggle is ON at the product level
   Effective Rate (In %)	Displays the effective rate for the loan calculated as Interest Rate + or – Margin/Variance.
   APR	Displays the annual percentage rate value for each applicable interest .
   Charge Details
   Charge Description	Displays the type of charges. The system also displays the total values of uncapalitalized and capitalized charges and insurance.
   Amount	Displays the amount.
   Rate	Displays the rate for the charge component.
   Waive	The user will have the option to waive all charges or selectively waive a particular type of charge.
   Capitalize	Select if you want to capitalize the fees. The charges cannot be capitalized if the same are waived in this case this field appears disabled. This option is enabled only for the fees that are set to capitalize while configuring product.

3. Click Next to navigate to the next data segment, after successfully capturing the data. The system will validate all mandatory data segments and data fields. If mandatory details are not provided, the system displays an error message for the user to take action. User will not be able to proceed to the next data segment, without capturing the mandatory data.