4.73.03 - Late Interest and Service Fee Enhancements

30-11-2024

We’ve introduced enhancements to streamline late interest and fee management for overdue loans:

• Configuration: Set late charges (interest, penalty, service fees) and grace days in loan product details.

• Automation: Late fees are now calculated automatically during loan transactions.

• Reporting: Updated reports now include late interest and fees in key loan and transaction reports.

• UI Updates: Configure late fees in loan product details, and view late interest in repayment schedules and loan balances.

These updates improve accuracy, automation, and reporting across the loan lifecycle. For setup details, click the link below:

Late Costs | Mobiloan User Guide

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What are late fees?

• Late fees are applied when a payment is missed or overdue.

• Late fees are calculated on the next installment date (before or after the last installment date). For example, if a payment is due on January 1, the late fee is calculated on February 1.

• Grace days only apply to the final manual settlement calculation, while automated late settlement fees are added 30 days after the due date.

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Automatic Fee Creation:

• A daily cloud task runs at 12:00 AM to find overdue loans and create late fees based on matching action_date or next_date_transaction.

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Data Model Changes:

• Loan Model: New fields added for tracking late interest (late_interest) and late settlement dates (late_settlement_date).

• Loan Transaction: New field for tracking late interest amount (amount_late_interest), which is automatically calculated.

• Installment Receipt: Field added for late interest, ensuring it is properly apportioned.

• Loan Product: New options for managing late settlement costs and interest components (e.g., penalty, interest, service fee, capital, initiation, etc.).

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