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:

1. Login to your Salesforce account.

2. Click CL Contract.

3. Select the required CL Contract ID.

4. Click Investor.

5. Select the required Investment Order ID.

6. Click the drop-down arrow at the top right corner as shown in the following image:

   

7. Select Certificate Rate Change.

   Note:

   The new certificate rate must be less than or equal to the interest rate of the contract.

8. A Certificate Rate Change page displays as per the investment product selected as follows:

   1. When investment product does not have flexible rate schedules as shown in the following image:

      

      Here, enter the New Certificate Rate.

   2. 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.

9. Click Save.