PS:
This also means, that when I make just a 0.01 overpayment, the system will
recalculate the EMI for the next installments, reflecting the changed rate.

On Mon, Mar 2, 2026 at 1:23 PM Piotr Wargulak <[email protected]>
wrote:

> Hello,
>
> I have an issue with how the schedule recalculates after linked Floating
> Rate changes in a Loan with a Cumulative schedule.
> I'm wondering if this is intended behaviour or if there are other
> configuration options that can change it.
>
> In short, a Loan with:
> Cumulative schedule;
> Equal installments;
> Declining Balance;
> Partial Interest Calculation allowed;
> Interest recalculation enabled;
> Interest recalculation - Advance payments adjustment type: *Reduce EMI
> amount*.
>
> Two operations now occur on the Loan, and Finertact handles them as
> follows:
> 1. The installment is overpaid. The next due installment is
> recalculated to cover the entire overpayment, the schedule is recalculated,
> the later installments are all equal to new EMI.
> 2. The interest rate change. The installments after the change are
> recalculated *but* the original EMI remains; only the last installment
> changes.
>
> I expected that *both* operations would change the EMI for later
> installments.
>
> The advance payments adjustment type (Reduce EMI amount) doesn't seem to
> affect the schedule recalculation resulting from an interest rate change.
> Before diving into a 3k loc class, I thought I would ask if anyone can
> give me some pointers.
>
> Best regards,
> PiotrW
>

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