What is rate effective date in SAP (FS-CML - Loans Management)?

SAP Term: rate effective date

• Component: FS-CML

• Component Name: Loans Management

• Description: Date on which a new interest rate for a loan is used for the first time. The rate effective date comes after the rate change date on which the new interest rate was determined.

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• Key Concepts: 
  Rate Effective Date is a term used in the FS-CML Loans Management component of SAP. It is the date on which a new interest rate becomes effective for a loan. This date is used to calculate the interest rate for the loan and can be changed at any time. 
  
  How to use it: 
  The Rate Effective Date is set when a loan is created and can be changed at any time. To change the Rate Effective Date, go to the Loan Details screen in FS-CML Loans Management and select the “Change Rate Effective Date” option. Enter the new date and click “Save” to apply the changes. 
  
  Tips & Tricks: 
  It is important to keep track of the Rate Effective Date for each loan as it affects the interest rate calculation. It is also important to remember that changing the Rate Effective Date will not affect any existing payments or interest calculations, only future payments and calculations. 
  
  Related Information: 
  For more information on Rate Effective Date in FS-CML Loans Management, please refer to SAP’s official documentation here: https://help.sap.com/viewer/product/FS-CML_LOANS_MANAGEMENT/latest/en-US/f9f8d7a2b3e14c8a9f3d7c6b2f5e4d1a.html