Rate Basis
Select the Rate Basis for default interest, the options are;
- Premium Rate will charge default interest above the interest rate, e.g. if the interest rate is 12% and the default rate is 10% premium, Default Interest will be charged at 10%.
- Fixed Rate will charge the default interest on the difference between the default rate and the normal interest rate for the account, e.g. if the interest rate is 20% and the default rate is 25%, default interest will be charged at 5%.
- Plus Rate will charge default interest at a rate calculated as the interest rate plus the Plus Rate, e.g. if the interest rate is 12% and the default rate is 10% Plus Rate, Default Interest will be charged at 22%.
| Premium Rate | Fixed Rate | Plus Rate | |
|---|---|---|---|
| Interest Rate | 12% | 20% | 12% |
| Default Rate | 10% | 25% | 10% |
| Default Rate charged | 10% | 5% | 22% |
Payments In Advance?
Check to define if payments are at the beginning of the payment period.
Include Regular with Balloon Payment?
Check to define if balloon payment is to be added to the final instalment.
Interest on Interest?
Check if Interest is to be charged on outstanding Interest.
Payment Allocation
It will default the Payment Allocation from the Account Type, Payments page. Click here for an explanation on each of the different Allocation types.