Loan pricing

Loan pricing is the process of determining the interest rate for lending a loan, typically as an interest spread (margin) over the base rate, that the borrower must pay in addition to the borrowed amount. A loan price may be separated into two components: the interest rate and the fees.

In Q2 Origination, it is possible to define multiple interests and fees. That is, you can specify the interest and fee that you would like to levy at the different events in the life cycle of a loan.

A lending organization may configure different pricing options for each lending product based on the type of funding, interest rate, the urgency of use, and the finance amount. All these are usually defined through rate cards. In Q2 Origination, one application can have many pricing details. Each pricing detail represents the available lending option for the applicant from the rate card for a given lending product.

You can consider the Rate cards as a ready reckoner that organizations use for offering pricing options to applicants.

Pricing with payment amount

In the existing functionality, a batch job generates schedules for each pricing and assigns payment amounts. With the new functionality, a formula is now used to calculate the payment amount for each pricing instead.

To enable the formula based payment amount calculation, perform the following steps:

1. Log in to your Salesforce account.

2. Go to (Setup) > Setup.

3. In the Quick Find box, search for Custom Settings and select it.

4. Select Org Parameters with the namespace prefix (genesis or org namespace), and select Manage.

5. Select Edit, and then select the Generate Pricing with Payment Amount checkbox.

6. Select Save.

   Note:

   From August 2024 release, the Generate Pricing with Payment Amount Org Parameter is enabled by default for new installations .However for the upgrades, it remains disabled by default.