Prepayment Penalty Scheme Function - Fields Description

At this function, user will come across various fields or columns that needs to be maintained with relevant data.

The descriptions of the respective field or column, are as follows:-

<Prepayment Penalty Scheme Search Criteria> (Panel)

Description

This is the name of the prepayment and prepayment penalty scheme code.

Status

This is the prepayment and prepayment penalty scheme status.

The available options, are as follows:

  • A - Active

  • I - Inactive

Note: Only prepayment and prepayment penalty scheme(s) that are in the 'A - Active' status will be made available for selection to be tagged to product.

<Prepayment Penalty Scheme Listing> (Panel)

Scheme Code

This is the code associated with the respective prepayment and prepayment penalty scheme.

Description

This is the name of the prepayment and prepayment penalty scheme code.

Scheme Type

This is to indicate the facility redemption or settlement type involved in the respective prepayment and prepayment penalty scheme.

Note: Presently, only the 'EPPTY - Full Redemption' option is available.

Status

This is the prepayment and prepayment penalty scheme status.

The options, are as follows:

  • A - Active

  • I - Inactive

Note: Only prepayment and prepayment penalty scheme(s) that are in the 'A - Active' status will be made available for selection to be tagged to product.
Prepayment Penalty Scheme Details (Panel)

Scheme Code

This is the code associated with the respective prepayment and prepayment penalty scheme.

Scheme Type

This is to indicate the facility redemption or settlement type involved in the respective prepayment and prepayment penalty scheme.

Note: Presently, only the 'EPPTY - Full Redemption' option is available.

Currency

This is the prepayment and prepayment penalty scheme’s currency code.

Note:

  • Presently, this is defaulted to the base currency of the country in which the bank or financial institution is operating.

  • The possible values that can be selected for this field is dependent on the currency that are being used for the transactions in the bank or financial institution.

Description

This is the name of the prepayment and prepayment penalty scheme code.

Status

This is the prepayment and prepayment penalty scheme status.

The available options, are as follows:

  • A - Active

  • I - Inactive

Note: Only prepayment and prepayment penalty scheme(s) that are in the 'A - Active' status will be made available for selection to be tagged to product.

Rebate%

This is the percentage of the remaining interest to be charged (for non-upfront interest charging facility), or earned (for upfront interest charging facility) on the unexpired facility period arising from the early settlement, that will be rebated during early settlement transaction. The applicable percentage value to be rebated is dependent on the policy of respective bank or financial institution.

Note: The default value in this field is 100%, however user can overwrite the field’s value.

Remarks

This is the additional information relating to a prepayment and prepayment penalty scheme (if any).

Interest In Lieu Of Notice (Panel)

For the case of early settlement, the 'Interest in lieu' of the redemption notice issued (which is usually valid for a certain period), is a calculation of interest charges within the redemption or settlement notice period, should the borrower still be holding onto the credit facility.

This fields in this panel will not be applicable, for upfront charging interest facility.

Notice Type

This is the measurement unit of the redemption notice period for the computation of the interest in lieu.

The available options, are as follows:

  • D - Day

  • M - Month

Notice Days/ Months

This is the redemption notice period, either in days or months, for the computation of the interest in lieu, e.g., 90 days or 3 months.

Note: The measurement unit of this field is dependent on the 'Notice Type' field’s value.

Penalty (Panel)

For the case of early settlement, this is the penalty interest, arising from the early settlement.

Charge if Pay Before This No. of Months

This is the credit facility bonding period (in months) of which penalty will be imposed, if the facility is to be settled earlier than this period.

Note: The value inputted must be more than '0'.

Start From

This is the inception point to compute the facility’s bonding period, for the computation of the penalty amount that will be imposed.

The available options, are as follows:

  • D - First Disbursement Date

  • P - Commencement Date (refers to the date that repayment of the respective credit facility has started)

Penalty Rate Type

This is the timing or method to charge the penalty, arising from the early settlement’s request of the respective credit facility.

The available options, are as follows:

  • A - Per Annum

  • F - Flat

  • M - Per Month

  • T - Fixed Amount

Penalty Rate/ Amount

This is the rate that will be charged for the penalty.

Note: The value inputted must be more than '0.00000'.

Charge On

This is the type of base amount to be used to compute the penalty.

The available options, are as follows:

  • 1 - Original Approved Amount

  • 2 - Principal Outstanding

Charge If Prepay Amt.>= % Remaining Principal

This is the percentage value of the respective credit facility’s remaining principal outstanding amount of which, if it has been either, the same amount as the early settlement amount, or exceeded by the early settlement amount, where penalty will be imposed, e.g., 30%.