Thanks so much Binny, tried the same formula for the another period, not matching.
22-Dec-20 14-Mar-21 82 360 10% 84,000.28 1913.339666 1,900.01 I used your logic (2+(24/30)), (2+24/31), all gives different results, none matching. Am I taking the right number? On a broader note, is it right to take 31 day for calculation while I specifically selected the 30/360 method for calculation? Is it a flaw? Regards s@if From: Binny Gopinath Sreevas <binny.gopin...@gmail.com> Sent: 23 October 2020 09:07 To: Dev <dev@fineract.apache.org> Subject: Re: Loan Repayment Calculation upon Loan Reschedule CAUTION: This email originated from outside of the organization. Do not click links or open attachments unless you recognize the sender and know the content is safe. 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<mailto: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." 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."
