The conditions for the application of an interest rule can be defined in the Trade Finance Interest Class Definition Details screen.

The rule can be applied to any contract, irrespective of the currency of the contract, the customer and the branch involved. This is referred to as a general interest rule. You must define a general interest rule that would be applicable for any contracts in any currencies, involving any customers, customer groups or branches, before you define rules applicable to specific customers and contracts in specific currencies and in specific branches. The general rule can only be maintained at the head office branch.

Thus, the most general application of the condition can be that it is applicable to contracts in any currency and involving any customer.

Once an Interest Rule has been defined, you must create an Interest Class for the Interest Rule. Creating an interest class for every Interest Rule is mandatory. The details specified for Interest Class is then defaulted to the product you define.

The definition of a product should ideally be preceded by the definition of all Interest Rules applicable to the product. If not, the product definition has to be put on hold, the Interest Rules defined, and then the product linked to the Interest Rules.