Variable Rate Loans
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Screen ID: Screen Title: Panel Number: |
ULNVI-01 Variable Interest Code Definition 2393 |
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SEE ALSO: Printing Loan Variable Rate Configuration Information
Access this screen by selecting Tool #935: Variable Rate Code Configuration.
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Looking for some recommendations on your big picture planning for your loan configuration? Refer to the Big Picture Planning for Your Loan Configurations overview
This is the first of several screens used to create codes that control variable rate loan products. Variable rate codes can be one of three types:
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Update
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Group
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Contract
In addition, you can use a special feature on the Group variable rate configuration to offer a sort of “mini-contract” variable rate product that uses most of the features of a group code with a few customizable settings at the member loan level.
The three types of variable rate codes are split between Indexed variable rate codes and Non-indexed codes. Indexed simply means that the effective rate of the variable rate code is directly tied to a formula that is based upon some outside indicator, such as the current Prime Rate or the Consumer Price Index (CPI). Update types are non-indexed while Group and Contract types can be either indexed or non-indexed, depending on how changes to rates should be made.
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For a complete discussion of the different types of variable rates, instructions on using these screens to configure codes and update rates, and details on monitoring and servicing variable rate loan accounts, refer to the booklet, CU*BASE Variable Rate Loan Products.