Ideas for the Mambu Banking Engine

Arrears tolerance option: day of month

For revolving credit

What: As a client, I would like to pick my re-occurring Monthly Repayment Day and receive my account statement well in advance.

Problem: As of today, when setting up a revolving credit account, one can choose the "Monthly repayment day" which effectively is the date when the installment is created/due amounts are determined. This is also the earliest date when an invoice/account statement can be created for the account and sent out to the client. In many countries, a client has the legal right to pay only 14 days after receiving the invoice. The workaround so far has been to use the Arrears Tolerance Period. Since the arrears tolerance period only supports the format of # days, it becomes logically impossible for the client to pick their real Monthly Repayment Date.

By adding the option of being able to set the Arrears Tolerance period as a day of the month (similar as to choosing the Monthly Repayment Days) this would allow us to set up a "Monthly Installment day" for the account and also enable the client to pick their Monthly Repayment Date.  The Arrears Tolerance period will, therefore, be different in length of days depending on the number of days in the actual month

Example:

Monthly repayment day (Installment) - 25th

Arrear Tolerance day (Client due date) - 5th

Month Repayment day Arrear Tolerance day # days arrear tolerance
January 25/1 5/2 11
February 25/2 5/3 8
Mars 25/3 5/4 11
April 25/4 5/5 10
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  • Nov 21 2017
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