Ideas for the Mambu Banking Engine

Automatic interest application with manual prepayment interest if principal paid before maturity

What

An option to automatically apply interest when manual interest application is used with prepayments and the principal balance is brought to 0. This would result in an 'Interest Applied' transaction and an interest accrued balance of 0.

Why

The manual interest application may be desirable before the loan's principal is cleared, but if this option is chosen and the full principal amount is repaid early, the account can then be closed straight away, including automatic closure as per the 'Internal Controls' setting 'Close dormant accounts after X days'. It would therefore be good if that was an option to automatically apply interest in such situations, so that the accrued interest is not lost and no additional manual work is required.

  • James Anderson
  • May 22 2020
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