Generate Loan Pricing Manually

  • Updated

On the Pricing page, you can define the type of interest rate and generate the interest rate for the loan application.

Prerequisites

To generate pricing manually, ensure that the following prerequisites are met:

  • The Pricing Method should be selected as Manual for the lending product.

  • An application is created for the above-mentioned lending product, and the Pricing Method is selected as Manual.

Steps

To generate loan pricing manually:

  1. Log in to your Salesforce account.

  2. Go to image idm3559 (App Launcher) > Applications.

  3. On the Applications tab, and from the list of applications, select the required application.

  4. On the application details page, select Pricing.

    The Pricing page is displayed with the sections Fees, Interest, and Payment Schedule.

  5. Select Interest and provide the details as described in the following table, and then select Save:

    Field Name

    Action and Information

    Interest Rate Type

    Select the type of interest.

    Supported Options:

    • Fixed

    • Floating

    • Rate Schedule

    Interest Rate Type = Fixed

    Index Linked

    This checkbox is applicable for the Fixed interest rate type. If this checkbox is selected, specify values for the Interest Index, Base Rate, Margin, Spread fields.

    Interest Rate Type = Fixed, Floating

    Interest Index

    Select the interest index from the configured interest index.

    Base Rate

    This field auto-populates with the base rate of the selected interest index.

    Margin

    This is the manual rate adjustment that is performed on the application.

    Spread

    Specify a spread on the base rate.

    Interest Rate

    = Base Rate+ Spread + Margin.

    This field auto-populates and is non-editable if the Interest Rate Type is Floating or the Index Linked checkbox is selected for the Fixed Interest Rate Type.

    This is the final interest rate that applies on the application that a borrower needs to pay with the borrowed amount.

    Interest Rate Type = Floating

    Rate Ceiling

    Specify the maximum interest rate to be applied on a loan application.

    Rate Floor

    Specify the minimum interest rate to be applied on a loan application.

    Rate Revision Frequency

    Select the frequency at which the index rate needs to be reevaluated for the application.

    Supported Options:

    • Daily

    • Monthly

    • Quarterly

    • Semi-Annual

    • Annual

    Rate Lock

    This field specifies whether the rate of the first-rate schedule on the application is locked or not.

    Interest Rate Type = Rate Schedule