Loan Instalments Do Not Decrease After Rate Decrease

(Doc ID 2315255.1)

Last updated on OCTOBER 13, 2017

Applies to:

Oracle Loans - Version 12.2.5 and later
Information in this document applies to any platform.

Symptoms

On : 12.2.5 version, Setup Issues

ACTUAL BEHAVIOR
---------------
The decreased interest rate was applied to all floating loans by running the "LNS: Mass Update Floating Rate Loans" program. All the loans were update with the new rate by the program, but the installments (Payment amounts) stayed the same. The installments should have decrease with the decrease in rate.
If the Rate is increased, the Installments do Increase as well but vice-versa is not true.

EXPECTED BEHAVIOR
-----------------------
Loan Installments must also decrease after a decrease in the interest rate

STEPS
-----------------------
The issue can be reproduced at will with the following steps:
1. Decrease the interest rate and apply to all floating loans by running the "LNS: Mass Update Floating Rate Loans" program
2. Check the installments (Payment amounts)

BUSINESS IMPACT
-----------------------
The issue has the following business impact:
The installments should have decrease with the decrease in rate.

Cause

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