1.9 Calculate Loan Payment Periods and Installment Amount

Reference: Establish and Maintain Loan Process Model - Page 1 for the business process diagram associated with this activity.

Actor/Role: CC&B

Description: Based on the Loan information entered, CC&B then calculates the number of periods and installment amount for the Loan Service Agreement.

Entities to Configure

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SA Type

•	SA Start Option

Available Algorithms

•	LPDA-SI - This loan amortization period and payment amount algorithm is used for calculating the number of amortization periods or the fixed amortization amount for a simple interest loan.

•	LINT-SI - This loan interest charge algorithm calculates the interest charge (using simple interest only) for a loan service agreement for a particular bill period.

The interest calculation is based on: 1) unbilled principal (i.e., the service agreement's payoff balance minus the current balance), 2) the number of billing periods covered by the bill, and 3) the interest rate.