Same time interval with different interest variable rate in TRM

[Former Member]

Dear experts

In our company there is one contract in which exits overlap of time for calculation concerning two separate disbursements, and we would like to handle this case in one transaction, i.e. the lender is paying loan amount in several disbursement and each payment has its own interest rate.

every movement is representative of a payment made to our company and the interest is capitalized. But, as you can see in the yellow colored field, calculation for new disbursement in terms of time interval is coincide with another calculation. In the other words, for the same time interval, we have two different interest rates ( 10% and 12% in this case ). Now, please let me know whether there is any way to handle such a case in one transaction? in addition the inters rate is variable.

Regards

Calculation from	Calculation to	payment amount	interest rate	number of days	interest amount
30-Apr-15	31-May-15	1200	10%	31	10.19178082
6-May-15	31-May-15	400	12%	25	3.287671233

[Former Member]

Dear Gustavo

Thanks for your response. Here is sample of  a transaction we are working on. as you can see for a same time interval we have two interest rate because of the variable interest rate.

Regards

[Gustavo_Vazquez]

Hi Rosa,

In the example you sent you are Capitalizing Interest.

In the case of  6-May you are capitalizaing interest from 30-Apr to 31 May but you are on 6th May, so you are adding capital for a time which has not yet passed 7th May to 31th May.

The Ref.Int.Date Rate could be only one in the calculations, so if your system considers 30th April as your interest rate, that will be valid for the whole period (30th Apr-31th May).

You can change the amount of Capital to calculate interest,

for example: Capital is 1.000 and on May 12th you decrease 200, interest since 30th Apr to 11th May will be calculated on a capital of 1000, and from 12th may to 31th May the capital will be 800.

Hope this helps

Kind Regards

[Former Member]

Dear Gustavo

thanks for your response.let me clear this scenario with an example. imagine we have got a bank loan with amount of 60 m usd at the 2th of july 2010. so all the  interest calculation  would be over this period of time. it means we have to pay each interest at 2th of each month. but in our scenario we don't receive total amount in one time. for exp we have two different disbursement. the first one is 40 m usd and the second one is 20 m usd. imagine we receive the first one in 4th of the july 2010. as you know the system already calculated the interest amount for this period of time, meaning 2th of the july 2010 to 2th of the july 2011. since we have variable interest rate, we have to fix this with the EURIBEUR of the 2th of july 2010. but as i told you we receive a movement in 4th of the july. in our loan we have to fix the interest rate for 4th july 2010 to 2th july 2011 as well with the EURIBOR equal to the amount of 4th of july. here is the part that we have two interest rate for one period of time( 4th july 2010 to 2th july 2011) 

i hope you can understand what i mean cause i know somehow my explanation was really confusing.

Regards

[Gustavo_Vazquez]

Hi Rosa,

Could you post the screenshots of your transaction ?

Kind Regards

[Gustavo_Vazquez]

Hi Rosa,

In the same transaction, I think its not possible.

What is your product type ? What is the capital borrowed ?

How do you calculate the interest to be payed in this case ?

You should use 2 transacctions. Why do you want these operations in one transaction ?

Kind Regards