> For the complete documentation index, see [llms.txt](https://docs.mifos.org/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.mifos.org/mifosx/user-manual/for-administrators-mifos-x-platform/administration/products/loan-products/loan-product-fields/enabling-floating-rate.md).

# Enabling Floating Rate

### Defining Loan product - Floating rate 

**Go to Admin>>Product>>Loan Product>> Create Loan products** 

Provide all the necessary fields for creating a Loan product, refer [Loan Product Fields](/mifosx/user-manual/for-administrators-mifos-x-platform/administration/products/loan-products/loan-product-fields.md)

### Step I

 Go to the **Term** section and update fields respectively :-   

![](https://mifosforge.jira.com/wiki/download/thumbnails/111673392/23.png?version=1\&modificationDate=1452745956858\&cacheVersion=1\&api=v2\&width=900)

**1 - Is Linked to Floating Interest Rates:** Check the check box, to enable floating rates and to define. 

**2 - Select Floating rate chart:** Select floating rate chart. *You can select floating rate chart from here:-* [*Floating Rate*](/mifosx/user-manual/for-administrators-mifos-x-platform/administration/products/floating-rate.md)*.*

**3 - Interest rate field:** Provide interest rate. Note this provided interest will be added on to the selected rate chart. 

**4 - Is floating calculation allowed:** Check the check box, to enable floating calculation. If this is unchecked, it will consider the flat rate i.e the disbursement date rate and it will remain same throughout the installments. For example please refer:- [How to provide floating rates](/mifosx/user-manual/for-operational-users-mifos-x-web-app/accounts-and-transactions/loan-accounts/how-to-provide-floating-rates.md) 

**5 - Minimum Floating interest rate allowed field:** Provide minimum floating interest rate allowed. 

**6 - Default Floating interest rate allowed field:** Provide default floating interest rate. 

**7 - Maximum Floating interest rate allowed field:** Provide maximum floating rate allowed. 

Then define other required fields like Principal, number of Installments and Repaid every.  

### Step II

 Go to the **Settings** section and update mandatory fields respectively :-   

![](https://mifosforge.jira.com/wiki/download/thumbnails/111673392/24.png?version=1\&modificationDate=1452747835992\&cacheVersion=1\&api=v2\&width=800)

**8 - Interest Method -** Must Be Declining balance in order to use floating interest rate. 

**9 - Calculate interest for exact days in partial period -**  Must be checked box in order to use floating rate. 

### Step III

Go to the **Interest Recalculation** section and update mandatory fields respectively :-  

![](https://mifosforge.jira.com/wiki/download/thumbnails/111673392/25.png?version=1\&modificationDate=1452748350481\&cacheVersion=1\&api=v2\&width=800)

 **10 - Recalculate Interest -** Must be enabled by checking the check box, in order to use Floating rate. 

Then define other required fields for interest recalculations. Refer -[ Loan Products#InterestRecalculation ](/mifosx/user-manual/for-administrators-mifos-x-platform/administration/products/loan-products.md)  

### Step IV 

Once you are done with updating all the necessary fields which are required for creating loan product, click on the **Submit** button.  

### Viewing of Loan Product - Floating rate

**Go to Admin>>Product>>Loan Product>>** List of created loan products is displayed >> Select required product to view as shown below. 

**Screen shot 1 -** A defined example of a Loan product with Floating rate, without accounting enabled. 

![](https://mifosforge.jira.com/wiki/download/attachments/111673392/Screenshot%20from%202019-07-15%2015-16-07.png?version=2\&modificationDate=1563200322481\&cacheVersion=1\&api=v2)

Related articles

* Page:[Enabling Floating Rate](/mifosx/user-manual/for-administrators-mifos-x-platform/administration/products/loan-products/loan-product-fields/enabling-floating-rate.md)
* Page:[Loan Products](/mifosx/user-manual/for-administrators-mifos-x-platform/administration/products/loan-products.md)
* Page:[Loan with term vary based on loan cycle](/mifosx/user-manual/for-operational-users-mifos-x-web-app/accounts-and-transactions/loan-accounts/loan-with-term-vary-based-on-loan-cycle.md)
* Page:[Tranche loan process](/mifosx/user-manual/for-operational-users-mifos-x-web-app/accounts-and-transactions/loan-accounts/tranche-loan-process.md)
* Page:[How to create new loan - Interest Recalculation](/mifosx/user-manual/for-operational-users-mifos-x-web-app/accounts-and-transactions/loan-accounts/how-to-create-new-loan-interest-recalculation.md)