Repayment Settlement

Use

You use the condition type repayment settlement to enter types of repayment settlement other than immediate settlement .

Note Note

You can also use the repayment settlement to map the immediate settlement function. You can also do this by activating the Immediate Settlement indicator when you set up the Repayment condition item.

End of the note.

The following repayment condition types are available for repayment settlement:

  • Annuity repayment settlement

  • Installment repayment settlement

  • Repayment settlement

Prerequisites

  • You have entered the repayment condition item.

  • The Other Settlement indicator in the repayment item must not be set.

Procedure

  1. Use the Insert Additional Items function to enter the condition type Repayment Settlement in the Condition Items section.

  2. Enter the Effective from date.

  3. Enter the frequency and the first calculation date.

Result

Interest is calculated for the incoming repayments according to the frequency you defined.

Example

Loan data:

  • Loan Amount 10 000.00 USD

  • Interest rate 0.5% per month

  • Interest payments monthly

  • Disbursement rate 100%

  • Monthly repayment installment 1 000.00 USD

  • Repayment settlement every 2 months

Resulting flows for the first 6 months:

Period

Repayment per period

Interest payment per period

Method for interest calculation

(Interest calculation capital * 5/1,000)

1. Month

1 000.00 USD

50.00 USD

10 000.00 USD * 5/1000

2. Month

1 000.00 USD

50.00 USD

10 000.00 USD * 5/1000

3. Month

1 000.00 USD

40.00 USD

8 000.00 USD * 5/1000

4. Month

1 000.00 USD

40.00 USD

8 000.00 USD * 5/1000

5. Month

1 000.00 USD

30.00 USD

6 000.00 USD * 5/1000

6. Month

1 000.00 USD

30.00 USD

6 000.00 USD * 5/1000