How To Fix FVD_CLI_CLOAN001 - Contract amount is too high for rate &1

SAP Error Message - Details

• Message type: E = Error

• Message class: FVD_CLI_CLOAN - Credit Life Insurance for Consumer Loan

• Message number: 001

• Message text: Contract amount is too high for rate &1

What causes this issue?

When checking the credit life insurance contract data against the credit
life insurance rate (Customizing), the contract capital to be insured
exceeds the maximum amount to be insured.

System Response

The system issues an error message and will not allow you to continue with this transaction until the error is resolved.

How to fix this error?

Procedure for System Administrators

Error message extract from SAP system. Copyright SAP SE.

Smart SAP Assistant

• What is the cause and solution for SAP error message FVD_CLI_CLOAN001 - Contract amount is too high for rate &1 ?

  The SAP error message FVD_CLI_CLOAN001 indicates that the contract amount specified in a loan or credit contract exceeds the allowable limit based on the interest rate defined for that contract. This error typically arises in the context of financial services, particularly in loan management or credit processing within SAP.
  Cause:
  
  Contract Amount Exceeds Limits: The primary cause of this error is that the contract amount you are trying to enter is higher than what is permissible for the specified interest rate. Each interest rate may have a maximum limit for the contract amount based on risk assessments, regulatory requirements, or internal policies.
  Configuration Issues: There may be configuration settings in the SAP system that define the relationship between contract amounts and interest rates, which could be incorrectly set.
  Data Entry Errors: There might be a simple data entry error where the contract amount was incorrectly inputted.
  
  Solution:
  
  Review Contract Amount: Check the contract amount you are trying to enter. Ensure that it is within the acceptable limits for the specified interest rate.
  Check Interest Rate Configuration: Review the configuration settings for the interest rates in the SAP system. Ensure that the limits for contract amounts are correctly defined and aligned with your organization's policies.
  Adjust Contract Amount: If the contract amount is indeed too high, consider adjusting it to a permissible level based on the interest rate.
  Consult Documentation: Refer to the SAP documentation or your organization's guidelines regarding loan contracts and interest rates to understand the limits and conditions.
  Contact Support: If you are unable to resolve the issue, consider reaching out to your SAP support team or a financial consultant who specializes in SAP financial modules for further assistance.
  
  Related Information:
  
  SAP Modules: This error is typically encountered in modules related to Financial Services (FS) and Loan Management (FVD).
  Interest Rate Management: Understanding how interest rates are managed in your SAP system can help in troubleshooting similar issues in the future.
  Regulatory Compliance: Ensure that your loan processing adheres to any regulatory requirements that may dictate maximum loan amounts based on interest rates.
  
  By following these steps, you should be able to identify the cause of the error and implement a suitable solution.