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Manage penalty

Find applied penalty

When a penalty is applied to a product, the loan contracts are created according to the loan product settings.

Loans > Search > Contracts.
Fill in the search parameters > Search.
Click the Contract number to view the contract details.
On the contract details page, scroll to the Components section.

In the given example, the interest penalty (INT_P) equals interest (INT). Since the sum of the (penalty margin + penalty base rate) is less than the interest rate, the system uses the higher value to calculate the penalty.

Increase/Decrease contract margin

You can change the loan contract margin by creating a new contract version.

To do that:

Click the New contract version button > Select Change interest rate for the Contract change type.
Enter New margin rate.

Fill in other parameters > Save.

When a new contract version is created, the contract penalty is recalculated with a higher of two values - the contract interest rate or penalty margin + penalty base rate.

Examples

We will review two examples of the contract margin increasing and decreasing. The original values are the following:

Interest margin rate = 8.
Interest rate = margin rate + base rate = 8 + 3.5 = 11.5.

In the first example, we change the interest margin rate to 12:

The interest rate recalculates = 12 + 3.5 = 15.5
The interest penalty (INT_P) value updates = 15.5 As the sum of (penalty margin + penalty base rate) = (5 + 9.5) = 14.5 And 14.5 < 15.5

In the second example, we change the interest margin rate to 6:

The interest rate recalculates = 6 + 3.5 = 9.5
The interest penalty (INT_P) value updates = 14.5 As the sum of (penalty margin + penalty base rate) = (5 + 9.5) = 14.5 > 9.5