Mambu Banking Engine

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

Options for managing interest accrual and application after loan maturity

What:

Add more options/ parameters for managing loan interest accrual and application after maturity, for both Dynamic & Fixed loan types, such as:

- Stop accruing any interest after loan maturity

- Accrue interest but don’t apply it to the account, for X number of days after maturity, or until account is closed (last one is the current behavior).

- Accrue interest and apply it to the account daily (weekly, monthly...), for X number of days after maturity, or until account is closed.

- option to apply specific (different) interest rate after maturity

Why: 

To match different lending policies and country regulations: in some countries it is not allowed at all to accrue interest after a loan’s maturity date (the last installment date); in others it is allowed but for a limited number of days (so that the loan doesn’t accumulate interest forever); other organizations continue accruing and applying interest even after the last installment, as if the loan was still active. 

  • Rodrigo Ocampo Uribe
  • Apr 9 2015
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