Mambu Banking Engine

Ideas aimed to improve the current experience provided by the Mambu Banking Engine.

EIR Fee Amortisation for loans using a different than EMI schedule

What:

Loan Fees EIR Amortization calculation, currently available in Mambu for all loan types, is based on expected cash flows associated with Declining Balance Equal Installments repayments.

Implement Loan Fees EIR Amortization calculation based on expected cash flows associated with the actual loan installment repayments (depending on the loan type i.e. Declining Balance, Declining Balance Equal Installments, etc.).

Why:

To continue to offer fee EIR amortization option considering cash flows associated with each loan type (based on different schedules, and therefore different projected cash-flows). Otherwise, from the accounting perspective, income recognition is incorrect as it's not based on the actual EIR but EIR calculated under equal installments cash flows projections.

  • Suzana Dejkanovic
  • Dec 6 2018
  • Planned
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