This window allows automatic calculation of penalties on loans in arrears for several loans. This feature calculates arrears on all outstanding loans which are subsequently displayed in the scroll window below.
How to calculate penalties on loans in arrears
To calculate penalties on loans in arrears, go to Loans\Penalties on arrears, a screen like one below will appear:
- Calculate penalties on capitalized interest and penalties in arrears: When this option is selected then the system will include the interest that has been compounded/added to principal in the computation of penalties.
- Calculate penalty if the days in arrears are past the grace period: When this option is selected then the system will calculate penalties only when the grace period has elapsed.
- Include loans with dues on reporting date: When this option is ticked, then the system will include in the computation of penalties those loans that are due to be paid on that date i.e entry date of the penalties for in instance "15/10/2018" but have not yet been paid.
- Exclude expired loans: Selecting this option will include the loans whose loan term has passed.
The parameters used for the arrears calculations are those as configured under System Configuration/Loan Product Settings/Penalties Settings for every product.
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