Ideas for the Mambu App

A (pre-)repayment never causes accrued interest to be applied and is allocated to the Minimum Repayment Amount of the current month

What?

Repayments can be made into a loan account at any time and never cause accrued interest to be applied/capitalised.

Interest is only applied/capitalised on the (never changing) interest capitalisation date.

Any prepayments are allocated to the Minimum Repayment Amount (MRA) of the current month (which would be similar to Mambu's On Upcoming Pending Instalment Only). Prepayments in excess of the MRA of the current month are not allocated to the MRA of the next month.

Why?

It is an Australian regulatory requirement that interest is only capitalised on predetermined interest capitalisation dates.

Note 1: See LNN-I-3 and LNN-I-4 for MRA definition and its relationship to Amortisation Schedule and Payment Schedule.

  • Sascha Dannroth
  • Nov 2 2018
  • Will not implement
  • Attach files