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The amounts and dates for the payouts and repayments are presented in the payment plan.
Figure 1: Repayment plan for an annuity loan
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- Net lending amount/payouts
The net lending amount represents the total funding amount which is made up of all the payouts. This includes one-off payments such as the normal loan disbursement as well as in-house and third-party discharges, insurance premiums etc. In addition, regular payouts can also be included.
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- Interest rate agreements
The loan calculator can calculate the amount of interest on the basis of fixed or variable-rate interest agreements. In this case, various day count conventions, business day conventions/public holiday calendars and payment agreements are taken into account. Usually only one fixed-rate interest agreement for the entire repayment term exists for consumer loans. In this case, a nominal or effective interest rate can be defined for the calculation of a loan and the value missing in each case is determined. Sales are driven by effective interest rates particularly in the consumer lending business.
FlexFinance provides various options for determining interest rates. This ranges from the simple, flexible manual entry of interest rates, predefinition in the catalogue of products and conditions, to the fully automatic determination of a fair target condition specific to the situation and the customer (see Interest Conditions). Variable interest rate agreements are also possible.
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