Download Microfinance User Manual

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Par
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Par/Discount
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Par/Premium
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Par/Discount/Premium
Tenor Preferences
You can set the minimum and maximum tenor limits for a product. You can also specify a
standard or a default tenor.
Minimum Tenor
You can fix the minimum tenor of a product. The tenor of the loan account that involves the
product should be greater than or equal to the Minimum tenor that you specify.
Maximum Tenor
Likewise, you can also specify the maximum tenor for a product. The tenor of the loan accounts
that involve the product should be less than or equal to the Maximum tenor that you specify.
Default Tenor
The ‘default tenor’ is the tenor that is associated with a loan account involving this product. The
value captured here should be greater than the minimum tenor and less than the maximum tenor.
You can change the default tenor applied on a loan account during loan processing. However, the
new tenor should be within the minimum and maximum tenors maintained for the product.
Units
The tenor details that you specify for a product can be expressed in one of the following units:
 Days
 Months
 Year
Account Opening Installment Calculation Type
Account Opening Installment Calculation Type
The Account Opening Installment Calculation Type based on future rates can be:
 Single Installment: A single installment is computed using the future rates.
 Multiple Installments: Multiple EMIs are defined as per the future rates.
Payment in Advance
This check box indicates that the payment of interest and principal happens at the beginning of
the schedule. If you check this box, it indicates that payment in advance concept is applicable.
Otherwise, it will indicate an arrear.
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