Open End Lending

An open end loan (also known as a line of credit) is a type of credit arrangement issued by a financial institution which offers an individual immediate access to a predetermined amount of cash upon demand without having to apply for a loan. Each month, a periodic disclosure is provided, which usually contains a minimum payment which is computed based upon the amount of funds drawn from the credit line (the balance) at the time of the calculation. As with closed end loans, protection products may be included with the calculation.

Sample Request

The following is a sample XML request for an open end loan calculation:

<inOpenEnd Account="2" BCPY="12" UseMAPR="true">
    <BeginDate>2001-01-01</BeginDate>
    <TimeToPmt TimeUnits="Days">30</TimeToPmt>
    <Balance>1000</Balance>
    <IntRate AccrualCode="220">9.000</IntRate>
    <Payment FloorPmt="0" PmtType="IntOnly">0</Payment>
    <Fee Name="ProcFee" Entry="5" AddToFinChg="true" MAPR="true" />
    <Protection ShowCaps="false">
        <Life Covers="both" />
        <Dis Plan="0" Covers="borrower1" />
        <Birthday1>1966-01-01</Birthday1>
        <Birthday2>1966-04-01</Birthday2>
    </Protection>
</inOpenEnd>

Sample Response

The following is a sample XML result generated by the previous sample request:

<?xml version="1.0" standalone="no" ?>
<!DOCTYPE outOpenEnd SYSTEM "outOpenEnd.dtd" >
<outOpenEnd>
    <Results>
        <Description>Successful Calculation</Description>
    </Results>
    <RegZAPR FinChg="32.40">38.880</RegZAPR>
    <MAPR FinChg="34.70" Max="36.000" MaxExceeded="true">41.640</MAPR>
    <FinChgFees>25.00</FinChgFees>
    <MAPRFees>27.30</MAPRFees>
    <Fee Name="ProcFee">25.00</Fee>
    <PaymentInfo>
        <Interest Method="Actual/365 Simple">7.40</Interest>
        <PrinReduction>0.00</PrinReduction>
        <TotProtection PerDay="0.08">2.30</TotProtection>
        <Payment Warning="None" Days="30" Date="2001-01-31">9.70</Payment>
        <Payoff>1009.70</Payoff>
    </PaymentInfo>
    <ProtectionInfo Age="35" Product="Life">
        <CalcResult>Valid Calculation</CalcResult>
        <Cost Premium="1.50" PerDay="0.05" Factor="1.500"/>
        <Coverage Amount="1000.00" Note="Full protection"/>
    </ProtectionInfo>
    <ProtectionInfo Age="35" Product="Disability">
        <CalcResult>Valid Calculation</CalcResult>
        <Cost Premium="0.80" PerDay="0.03" Factor="0.800"/>
        <Benefit Amount="9.70" Note="Full protection"/>
    </ProtectionInfo>
</outOpenEnd>