Interest rates based on utilisation of facilities

[anjireddy_appireddy]

Hi Team,

Can we setup interest rates based on facilities (loans) utilization?

A) The interest rates and commitment fees are vary based on utilization. If the credit loan utilization is more than 80%, the commitment fee is 1% and interest rate is 2%.Likely, Credit loan utilization is less than 80%,the commitment fee is 1.5% and interest rate is 1.8%.Can we automate this procedure with facilities or do you have best advise?

B) Can we  have two interest rates for tracking and calculation? The interest rate equal to Base rate + margin rate.

Thank you,

AR

[former_member198450]

Hi AR,

Please check the setting of product type for fee calculation.

  

[anjireddy_appireddy]

Can you elaborate more and share your thoughts.

For ex: Total credit line is - 100000 and have sub limites 3year-60000 and 5year-40000.

Can we achieve below requirement?

Performance   Level	Utilization	Commitment Fee (3 yr/5 yr)	Applicable Margin (Libor and Swing) (3 yr/5yr)	Applicable   Margin (Base Rate)
				(3yr/5yr)
I	>= 80%	0.25%/0.5%	1.875%/2.125%	0.875%/1.125%
II	<80% to <=40%	0.375%/0.625%	1.625%/1.875%	0.625%/0.875%
III	<40%	0.375%/0.625%	1.375%/1.625%	0.375%/0.625%

[grigoriy_babitskiy]

There is no standards in Facility for your requirement.

If you really need it, you can use Enchancemen points in Function group FTR_FC, function module FTR_FC_FEE_CALCULATE.

You have to ask you ABAP consultant to work with FG and FM to understan how it works and where you need to implement you logic.

[anjireddy_appireddy]

Hi Grigoriy,

Can you give more clarity on this functional module? We have started analysing it.

How this functional module updates existing facilities automatically without any action? Does it post utilization amount on month end or would it update conditions of facility transaction ?

It would be great help if you can give detailed approach.

Thanks