Ideas for the Mambu Banking Engine

New calculation method for "Payment Due" fees: flat amount/ number of terms

What: Add a new method for calculating the amount of "Payment Due" fees, as flat amount divided by the number of terms. 

E.g. for a loan with 6 monthly repayments, and a 30$ fee charged from the beginning, the monthly fee amount would be = 30 / 6 = 5$, applied every month with the Payment Due as per the schedule. 

Why: Many organisations use this method to charge different fees, among which:

- insurance/ guarantee fees (the total premium amount is calculated at the beginning of the loan, then divided and paid up monthly)

- loan processing/ servicing fees (a certain amount is defined as a fee, but the amount is paid by clients in instalments rather than upfront)

  • Rodica Levitchi
  • Sep 22 2016
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  • Kelly Jaques commented
    September 28, 2016 12:55

    Please also consider the number of terms may not be the full length of the loan.  We sometimes charge a disbursement fee, which is only amortized over the first few installments and not the lifetime of the loan.