Generate Planned Rate Changes
Purpose
To
automate the process of changing interest rates and the resulting instalment
amounts due or maturity dates on Variable Loan accounts with instalments.
The
system will:
- Generate a list of accounts affected by a rate
change
- Calculate a new maturity date or instalment
amount for the account
- Create communications advising the change of
rate and their new instalment or maturity date
Access
- Variable Loan | Create & Maintain Planned Interest Rate Changes |
Prerequisites
Control Record Default Action
- Variable Loan | Edit/View Control Details
The
Interest Rate Change Default Action field must be setup prior to generation of
the pending rate changes.
A
default calculation option must be specified:
- Instalment
A new Instalment amount will be calculated by determining how many instalments are currently left to pay on the account. The system will then calculate the new instalment amount needed to pay off the loan in the same number of instalments.
The calculation of remaining instalments is undertaken by dividing the current instalment amount into the future ledger balance including interest that would charge at the current future ledger interest rate. - Maturity
Date
Based on the existing instalment amount and frequency, the system will calculate the date which the loan will be paid off once the new interest rate is applied.
Note: One of the options must
be selected. Exceptions can be dealt with through the Planned Rate Change
Details dialog, once the Planned Rate Changes have been generated.
Future Dated Interest Profile Lines or Base Rate Lines
New
interest rate change lines must be loaded to the relevant Interest Profiles or
Interest Base Rates prior to the generation of the Planned Rate Changes.
The
Interest Profile / Base Rate must be selected to a Variable Loan account for
that account to be included in the process.
Process
The
Planned Rate Changes are displayed once the process wizard launched from
the 
function has been completed.
The
process wizard will display a list of accounts found. These should be quickly
reviewed to ensure that all expected accounts are included before the process
is completed.
The
process may be cancelled if the list does not generate the expected results.
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