Rate cards
A rate card is a chart or a document that lending organizations maintain for pricing loans. By defining different combinations of the financed amount and the term of the application, you can specify different rates at which your organization will offer a loan. A rate factor or interest amount is defined for each variation to determine the financed amount. A rate card may be associated with a company or a CL product (by enabling the use of CL product in Q2 Origination org parameters), but not both. On a given date, only one rate card is effective for a given CL product or company. You use rate cards for generating quick quotes and for generating pricing for an approved application. For example, for a loan amount between $10,000 to $100,000, for 12 months, to be paid monthly, and for a customer with a credit grade of A, you may offer an interest rate of 10%. Based on a different set of values for these parameters, you may offer a different interest rate.
The table given below shows a sample loan rate card:
| Term | Payment Frequency | Min Financed Amount | Max Financed Amount | Rate Factor | Payment Amount for a Purchase of $1,500 | Payment Amount for a Purchase of $1,500 |
|---|---|---|---|---|---|---|
12 |
Monthly | $1,000 |
$2,999 |
0.07645 |
$114.68 |
$748.50 |
24 |
Monthly | $3,000 |
$500,000 |
0.04305 |
$64.58 |
$399.50 |
Q2 Origination allows you to configure the rate cards as per your requirements, in just in few simple steps as described inRate cards configuration section. If your organization's requirements are more complex having multiple pricing methods, additional determining factors that can lead to a bulk of rate cards and rate records, then you can use the Rule based rate cards configuration feature to manage rate cards efficiently.