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Any number of floating rate schemes can be created. But they would fall under the one of the 3 types explained below. An example illustration is given far down below.
Base Lending Rate
- This is a unique floating rate scheme identified by isBaseLendingRate attribute
- There can be only one Base Lending Rate for an organisation at any given time
- Will have its own period and interest definition
- Loan Products that wants to re-use Base Lending Rate periods with only a differential rate added on top of it should link to this type of scheme
Differential to Base Lending Rate
- Floating rate scheme dependent on Base Lending Rate
- Can define its own Floating rate periods (independent of Base Lending Rate)
- Interest rate specified is differential of Base Lending Rate as of start date of the given period (attribute ratePeriod.isDifferentialToBaseLendingRate will be true)
- Cannot exist without a Base Lending Rate already defined
- Loan Products that wants to use a differential rate on top of prevailing Base Lending Rate but with their own time periods should link to this type of scheme
Independent Floating Lending Rate
- Floating interest rate scheme with own rate and period
- Not dependent on Base Lending Rate
- floatingRate.isBaseLendingRate and ratePeriod.isDifferentialToBaseLendingRate attributes will be false
- Loan Products that wants to define an independent floating rate and time periods should link to this type of scheme
UI Screens
- New Button under "Admin > Products" by name "Floating Interest Rates"
- New screen that lists all the "Floating Interest Rates" schemes along with "Create" button.
- New screen to Create Floating Interest Rate
- New Screen to View Interest Rate and Applicable Periods along with "Edit" button
- New Screen to Edit Floating Interest Rate
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Loan Product Differential Rate
(A) | Loan Application Differential Rate
(B) | Date
(C) | Base Lending Rate in % (Rates defined as part of "Base Lending Rate type") (D) | Floating Interest Rate (Loan product Linked to "Base Lending Rate") (E)=(A)+(B)+(D as of date) | Differential to Base Lending Rate % (Rates defined as part of "Differential to Base Lending Rate type") (F) | Floating Interest Rate (Loan product Linked to "Differential to Base Lending Rate type") (G)=(F)+(E as of the period start date) |
| 2 | 1 | 01-10-2010 | 8 | 11 | 2 | 13 |
| 10-10-2010 | ||||||
| 16-10-2010 | 9 | 12 | ||||
| 31-10-2010 | 7 | 10 | 1 | 11 | ||
| 10-11-2010 | 2 | 12 | ||||
| 15-11-2010 | 6 | 9 | ||||
| 30-11-2010 | 8 | 11 |