Certificate Rate of an Investment Order
Key Concepts
Certificate rate in an investment order is synonymous to the rate of interest in loan contracts and is defined in the investment product.
The investor signs a certificate to approve the rate of interest. This is certificate rate.
The certificate rate is the rate of interest an investor earns on the invested funds. If there are multiple investors on a loan, they are paid based on the certificate rate and their share of investment.
It is the percentage calculated on the amount that the investor has invested. A part of the amount the customer pays as interest, goes to the investor. This amount is the certificate rate amount.
When the interest rate in a loan contract changes, you can also change the certificate rate in the investment order.
When the certificate rate changes, the previous accrued interest amount is stored in a field called Inv_Interest_Posted_Amt__c (Investor Interest Posted Amount) and a new interest starts accruing that is stored in Inv_Accrued_Interest_Amt__c (Investor Accrued Interest Amount). The total interest accrued at any point in time is calculated as follows: Total interest accrued = Inv_Accrued_Interest_Amt__c + Inv_Interest_Posted_Amt__c.
Change the Certificate Rate
Prerequisites
Following are the prerequisites to change the certificate rate:
Enabling Fractionalization to see the Investors tab in CL Contract.
An Investment Order must be created.
Steps
Perform the following steps to change the certificate rate:
Login to your Salesforce account.
Click CL Contract.
Select the required CL Contract ID.
Click Investor.
Select the required Investment Order ID.
Click the drop-down arrow at the top right corner as shown in the following image:
Select Certificate Rate Change.
Note:The new certificate rate must be less than or equal to the interest rate of the contract.
A Certificate Rate Change page displays as per the investment product selected as follows:
When investment product does not have flexible rate schedules as shown in the following image:
Here, enter the New Certificate Rate.
When investment product has flexible rate schedules as shown in the following image:
Here, click on Edit to change the certificate rate for any or all rows of the Interest Rate Schedule.
Note:You can only change the certificate rate of a future start date.
Click Save.