Fixed Term Loan Accounts; now support Flat Interest Rates

Fixed Term Loan Accounts now support Flat Interest Rates, under the following conditions:

1. Use Precomputed Contractual Interest must be checked.
2. Start-up Interest Period must be either Not Applicable or Interest Free.

The Account Type, Interest Options page has been re-arranged under a sub-heading/ checkbox "Use Precomputed Contractual Interest?". This includes the new "Calculate Interest using a Flat Rate basis?

Note, although finPOWER Connect calculates a True Interest Rate and displays this as well as the Flat Rate, you should check the Loan falls within your legal requirements.

Flat Interest calculates overall Interest by taking the Opening Interest Bearing Principal and Fees and multiplying this Interest Rate and adjusting for the Term. If there is an Interest Free Start-up Period the Term is for the Ongoing period only.

Note, the Australian Loan Contract Word VBA document, Loan_Contract_AU.dot, has been updated to show the Flat Interest Rate. New Zealand Contracts remain the same as the Flat Interest Rate does not apply to CCCFA Loans.