Equation Equation Lending Repayment Calculator (CX008) Enhancement Notes

CX00112 0

!ll rights reser"ed# No part o$ this document may %e transmitted& reproduced or stored in any retrie"al system o$ any nature in any $orm or %y any means 'hether digital& electronic& mechanical or other'ise& 'ithout the prior 'ritten permission o$ (isys )nternational *an+ing ,ystems Ltd& to 'hich application $or such permission should %e addressed# )ssued- 200 .ocument )./0ersion- CX00112 0#doc /1 1his manual applies to "ersion 2#8 o$ Equation and all su%sequent "ersions and modi$ication le"els unless other'ise indicated in ne' editions# 1his document may not re$lect the total system capa%ility at any particular time# )t is also possi%le that this document may contain re$erences to $acilities that are not a"aila%le on your computer system# ,uch re$erences must not %e construed to mean that these $acilities 'ill necessarily %e made a"aila%le on all types o$ computer system or in all locations# 1his pu%lication may %e su%3ect to modi$ication and may contain technical inaccuracies or typographical errors# 1his document may contain e4amples o$ data and reports used in normal %an+ing operations# 1o illustrate them as completely as possi%le& the e4amples include the names o$ indi"iduals& companies and %an+s# !part $rom some genuine %an+ names these names are $ictitious and any similarity to the names and addresses o$ any indi"iduals or companies is coincidental# None o$ the deals or transactions sho'n relate to real deals 'hich these or other %an+s may ha"e transacted# 1o ena%le later editions o$ this manual to pro"ide impro"ed in$ormation 'e 'elcome your "ie's# 5lease address your comments to your local (isys )nternational *an+ing ,ystems Ltd o$$ice# (idas is a registered trademar+ o$ (isys )nternational *an+ing ,ystems Ltd# (icroso$t& (, .6,& 0isual *asic and 6pen .ata%ase Connecti"ity are registered trademar+s& and 7indo's& 7indo's N1 and 7indo's 2000 are trademar+s& o$ (icroso$t Corporation# )*(& i,eries and .*2 are trademar+s o$& and (ER0!/2 is copyright o$& )nternational *usiness (achines Corporation# 8!X ,r is a registered trademar+ o$ 6mtool# 8ileNE1 is a registered trademar+ and 5anagon is a trademar+ o$ 8ileNE1 Corp# )ntel is a registered trademar+ o$ )ntel Corporation# Crystal Reports $or 7indo's is a trademar+ o$ ,eagate ,o$t'are )nc# or one o$ its su%sidiaries# )nstall,hield is a registered trademar+ o$ )nstall,hield Corporation# 6R8 is the 6ptical Reporting 8acility system $rom (isys )nternational *an+ing ,ystems Ltd# 1he main component o$ 6R8 is the ,tor/9( ,ystem 'hich is a copyright o$ (icro%an+ ,o$t'are& )nc# Citri4& )C!& 5rogram Neigh%orhood& and (eta8rame are trademar+s o$ Citri4 ,ystems& )nc ,ome o$ the illustrations included in this manual may ha"e %een created using clipart supplied %y Corel Corporation 'ith Corel.R!7 #0# ,#7#)#8#1# is a registered trademar+ o$ ,#7#)#8#1# s#c#

Copyright : (isys )nternational *an+ing ,ystems Ltd& 200

Preface

1his document descri%es the ne' $unctionality pro"ided to Equation Lending to allo' your %an+ to calculate ;'hat i$; scenarios $or customers 'ithout actually opening a deal or loan# 1his enhancement is compati%le 'ith Equation 2#8 and su%sequent "ersions ! compati%le "ersion o$ the Equation Lending application must also %e installed#

Equation Equation Lending Repayment Calculator Enquiry

2005

Contents

5re$ace#################################################################################################################################################### i Contents################################################################################################################################################ iii Chapter 1 )ntroduction############################################################################################################################ 1 (anagement 6"er"ie'############################################################################################################# 1 Chapter 2 Enquiry 8unctions################################################################################################################## 2 Loan Repayment Calculator Enquiry######################################################################################### 2 )nde4#################################################################################################################################################### 1<

Equation Equation Lending Repayment Calculator Enquiry

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Chapter 1 Introduction

1his enhancement allo's your %an+ see pre=generated repayment schedules o$ loans through an enquiry $unction# 1he customer $or 'hom these scenarios are generated need not already e4ist in Equation#

Management Overview
7ith this enhancement installed& once the repayment schedule has %een generated it is possi%le to recalculate the schedule %ased upon Change o$ schedule instructions = change to repayment $requency& repayment amounts& dates& etc# as $or the e4isting $unction (aintain >enerated ,chedules ((>,) )nterest rate changes 5rincipal increases !n e4isting loan re$erence may also %e entered to create a ne' illustrati"e repayment schedule# 1he repayment calculator enquiry can only %e used $or automatically calculated schedules (loan types $or 'hich ,chedule recalculation is set to 2)# )t cannot %e used $or any type o$ manual schedules#

Equation Equation Lending Repayment Calculator Enquiry

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Chapter 2 Enquiry Functions

1he Loan Repayment Calculator Enquiry (RCE) $unction is supplied to allo' customers to see the di$$erent scenarios o$ pre=generated repayment schedules $or loans 'hich may or may not e4ist in Equation#

Loan epayment Ca!cu!ator Enquiry

*asic in$ormation a%out a loan must %e entered $or the Loan Repayment Calculator Enquiry (RCE) to %e a%le to generate ne' repayment schedules# 1he +ey screen $or the ne' enquiry requests the $ollo'ing $ields-

Loan "ype

Retail loan type mnemonic used to determine the characteristics o$ a loan# 1he loan type may %e any loan type supported %y Equation Lending& including discount loans 'here the discount is calculated on the reducing scheduled %alance& %ut the loan type must ha"e #chedu!e reca!cu!ation set to 2#

Loan eference

)$ the schedule is to %e calculated $or an e4isting loan& the unique re$erence num%er associated 'ith that loan# )$ the calculation is $or a ne' loan& this $ield must %e le$t %lan+# )$ the loan entered has already %een 'ritten o$$ or $ully repaid& an error message 'ill appear#

$ranch

! mnemonic o$ up to $our characters that identi$ies a speci$ic %ranch# 1he de$ault is the user;s de$ault %ranch#

Customer

1he customer mnemonic# )$ the customer is not an e4isting Equation customer this $ield must %e le$t %lan+#

Equation Equation Lending Repayment Calculator Enquiry

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)$ the loan does not already e4ist in Equation then the $ollo'ing screen 'ill %e displayed to allo' the %asic loan schedule characteristics to %e de$ined# 7here the loan already e4ists this screen 'ill not %e displayed? the loan schedule details 'ill %e de$aulted $rom the details already held#

Currency %mount

1he currency o$ the loan# 1he amount o$ the loan# 1his must %e greater than 0 and %et'een the Ma&imum amount and Minimum amount de$ined $or the loan type# 1he date on 'hich the loan starts# )$ the "alue entered is- not a %usiness day $or the currency? %e$ore the %ac+ "alue limit date? or a$ter the $or'ard "alue limit date& an error message 'ill appear# 1he de$ault is today;s date#

#tart date

Interest days 'asis

1his controls the num%er o$ days used in the $ormula 'hen calculating the loan interest# 1he options are( 1 2 ) * + !ctual days di"ided %y 2@< !ctual days di"ided %y 2@0 !ctual days di"ided %y 2@<& or %y 2@@ i$ in a leap year !ll months are treated as 20 days and di"ided %y 2@0 !ll months are treated as 20 days and di"ided %y 2@< !ll months are treated as 20 days and di"ided %y 2@<& or %y 2@@ i$ in a leap year

1he de$ault "alue is that speci$ied on the loan type& the account type or the currency& in that order o$ pre$erence# Interest frequency 1he Interest frequency $ield and associated ,e&t interest date $ield allo' you to de$ine 'hen interest is to %e paid#

Equation Equation Lending Repayment Calculator Enquiry

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Chapter 2 Enquiry Function !ny "alue entered must %e a "alid $requency code& ho'e"er a "alue o$ A ($or daily repayments) is not allo'ed# 1he ne4t interest date is automatically calculated $rom the $requency# )$ the loan account type does not ha"e the )nterest to .ue .ate (,C1<2) special condition set on& Equation 'ill ad3ust the date to the ne4t %usiness day# 6ther'ise& the date 'ill not %e ad3usted = i$ the ne4t cycle date $alls on a non= %usiness day& a 'arning message 'ill appear# Bou can press F+ to display the calculated ne4t interest cycle date and the e4panded $requency description# !lternati"ely& i$ a speci$ic ne4t interest posting date is required& you can enter the date manually# 1he date you enter must %e a$ter the loan start date and on or %e$ore the maturity date# 1hese $ields are not displayed $or a constant repayment loan? instead& the $requency and ne4t date are set automatically $rom the epayment frequency and First repayment date on the ne4t screen# %ctua! rate 1he rate at 'hich interest is to %e calculated# 1his rate can %e 0& %ut must %e %et'een or equal to any Ma&imum rate and Minimum rate de$ined on the loan type# )$ it is not& an error 'ill appear# )$ the $ase-diff-margin $ield has no "alue this $ield must %e de$ined# $ase-diff-margin 1he rate at 'hich interest is to %e calculated# Bou may not enter "alues in %oth this $ield and the %ctua! rate $ield# !ny com%ination o$ %ase/di$$/margin is a"aila%le& %ut i$ a margin rate is entered a %ase rate must also %e input& other'ise a 'arning message 'ill appear# 8or a constant repayment loan& a ma4imum interest rate o$ 1&000C can %e speci$ied# )$ a Ma&imum rate and Minimum rate ha"e %een de$ined on either the retail loan type or on the loan itsel$& the deri"ed rate must %e %et'een those t'o rates# )$ it isn;t& a 'arning message is displayed# 1hese $ields are not displayed i$ the retail loan type has the Interest rate type set to 2 (actual rate). 1he de$ault %ase/di$$/margin "alues de$ault $rom those de$ined on the loan type# epayment frequency 1his is the $requency $or repayments o$ principal& and is used 'ith the associated First repayment date fie!d and the Interest frequency $ield to generate a repayment schedule# !ny "alue you enter must %e a "alid $requency code& ho'e"er $requency code o$ ! ($or daily repayments) is not allo'ed# 1he de$ault "alue 'ill %e that on the retail loan type& i$ it 'as speci$ied# )$ you change these de$ault "alues& a 'arning message 'ill appear#

Equation Lending Repayment Calculator Enquiry

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Chapter 2 Enquiry Function 1he date o$ the $irst repayment 'ill %e calculated as either a "alue deri"ed $rom the epayment frequency and #tart date& i$ the epayment frequency has %een speci$ied and the loan is contingent (the start date is in the $uture)# a "alue deri"ed $rom the epayment frequency and today;s date& i$ the epayment frequency has %een speci$ied and the loan is non=contingent (the start date is in the past or today) the Maturity date& i$ the Repayment $requency has not %een de$ined 1he date o$ the $irst repayment may also %e entered manually& in 'hich case it must not %e %e$ore the #chedu!e from date& and must not %e a$ter the Maturity date& i$ entered# ,o. of repayments 1he num%er o$ repayments $or the loan# 1his num%er must %e greater than 0# )$ a "alue is entered& the Maturity date 'ill %e calculated automatically# 1he num%er o$ repayments 'ill de$ault to that on the loan type& i$ speci$ied# 6ther'ise the "alue 'ill %e calculated $rom the Loan amount& epayment frequency& epayment amount and First amount# 8or loans 'here a epayment frequency has %een speci$ied& First repayment date 'ill de$ault to the $irst repayment date that occurs on a %usiness day# 6n loans other than constant repayment loans& interest 'ill continue to %e charged %e$ore the $irst payment date according to the interest $requency# Maturity date 1his should %e entered i$ the maturity date o$ the loan is already +no'n and is $i4ed# 1his "alue should %e %et'een any ma4imum and minimum terms speci$ied on the retail loan type& and must correspond to the repayment $requency# )$ le$t %lan+& this $ield de$aults to the "alue calculated $rom the ,um'er of repayments& epayment frequency and First repayment date. epayment amount ! repayment "alue in the currency o$ the loan may %e entered# 1his should %e either the 'hole amount to %e repaid as a single scheduled repayment i$ the loan is %eing repaid in one instalment& or a standard amount that is required 'hen generating a series o$ scheduled repayments 1he last repayment 'ill %e ad3usted i$ necessary to ta+e account o$ the rounding o$ payment amounts# )$ this $ield is le$t %lan+& the amount o$ each repayment 'ill %e automatically calculated $rom the epayment frequency and First repayment date& plus either the Maturity date or the ,um'er of repayments# 8or capitalising loans& the user is recommended to enter a "alue $or the repayments# Lea"ing this $ield %lan+ to %e " Equation Lending Repayment Calculator Enquiry 2005

Chapter 2 Enquiry Function calculated automatically may not produce the required repayment schedules# First amount Enter the "alue o$ the $irst repayment here# )$ you lea"e this $ield %lan+& the $irst repayment amount 'ill %e the same as the regular repayment amount# 1he regular repayment amount 'ill %e ad3usted to ta+e into account any irregular interest during the $irst period& resulting $rom 1he $irst period o$ the loan %eing shorter than normal %ecause the loan does not start on an interest $requency date Rate or principal changes during the li$e o$ a loan 'hich do not $all on an e4act interest $requency date )nterest ad3ustments due to %ac+ "alued rate or principal changes 1his has the e$$ect o$ spreading the repayment o$ the non= standard interest o"er the remaining li$e o$ the loan# First amount can differ 1his $ield de$ines ho' you 'ant the constant repayment schedule to %e a$$ected %y irregular interest amounts on the $irst payment date $ollo'ing the loan start or loan maintenance# / 1he $irst repayment 'ill %e ad3usted %y the di$$erence %et'een the actual interest calculated and the regular interest 'hich 'ould ha"e %een calculated $or a normal period# 1he $irst repayment amount 'ill %e the same as the constant repayment amount# (Do'e"er the constant repayment amount 'ill %e ad3usted to ta+e into account the irregular interest during the $irst period# 1his spreads the repayment o$ the non=standard interest o"er the remaining li$e o$ the loan)

Equation Lending Repayment Calculator Enquiry

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Chapter 2 Enquiry Function

!ll o$ the $ollo'ing $ields are optional%ddress Enter up to $i"e lines o$ name and address details# 1hese 'ill %e printed on the schedule ad"ice# 1his $ield de$aults to the customer address i$ it e4ists# Charges Charges can %e entered as part o$ the loan start instructions# !n e4isting charge code and a charge amount must %oth %e entered# Bou can only enter one=o$$ and amortising charge types? accrued and recurring charge types 'ill not %e accepted# Charges 'ill %e calculated automatically 'hen you enter a loan i$ your system has indicator 12 set on $or the $eal %undry %election (C%) parameters# ,ee the #tatic 0ata #et1up and Maintenance 2ser 3uide $or details# Ep to three charges can %e automatically calculated on the retail loan# 1hese charges must ha"e %een speci$ied using the %dd 0ea! Charge Component 4%0C5 $unction# )$ the loan e4ists& the charge amounts "alue 'ill %e ta+en $rom the retail loan and 'ill %e protected# Event 1his $ield 'ill only %e displayed i$ F <1 Enhanced 8ees and Charges is installed# )t indicates the E"ent to %e used %y the Enhanced 8ees and Charges module# 1his $ield 'ill normally %e set to RL& (the supplied option mnemonic $or &dd Retail Loan)# 7here the *an+ ha"e de$ined other options $or &dd Retail Loan it is possi%le that di$$erent charges could %e de$ined $or these other options# Channe! 1his $ield 'ill only %e displayed i$ F <1 Enhanced 8ees and Charges is installed# Normally the channel to %e used %y the Enhanced 8ees and Charges module 'ill %e ta+en $rom the channel speci$ied on the userGs de$ault %ranch#

'

Equation Lending Repayment Calculator Enquiry

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Chapter 2 Enquiry Function 1he "alue o$ this $ield may %e changed to any e4isting Equation channel code# )$ the F <1 Enhanced 8ees and Charges enhancement is installed& then you 'ill %e presented 'ith a screen sho'ing the de$ault charges H &dd E(ent Charge (&C))#

8or details o$ the $unctionality pro"ided %y this screen please re$er to the Enhanced Fee and Charge Enhancement *ote # )$ 1 is used to select the details a screen 'ill %e displayed sho'ing details o$ the charge calculation#

1his screen sho's the de$ault charges# None o$ these can %e amended#

Equation Lending Repayment Calculator Enquiry

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Chapter 2 Enquiry Function 6n pressing Enter $rom the repayment calculator or F1' $rom the &dd E(ent Charge screen you 'ill %e presented 'ith generated schedules#

7here the Event charges $rom the Enhanced 8ees and Charges enhancement are speci$ied to %e pro3ected these 'ill %e displayed 'ith the schedule and 'ill %e printed on the %chedule &d(ice# 1he %chedule &d(ice may %e printed using the F1" $unction +ey#

%P

!nnualised percentage rate

!lternati"ely& changes may %e made to the schedule instructions& interest rates or principal#

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Equation Lending Repayment Calculator Enquiry

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Chapter 2 Enquiry Function 5ressing the F" $unction +ey ena%les the creation o$ a ne' repayment schedule on a date speci$ied# ! pop=up screen appears requesting the date $or the ne' instruction#

1his is the same as maintain an e4isting schedule using the ,aintain )enerated %chedule (,)%) $unction#

1he $ollo'ing display=only $ields sho' in$ormation a%out the repayment schedule 'hich has resulted $rom your instructions# 1hey are recalculated 'hen you press Enter a$ter ha"ing made changes to the input $ields# !ll the "alues sho'n assume that the repayment schedule instruction on the screen 'ill continue to %e in e$$ect until the loan is $inally repaid#

Equation Lending Repayment Calculator Enquiry

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Chapter 2 Enquiry Function

Mature epayments epayment First Last ate this schedu!e %P

1he maturity date that has %een calculated $or the loan# 1he num%er o$ payments that ha"e %een scheduled to repay the loan# 1he repayment amount that has %een calculated $or the repayment schedule sho'n# 1he repayment amount on the $irst payment date o$ the schedule sho'n& 'hich may di$$er $rom the regular repayment amount# 1he repayment amount on the last payment date o$ the schedule sho'n& 'hich may di$$er $rom the regular repayment amount# 1he interest rate at 'hich the repayment amount 'as calculated# (1his is the interest rate in e$$ect at the start o$ the schedule $rom date = it is not a$$ected %y any rate changes on that date)# 1he annualised equi"alent o$ the rate& ta+ing the num%er o$ payments per year into account# 1his e4cludes penalty interest# )$ the !5R you enter is greater than the permitted ma4imum !5R& Equation 'ill automatically reset this $ield to the ma4imum amount#

!$ter you ha"e made your changes& press Enter to see the e$$ect on the repayment schedule# 1he e4isting rate used $or the loan may %e changed using the F1+ $unction +ey# !s the %ctua! rate and $ase-diff-margin $ields are mutually e4clusi"e& i$ the loan type selected has a de$ault "alue on either $ield then the other 'ill %e protected# 6nce an interest change has %een added 1 may %e used to select the ate change and maintain the interest rate& or the change may %e deleted %y pressing F22# Bou cannot ma+e real interest rate changes to an e4isting loan $rom this screen ! pop=up screen 'ill appear#

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Equation Lending Repayment Calculator Enquiry

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Chapter 2 Enquiry Function Bou may then change the interest rate in the same 'ay as you 'ould maintain an e4isting rate using the ,aintain Loan -ntere t Rate (,L-) $unction# 5ress Enter to recalculate the repayment schedule using the ne' "alues# 7hether %oth %ctua! rate and $ase-diff-margin are displayed 'ill depend upon the "alue o$ the ate type $ield set $or that particular loan type# )ncreasing the principal amount o$ the loan may %e achie"ed %y pressing F20# 6nce a principal increase has %een added 1 may %e used to select the Principa! increase and maintain the amount& or the change may %e deleted %y pressing 822# Bou cannot add a real principal increase to an e4isting loan $rom this screen

Bou may then increase the principle in the same 'ay as you 'ould increase the amount o$ an e4isting loan using the &dd .rinciple -ncrea e (R.-) $unction# 5ress Enter to recalculate the repayment schedule using the ne' "alues#

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Inde&

!dd 5rincipal )ncrease (R5))################################################################################################################################### 12 Charges################################################################################################################################################################# 8& I (aintain >enerated ,chedules ((>,)################################################################################################################### 11 (aintain Loan )nterest Rate ((L))########################################################################################################################### 12

Equation Lending Repayment Calculator Enquiry

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