This fall CS Ltd is planning to release a new product – “Loan 5_7_9 %”. The solution automates the process of calculating compensations related to the payment of interest on a loan and provided by the preferential state lending program "Available loans 5-7-9%" for individuals – entrepreneurs (hereinafter – the Program).
The Program "Available loans 5-7-9%" works within programs of the Entrepreneurship Development Fund of Ukraine (hereinafter – the Fund) and based on the Cabinet of Ministers of Ukraine Resolution dated 01.24.2020 № 28 “On approval of the Procedure for providing financial state support to micro entrepreneurship and small business entities”.
The client – a member of the "Available loans 5-7-9%" Program of the Entrepreneurship Development Fund – pays interest accrued only on a fixed part of interest rate on the loan (compensation rate). According to the terms of the Program, this is 5 or 7 or 9% of the basic (base) rate depending on the type of business and the number of workplaces that the client provides as an employer.
Base rate corresponds to 3 months UIRD plus margin. At the same time, the rate should not exceed the value of the UIRD index for 12 months, multiplied by 1.2 (1.35), and should not be more than 30% per annum.
The difference between the amounts of interest at the main (base) and compensation rate is paid (compensated) by the state represented by the Fund from an escrow account opened in the Bank.
The scope of changes is significant, but visually almost invisible
The product "Loan 5_7_9%" is implemented within the subsystem "Loans +" for the types of transactions "Credit line", "Commercial loan", "Loan for individuals", "Installment". The availability of loans with compensation is regulated by the settings – for this, the appropriate mode can be enabled.
“Implementation of the new functionality has required a number of serious and time-consuming tasks solving. At the same time, we did our best to ensure that almost nothing would change visually for an CBS B2 user”, – Oleg Vyazmitinov, CEO of CS Ltd.
What will be changed:
Mechanisms for calculating interest, plotting KG/EPS/IRC will remain unchanged. In addition, the interface for displaying the expected transaction documents, the interface of the interest repayment schedule will not change (payments for interest repayment are still expected in the total amount).
After implementing of new functionality accrual and repayment of interest at the base and compensation rate, as well as reimbursement of funds from the escrow account will be reflected in the bank reports.
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