Change interest rate
- Updated On 24 Jul 2020
- 1 Minute To Read
Mambu allows the interest rate to be changed at the account level for the following Loan Products:
- Revolving Credit Loans
- Dynamic Term Loans using the Declining Balance Equal Installment interest calculation method with either Standard or Balloon payment methods and all Pre-payment recalculations.
- Dynamic Term Loans using the Declining Balance interest calculation method and No Recalculation set as Pre-payment recalculation.
This functionality enables you to change (increase or decrease) interest rate on account level and helps you to be more client centric. The Edit Interest rate option is available in the More menu, where you can make these changes. This option is available for active (in arrears, active/in arrears) accounts only.
The change of interest rate can be done in the present moment, backdated, or in the future.
That the Interest Rate Changed transaction, is a non-financial transaction and therefore cannot be reversed.
For this reason, all backdated and current transactions will be visible in Transactions and Activity tabs.
You may change interest rates several times and the system will always take the last one. The future changes of interest rate will be visible on the effective date. After you change the interest rate, the effect on the schedule will be visible in the Schedule tab.
Change interest rate is not possible for the following situations:
- You cannot backdate change interest rate to at time before an existing repayment transaction.
- You cannot backdate change interest rate to a time before an existing interest applied transaction
If you have a question about how anything works or have come across something you haven't seen explained here, get in touch with our community of fellow users and Mambuvians where someone will lend a hand.
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