This topic describes about configuring various types of Business components applicable to the product.

1. Click Next in the Basic Details screen to link the components.
   The Business Components screen displays.

   Figure 2-32 Business Components

   
   

   
   Description of "Figure 2-32 Business Components"

   
   

Principal

2. Specify the fields on Principal screen.
   The Principal type components defined in the Business Components section of Product segment are listed here. Click on toggle status to disable the component selected.

   Note:

   Atleast one principal component type needs to be enabled

   Figure 2-33 Principal

   
   

   
   Description of "Figure 2-33 Principal"

   
   

   For more information on fields, refer to the field description table.

   Table 2-32 Principal - Field Description

   Field	Description
   Type	Displays the type of component.
   Code	Displays the unique code.
   Description	Displays the description of the code.

Interest

3. Specify the fields on Interest screen.

   The Interest type components defined in the Business Components section of Product segment are listed here. The user can link the component code by specifying the pricing preferences and currency wise rate preferences for interest and enable the toggle.

   Figure 2-34 Interest - Basic Details and Component Preferences

   
   

   
   Description of "Figure 2-34 Interest - Basic Details and Component Preferences"

   
   

   For more information on fields, refer to the field description table.

   Table 2-33 Interest - Basic Details and Component Preferences

   Field	Description
   Type	Displays the type of component as Interest.
   Code	Displays the unique code of interest component .
   Description	Displays the description of the interest component code

   Figure 2-35 Interest - Pricing Preferences

   Interest pricing preferences for different periods are captured in this section. For example, For first 3 years the interest to remain fixed, followed by floating rate for the remaining term can be configured in this section as below.

   Table 2-34 Interest Pricing Preferences

   Serial Number	Period	Unit	Rate Application
   1	3	Years	Fixed
   2	999	Years	Floating

   
   

   
   Description of "Figure 2-35 Interest - Pricing Preferences"

   
   

   For more information on fields, refer to the field description table.

   Table 2-35 Interest - Interest Pricing Preferences - Field Description

   Field	Description
   Unit	Displays the unit as Months from the list. User can modify the same. The allowed values are defined by the lookup type PERIOD_UNIT.
   Period	Displays the default period as 999. User can modify the same.
   Pricing Type	Displays the type as User Defined from the drop-down list. The other values are Rate Code Based Price Code Based If it is User Defined, then interest rate value is directly given at the time of on-boarding loan account. If it is Rate Code Based, interest rate value is derived based on the rate code maintenance configuration in common code User can modify the same. The allowed values are defined by the lookup type PRICING_TYPE.
   Rate Code	This field is enabled only if the Pricing Type is selected as Rate Code Based.
   Price Code	This field is enabled only if the Pricing Type is selected as Price Code Based.
   Rate Application	Displays the rate application as Fixed by default. Loan officer can modify the same to Floating as well. This field is enabled and mandatory only if Pricing Type is Rate Code Based or Price Code Based. On selecting Fixed, the rate value remains fixed for the period selected in the row, eventhough the rate changes at the rate code/price code level. On selecting Floating, the rate value varies as per the changes to the rate code/price code level, for the period selected in the row. The allowed values are defined by the lookup type RATE_APPLICATION.
   Spread Type	This field refers to bank's profit margin. Displays the type as User Defined from the drop-down list. User can modify the same. User defined means that the spread is specified at the time of loan account onboarding. The allowed values are defined by the lookup type SPREAD_TYPE.
   Currency	Displays the currency selected.
   Minimum Rate	Displays the minimum rate for the interest type component. This value is populated from Currency Wise Rate Preference setup at product segment and can be modified. Specify the minimum rate value up to 6 decimals and ensure that the value is less than the Maximum rate and also within the range of product segment level minimum rate and maximum rate for the same component. Also, note that system validates during account on-boarding and also during the Life cycle of the loan and displays an error if final rate of loan account goes below the minimum rate or goes above the maximum rate.
   Maximum Rate	Displays the maximum rate for the interest type component. This value is populated from Currency Wise Rate Preference setup and can be modified. Specify the maximum rate value up to 6 decimals and ensure that the value is more than the above field minimum rate and also within the range of product segment level minimum rate and maximum rate for the same component. Also, note that system validates during account on-boarding and also during the Life cycle of the loan and displays an error if final rate of loan account goes below the minimum rate or goes above the maximum rate.
   Minimum Spread Rate	Displays the minimum spread rate for the interest type component. This value is populated from Currency Wise Rate Preference setup and can be modified. Specify the minimum spread rate value up to 6 decimals and ensure that the value is within the range of product level minimum spread rate and maximum spread rate for the same component defined in product. Also, note that system validates this value either during account on-boarding or during the Life cycle of the loan and displays an error if spread value goes below the minimum spread rate or if minimum spread rate is greater than maximum spread rate.
   Maximum Spread Rate	Displays the maximum spread rate for the interest type component. This value is populated from Currency Wise Rate Preference setup and can be modified. Specify the maximum spread rate value up to 6 decimals and ensure that the value is within the range of product level minimum spread rate and maximum spread rate for the same component defined in product. Also, note that system validates this value either during account on-boarding or during the Life cycle of the loan and displays an error if spread value goes below the minimum spread rate or if minimum spread rate is greater than maximum spread rate.

Fees

4. Specify the fields on Fees screen.

   The Fee type components defined in the Business Components section of Product segment are listed here. The user can link the component code by specifying the charge code preferences and enabling the toggle.

   Figure 2-36 Fees

   
   

   
   Description of "Figure 2-36 Fees"

   
   

   For more information on fields, refer to the field description table.

   Table 2-36 Fees - Field Description

   Field	Description
   Charge Code	Select the charge code from the list. Displays the charge codes from Charge Code maintenance screen.
   Charge Code Description	Displays the description of the charge code selected.
   First Due Date	This is applicable only for periodic fees component. It is defaulted as First Due Date. The first due of periodic fees will be same as installment due date and further fee due dates will be by adding fee frequency to the previous due date. The allowed values are defined by the lookup type FEE_FIRST_DUE_DATE.
   Fee Frequency	This is frequency of charging the periodic fees. The allowed values are MONTHLY QUARTERLY ANNUALLY HALF YEARLY The allowed values are defined by the lookup type FEE_FREQUENCY.

5. Click Cancel to close the details without saving.
6. Click Back to navigate to previous screen (Basic Details.
7. Click Save and Close to save the details.
8. Click Next to save and navigate to the next screen (Product Preference).