This section outlines how to configure the interest and fee settings specifically for loan products using the Profit Rate calculation method.

Profit

• Standard Profit Rate: Enter the standard profit rate for this loan product.
• Minimum Profit Rate: Set the lowest allowable profit rate for this loan product.
• Maximum Profit Rate: Set the highest allowable profit rate for this loan product.

In Default Settings

• Allow Charging of Fees and Interest when "in Default": Select this checkbox if you want the system to charge additional fees and interest when a loan enters default status.
  • Note: If an installment is rescheduled, penalty interest will only calculate from the due date plus the grace period.
• 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 applied.
• Standard In Default Interest: Enter the rate at which penalty interest should be charged once the loan goes into default (after the final due date).
• Minimum In Default Interest: Set the lowest allowable rate for "In Default" interest.
• Maximum In Default Interest: Set the highest allowable rate for "In Default" interest.
• Interest and Fees: Choose between Not Applicable and Loan Capital.

Rounding

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

Buttons

• Cancel: Click to discard your changes and not save the information to the database.
• Save: Click to save the entered information to the database.
• Close: Click to close the current screen and return to the previous page without saving.
• Save & Close: Click to save the information to the database and then close the screen, returning you to the previous page.