Fixed rate for the duration of the loan term

Question

In response to GET Product Detail, the Consumer Data Standards (CDS) require the lending rate object to provide the fixed rate term in the additionalValue field when the lendingRateType is FIXED.

Given this, what is the value forperiod that is expected to be provided if there is no preset fixed interest rate period and the interest rate is fixed for the entire loan term? 

Answer

The DSB recommends the following:

• Set the duration to the maximum length that the loan would be offered for (ie. if the loan would be 30 years maximum then set the value to PY30)
• Add a comment in the additionaInfo field indicating that the rate applies for the entire term of the loan

The scenario described in the question was not considered when the PRD schema was originally defined. The PRD schema was developed on the feedback received from the banks, which at the time only indicated relatively short fixed rate terms.

See also:

• Fixed rates for lending or deposit additionalValue
• Banking Product Lending Rate
• Representing multi-tiered product rates