A.1.28 Convert a Precomputed (PC) Loan into a Simple Interest (SI) Loan
When converting a precomputed Loan into a simple interest Loan, Oracle Financial Services Lending and Leasing assumes the following default values:
- Accrual Calculation Method - interest bearing (simple interest)
- Maturity Date - Computed from the term and next payment due date
- Monthly Payment Amount - Computed from the interest rate, new principal balance, accrual start date, and term.
- All balances other than the Note balance are carried over to simple interest Loan.
The resulting new simple interest Loan will have the same account number with details entered/computed above.
CAUTION: The converting a precomputed Loan into a simple interest Loan transaction can be performed only by closing the nonperforming condition.
Table A-54 To reschedule precomputed Loan to interest bearing Loan
| Transaction | Parameters |
|---|---|
| Reschedule Pre-Compute Loan to Interest Bearing Loan | Txn Date |
| Reschedule Payment Start Date | |
| Amount | |
| Rate | |
| Term |
Parent topic: Monetary Transactions