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One of our clients would like to allow his clients to prepay the principal outstanding for their loans. If they prepay (and keep prepaying) the remaining interest can be waived at the end of the loan term manually.
The strategy would therefore do:
On-Time or Late payments:
Interest
Principal
Penalties
Fees
Advance payments:
Principal only
This means that after advance instalments fall due, any new payments will first hit the interest of that instalment before being allocated to principal again for advance instalments.
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Minor
