Post Interest Rate Change Notification
Purpose
To Post Future Rate Changes on Variable loans for both Future and Current ledger interest rate changes, create direct debit schedules and create communications to be sent to the account holder.
Prerequisites
A backup should always be taken immediately prior to the planned rate changes being posted.
This process will:
- Update the the Instalment Amount
- Create a direct debit schedule for Interest Only Loans
- Update the direct debit date/amount/frequency as required.
- Post the Interest Profile or Interest Base Rate line, resulting in the interest rate change being applied to the account
- Create a communication to be sent to the account holder
Access
- Variable Loan | Create & Maintain Interest Rate Notifications |
Process
Set the Status to Ready to Post, review the accounts listing. Select 
display the wizard.
Click 
- to post. 
may be used if further review is needed.
Once the progress bar is complete, Click | 
to return to the Tree Menu.
Result
The accounts will not longer display in the Interest Rate Change Notification Browse .
For an Principal and Interest account, Instalment Amount will be updated on the Account Details dialog.
For an Interest Only Account a Direct Debit Schedule will be created for the Interest Only period and the Instalment Amount will be updated on the Account Details dialog to take effect once the Direct Debit Schedule has been completed
The Interest Profile rates will be updated with the new interest rate and date the rate is effective from. This will sit with the posted flag unchecked until the Interest Posting after this date has taken place. Once the posting takes place the rate line will be updated to Posted and a Rate Change transaction will have posted to the account with a value date that the interest rate change was applied on the interest profile. Interest will be calculated at the new rate from this date forward.
Related Articles
Variable Loan Interest Rate Change Notifications
Purpose To automate the process of creating interest rate change advice notices with updated calculated values. The system will: Generate a list of accounts affected by a rate change percentage Create communications advising the change of rate Allow ...Interest Rate Change Notification Details
Purpose Allows the management of accounts when changing the Interest Rate on a loan This can be calculated for Interest Only and Principal and Interest loans Access Variable Loans | Create & Maintain Interest Rate Notifications | Dialog Field ...Variable Loan Account Fields
Variable Loan Account Fields Field Explanation [LOACC_ARR+LETFEE] Arrears and letter fee This is the current (arrears) balance plus the letter fee generated during the letter run [LOACC_ARR+LETFEE+ACRINT] Total of arrears plus the letter fee and ...Variable Loan 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 ...Create & Maintain Planned Interest Rate Changes
Purpose To post the Interest Profile or Interest Base Rate line and update the Maturity Date and/or the Instalment Amount Timing First business day following the Interest Rate effective date Access Variable Loan | Create & Maintain Planned Interest ...