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PAY_IN_LON_602 - Define Loan Conditions for Loan Type

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In this Customizing activity, you define the loan conditions that are applicable for a specific loan type.

Note:

You use this Customizing activity only when progressive interest calculations are applied to loan types in your company. Otherwise, make Customizing settings in Maintain Loan Types.

• You have defined that a loan type calculating interest using progressive calculation method in Customizing for Payroll India under Company Loans -> Master Data -> Maintain Deduction Details Under Section 24.

• You have defined the slabs in Customizing for Payroll India under Company Loans -> Calculation -> Loan Interest Calculation -> Define Progressive Interest Calculation.

1. Choose a loan type.
2. If there is no entry for loan condition, choose New Entries.
3. Define a period of validity for the loan condition.
4. In the Loan Condition field, enter a freely definable two-digit key and an explanatory text for the condition.
5. In the Debit Interest field, enter the interest rate for the loan calculation.
6. If necessary, enter a special reference interest rate in the Reference Interest Rate field.
7. If necessary, select the Interest Rate Advantage checkbox.
8. In the Slab Code for Loans field, specify a slab code.
9. In the Period Parameterfield, enter the key for the periodicity of the loan type.
10. Define the pattern for the deduction of interest and the repayment amount, by defining the first period and the interval to the subsequent periods.
11. You must specify the interest pattern and repayment pattern for installment loans.

For annuity loans, you must only specify the annuity pattern.

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