This section explains how to configure the interest rates and fees for loan products that use the Compound Interest calculation method.

Interest

• Initial Interest Rate: Specify the initial interest rate for this loan product.
• Minimum Interest Rate: Define the lowest allowable interest rate for this loan product.
• Maximum Interest Rate: Define the highest allowable interest rate for this loan product.

Fees

• Initial Administration Fee: Specify the initial administration fee for this loan product.
• Minimum Administration Fee: Define the lowest allowable administration fee for this loan product.
• Maximum Administration Fee: Define the highest allowable administration fee for this loan product.
• Charge Interest on Administration Fee: Select this checkbox if interest should also be calculated and charged on the administration fee.
• Initial Preparation of Business Plan Fee: Specify the initial preparation of business plan fee for this loan product.
• Minimum Preparation of Business Plan Fee: Define the lowest allowable preparation of business plan fee for this loan product.
• Maximum Preparation of Business Plan Fee: Define the highest allowable preparation of business plan fee for this loan product.
• Charge Interest on Preparation of Business Plan Fee: Select this checkbox if interest should be calculated and charged on the preparation of business plan fee.

In Default Settings

• Allow Charging of Fees and Interest when "in Default": Select this checkbox if the system should charge additional fees and interest when a loan enters a default status.
• Late Payment Grace Period: You can leave this field empty or set it to 0. Otherwise, specify the number of days after the final due date before "in Default" interest and fees are charged.
• Initial In Default Interest: Enter the rate at which in default interest should be charged once the loan goes into default (after the final due date).
• Minimum In Default Interest: Define the lowest allowable rate for in default interest.
• Maximum In Default Interest: Define the highest allowable rate for in default interest.

Rounding

• Round Instalments: Select this checkbox if the system should round the installment amounts.
• Round Loan Total: Select this checkbox if the system should round the total loan amount.
• Rounding Direction: Specify whether the value should round Up or Down.
• Rounding Order: Specify whether the value should be rounded to the nearest 1, 5, 10, or 50.

Buttons

• Next: Click to proceed to the next screen.
• Back: Click to return to the previous screen.
• Cancel: Click if you don't want to save the information to the database.