Hi, thanx for the reply.
The Interest rate is 10% per month (120% per annum),
Loan Product is setup for Monthly Repaymnt is Monthly.

My feeling is that mifos's Declining Balance- Interest Recalculation
is calculating, Interest PER DAY and not PER MONTH hence the variance
in figures from that of Flat interest rate type.
Could there be a work around or any pointers on setting i could be
doing wrong

Below r the Loans Setting, Sorry for the messy attachment.

Tx in advance

************************************************************************************************************************************
MPL LOAN PRODUCT         Edit Loan product information.
  Active
Loan product details.
Product instance name: Member Of Parliament
Short name: MPL

Description
Loan for Members of Parliament

Product category: Other
Start date: 01/01/2005
End date:
Applicable for: Clients
Include in Loan cycle counter: No
Can waive interest on repay loan: Yes
Calculate Loan Amount as: Same for all loans
Min loan amount         Max loan amount         Default amount
0.0     100000000.0     0.0
Associated Question Groups :

Interest rate
Interest rate type: Declining Balance-Interest Recalculation
Max Interest rate: 999.0 %
Min Interest rate: 0.0 %
Default Interest rate: 120.0 %
Repayment schedule
Can configure variable installments: No
Compare with Cash Flow: No
Frequency of installments: 1 month(s)
Calculate # of Installments as: Same for all Loans
Min # of installments   Max # of installments   Default # of
installments
1       100     1

Grace period type: None
Grace period duration: 0 installments
Fees

************************************************************************************************************************************


On Feb 24, 12:27 pm, Intrasoft Technologies <[email protected]>
wrote:
> Hello Thomas;
>
> Is the interest rate 10% or 120%, you have indicated 120 in your email but
> just when you calculate the percentage simply to get repayment of
> 2,200,000/= from a loan of 2,000,000 the rate is 10. Declining balance will
> be different from Flat if there are more than one installment which is not
> your case here.
>
> I have a feeling the mismatch comes with the product setup, what is the
> frequency of installment set in the product?
>
> Is it possible you share snapshot of product information?
>
> Regards;
>
> --
> ******
> *INTRASOFT TECHNOLOGIES | B8, KIGLESS HSE MOI AVENUE
> **P.O. BOX 82298 - 80100 Mombasa Kenya.
> Tel:+254 20 267 0011/ Cell:+254 734 138478
> Email: **[email protected]* <[email protected]>
>
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Virtualization & Cloud Management Using Capacity Planning
Cloud computing makes use of virtualization - but cloud computing 
also focuses on allowing computing to be delivered as a service.
http://www.accelacomm.com/jaw/sfnl/114/51521223/
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