Facing negative interest issue when creating trache loan. Below is the details.
Can someone tell if you have faced the same issue and fixed.? Or are we making
any mistake while creating the loan.
We have created a new Tranche Loan as follows:
Disbursement Date: 01/05/2018
Principal : 100,000
Loan Term : 60 Months
Number Of Repayments: 60
Repaid Every: 1 Month
First Repayment: 31 May 2018
Nominal Interest Rate: 10 per Year
Interest Method: Declining Balance
Amortization: Equal Installments
Interest Calculation Period: Same as Repayment Period
Calculate interest for exact days in partial period: True
Loan Tranche Details:
Maximum allowed outstanding balance: 100,000
Expected Disbursement On Principal
The loan creation screenshots are attached
When we create this loan, the repayment schedule generated gives the Interest
for the first installment as a negative value.
This issue is only faced when we explicitly mention the first repayment date in
the same month as of the tranche expected disbursement date. The repayment
schedule generated is also attached (RepaymentSchedule).