Accrual Start Basis
Accrual start basis is used to arrive at the Accrual Start Date of a Lending product, after a successful Loan Disbursal Transaction.
If the Accrual Start Basis is Contract Date, then the Accrual Start Date is set to the Contract Date (by adding the accrual start days, if any). But, if the Accrual Start Basis is Disbursal Date, then the Accrual Start Date is set to the Disbursal Transaction Date (by adding the accrual start days, if any).
This can be summarized with the help of the table given below:
| Accrual Start Basis | Accrual Start Date after disbursal |
|---|---|
| A. Contract Date | Same as the Contract Date |
| B. Disbursal Date | Same as the Disbursal Transaction date |
Now, let us look at the following sections to understand Accrual Start Basis:
A. Contract date
Suppose you create a lending product, with Contract Date as the Accrual Start Basis.
Create a loan application, with the Contract Date as 12/5/2013 (December 5, 2013).
Now, if you disburse the loan, you can see that the requested disbursal amount is disbursed and the transaction has been cleared.
As Contract date is the Accrual Start Basis, on successful disbursal of the loan, the Accrual Start Date is also set as 12/5/2013 (December 5, 2013) which is same as the Contract Date.
B. Disbursal date
Suppose you create a lending product, with Disbursal Date as the Accrual Start Basis.
Create a loan application with the Contract Date as 12/14/2013 (December 14, 2013).
Now, if you disburse the loan on 12/16/2013, you can see that the requested disbursal amount is disbursed on December 16, and the transaction has been cleared.
As Disbursal date is the Accrual Start Basis, on successful disbursal of the loan, the Accrual Start Date is set to the Disbursal date (12/16/2013).