1.4.3 Alternate Risk Free Rate Preferences

Table 1-3 Field Description

Field Description
Alternative Risk Free Rate Preferences

System to consume Risk Free Rates daily from a published source and it is applied for floating rate types and Arrears collection type. You can select any one of the below option as RFR calculation methods

  • Plain
  • Lookback
  • Payment Delay
  • Lockout
Look Back Days

Specify the number of days to look back for interest rate.
Payment Delay Days

Specify the number of days by which the interest (or installment) payments are delayed by a certain number of days and are thus due a few days after the end of an interest period.
Base Computation method

Select the base computation method. It can be either Simple or compounded.
Spread\ Margin Computation method

Select the Spread\ Margin computation method. It can be maintained as either Simple or compounded.
Spread Adjustment computation method

Spread adjustment method can be kept as either Simple or compounded.
Rate compounding

Selecting this option, enables the user to indicate whether the rate compounding to be applied for each calculation period.

Parent topic: Maintaining ICCB Rules