How To Model An Amortizing Loan That Has An Initial Non Amortizing Period (Doc ID 431840.1)

Last updated on MAY 17, 2007

Applies to:

Oracle Risk Manager - Version: 4.5.38.1
Information in this document applies to any platform.
Oracle Financial Services Applications (OFSA)

Goal

Question 1:

For the following loan type:

The total duration of the loan is 12 years and it is based on a Administered Rate(ADJUSTABLE_TYPE_CD = 30) during all those years.

For the first 2 years, the customer will pay only interest (so it behaves as a non amortizing for
this period).  After the 2 years and until its maturity (for the remaining 10 years), the loan will behave as a
Conventionally Amortizing (for example: 100 Conventional Fixed)

What is the simplest and easiest way to model such a loan for the correct cash flow results?

Question 2:

What is the best way to do this (to create a second record for the same loan and alter the original one), using SQL commands or is there a way using any of the the OFSA applications?

Are there any fields that need special attention? Is there any note or documentation describing this?

Solution

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