Setting up Interest Methods, Interest Days, and Principal and Interest

Setting up Interest Methods, Interest Days, and Principal and Interest

When you want to set up payments for a loan, the payment records have to be set up with a valid combination of the fields Interest Method, Interest Days, and Principal and Interest Type.  These fields are interdependent.  System field validation ensures that you select a valid combination of these fields. 

Note: If you import the payment records and do not set them up in the system, you will need to confirm the imported records contain the correct valid combinations.


 

Valid combinations of Interest Method and Interest Days and P and I Type.

INTEREST METHOD
 INTEREST DAYS
 P&I TYPE
 Arrears (2)
 None (0)
 Normal (0)
 Arrears (0)
 None (0)
 Principal Only (2)
 Arrears (0)
 Actual/360
 Normal (0)
 Advance (1)
 None (0)
 Normal (0)
 Advance (1)
 None (0)
 Principal Only (2)
 Interest Only (2)
 None (0)
 Normal (0)
 Interest Only (2)
 None (0)
 Interest Only (1)
 Interest Only (2)
 Actual/360
 Interest Only (1)
 Interest Only (2)
 Actual/Actual
 Interest Only (1)
 Daily/360 (3)
 None (0)
 Normal (0)
 Daily/Actual
 None (0)
 Normal (0)

 

In Servicing Director, these combinations should be set up in the following screens : 

 

For Interest Days and P&I Type make selections from the drop down lists in: 

  1. Customer Service Module
  2. Payment Screen

 

For Interest Method make selection in the Payment Change record in : 

  1. Customer Service Module
  2. Payment Screen
  3. Payment Change button
  4. Edit the Payment Change record, or create a new Payment Change record using appropriate Interest Method.

ArticleNumber:

000044620

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