Interest and Fees

Interest and Fees

Interest and Fees Setup for Simple Interest Loan Products

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

Initial Interest Rate: Specify the starting interest rate for this loan product.
Minimum Interest Rate: Set the lowest allowed interest rate for this loan product.
Maximum Interest Rate: Set the highest allowed interest rate for this loan product.

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

Allow Charging of Fees and Interest when "in Default": Select this checkbox if the system should charge additional fees and interest when the loan enters a default status.
Late Payment Grace Period: You can leave this value 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 allowed rate for in default interest.
Maximum In Default Interest: Define the highest allowed rate for in default interest.
In Default Interest Calculation: $O u t s t an d in g \times \frac{Default Interest Rate}{Total No of Days in Month} \times No of Default Days$

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.

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.

MAXMONEY Developed by MYCOMAX MICROFINANCE SOLUTIONS. Novamesh 18/06/2026