Enabling Floating Rate

Defining Loan product - Floating rate 

Go to Admin>>Product>>Loan Product>> Create Loan products 

Provide all the necessary fields for creating a Loan product, refer Loan Product Fields

Step I

Go to the Term section and update fields respectively :-   

1 - Is Linked to Floating Interest Rates: Check the check box, to enable floating rates and to define. 

2 - Select Floating rate chart: Select floating rate chart. You can floating rate chart from here:- Floating Rate

3 - Interest rate field: Provide interest rate. Note this provided interest will be add on to the selected rate chart. 

4 - Is floating calculation allowed: Check the check box, to enable floating calculation. If this is unchecked it will consider the flat rate i.e the disbursement date rate and it will remain same for throughout the instalments. For example please refer:- How to provide floating rates 

5 - Minimum Floating interest rate allowed field: Provide minimum floating interest rate allowed. 

6 - Default Floating interest rate allowed field: Provide default floating interest rate. 

7 - Maximum Floating interest rate allowed field: Provide maximum floating rate allowed. 

Then define other required fields like Principal, No. of Instalments and Repaid every.  

Step II

Go to the Settings section and update mandatory fields respectively :-   

8 - Interest Method - Must Be Declining balance, in either to floating interest rate. 

9 - Calculate interest for exact days in partial period -  Must be checked box in either to use floating rate. 

Step III

Go to the Interest Recalculation section and update mandatory fields respectively :-  

 10 - Recalculate Interest - Must be enabled by checking the check box, in either to use Floating rate. 

Then define other required fields for interest recalculations. Refer - Loan Products#InterestRecalculation   

Step IV 

Once you are done with updating all the necessary fields which are required for creating loan product,then click on Submit button.  

Viewing of Loan Product - Floating rate

Go to Admin>>Product>>Loan Product>>Lists of created loan product are displayed>>Select required product to view as shown below format. 

Screen shot 1 - An defined example of a Loan product with Floating rate, without accounting enabled. 

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