Fairways Debt enables you to manage subsidy tables, used to compute subsidized interests.
Prerequisite
- Enable the Subsidy Loan transaction type (contact your Finance Active consultant)
Navigate to the Account Administration
- Log in to your Fairways Debt account.
- Select a customer account.
- Click Account Administration in the application menu.
Create a Subsidy Table
- Navigate to Account > Account Configuration.
- Click Add Subsidy Tables.
- Complete the form with all relevant details.
Note: Both Reference Code and Description fields are mandatory.
|
Field |
Description |
|---|---|
|
Reference Code |
Unique reference of the subsidy table. Used to identify the subsidy table in the portfolio. |
|
Description |
Name of the subsidy table, displays in the New Subsidy Loan form. |
- Click Add to add a year to the subsidy.
- Enter the subsidy and interest cap rates, if relevant.
Note: For each payment period:
- If the interest rate is lower than or equal to the interest cap (%):
- There is no subsidy, i.e. the subsidy interest is equal to 0.
- If the interest rate is greater than the interest cap (%):
-
- Subsidy Interest Rate = (Interest Rate - Interest Cap (%)) * Subsidy (%)
- New Interest Rate = Interest Cap (%) + (Interest Rate - Interest Cap (%)) * (1- Subsidy (%))
- Interest Rate = Subsidy Interest Rate + New Interest Rate
-
- Click Apply.
WARNING: You cannot delete a subsidy table, but you can edit it.
The new subsidy table displays in the list.
