Thomas,

You are correct. Interest Recalculation is done based on 'days'. As
such you will see some differences between monthly calculated figures.

Keith.

On Fri, Feb 24, 2012 at 2:01 PM, Thomas (Uganda) <[email protected]> wrote:
> 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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>>
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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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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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