Default interest is calculated on arrears installments. Here's how it applies in different situations:

1. Partial Payments

If a payment less than the full installment amount is made in the middle of the month, only the applicable portion of the default interest will be posted up to that date. The remaining default interest will be posted at month-end.

2. No Payment and Grace Period

Default interest is charged on month-end or when a payment is received. It is applied to installments that are in arrears.

• If your installment due date plus the grace period falls before month-end, default interest will be charged at month-end.

• If your installment due date plus the grace period falls after month-end, default interest will only be charged at the next month-end.

3. "Charge Fees and Interest When in Default" is Off

If the "Charge fees and interest when in default" checkbox is unselected, no default interest will be charged, even if installments are in arrears.

4. "Do Not Charge Interest and Fees" is On

If the "Do not charge interest and fees" checkbox is selected, the system will not charge any fees or interest from that point onward. This applies even if the loan is in arrears and the "Charge fees and interest when in default" checkbox is selected.