Hi Saif, I have not fully validated your excel sheet. However, here is my understanding:
Fineract treats a full month as 20th to the next 20th date. But when a partial month is involved, Fineact does an exact-days-based calculation. In your example 20th Dec 2020 to 20th Jan 2020 is treated as one full month The period from 20th Jan to 14th Feb has 25 days and the full month (20th Jan to 20th Feb) would have had 31 days - so it is treated as 25/31th portion of a month. 84,000.28 * 10% / 12 * ( 1 + 25 / 31 ) = 1,264.52 Hope this will be of some help. Regards Binny On Fri, Oct 23, 2020 at 12:44 AM Saifudeen Khan <sai...@zucisystems.com> wrote: > Team > > > > I am new to Fineract and presently trying to learn the platform. I created > a loan product with the following terms > > > > Principal - 100000; Interest - 10%/year; 12 months duration; declining > balance; 30/360 method > > > > How does the interest calculation part work here? I tried doing a sanity > and found a difference of 4/- for a mount of 100000 issued over for a > period of 12 months with 10% interest/year > > > > Step 1: Disbursed Loan on 20-Oct > Step 2: Repayment of 2 EMI (Nov, Dec) > Step 3: Reschedule Loan from 20 Jan 2021 to 14 Feb 2021 > Step 4: View Repayment schedule > Step 5: See the interest calculated for 14 Feb 2021 as 1,264.520 > > While validating manually (Interest = P-Pp*10%*54/360), as the duration > comes as 54 days and upon calculation it comes as 1260/- only, whereas > fineract gives 1264.50/- > > I am not sure from where the difference 4 has come during the calculation. > > Regards > > s@if > > > Disclaimer: "The contents of this e-mail and any attachments enclosed > therein are intended solely for the addressee(s) and may contain > confidential and/or privileged information. It may also be the sole > intellectual and proprietary resource of Zuci Systems and therefore may be > legally protected from disclosure. If you are not the intended recipient of > this message, or if this message has been addressed to you by inadvertence, > kindly alert the sender by email and then follow with its deletion. If you > are not the intended recipient, you are hereby notified that any use, > dissemination, copying, or storage of this message or its attachments is > strictly prohibited and shall make you liable for consequences under > applicable laws." >
