Re: [Mifos-users] Question regarding the number of days used to calculate interest

[Bharath G. <bg...@mi...>]

Hi Fernando,

The Interest calculation at each Installment level will depend on other
configurations as well, mainly  on Interest method  and Interest
calculation type, could you share what is set for these fields?

for Interest Method,
if it is "Flat", then the amount would be calculated for the whole loan and
would be distributed equally among the installments
if it is set to "Declining Balance"- then the interest would be calculated
based on the previous principal Balance.

for Interest Calculation type,
if it is set to "Daily" then Interest would calculate for the exact no of
days gap between the installments
If it is set to "Same as repayment period" and the repayment period is
monthly, then it would calculated the Interest for 30 days for each
installments

Best possible configurations you could try for these two fields are
Interest Method - "Declining Balance"
Interest Calculation type - "Daily"

[image: image.png]


Regards,
Bharath
Lead Implementation Analyst | Mifos Initiative
Skype: live:cbharath4| Mobile: +91.7019635592
http://mifos.org  <http://facebook.com/mifos>
<http://www.twitter.com/mifos>


On Mon, Apr 7, 2025 at 11:07 PM Fernando Hillermann <
fer...@gm...> wrote:

> Hi there, good morning. I have configured my loan product to use the
> "Actual" calendar:
>
> [image: imagen.png]
>
> Nevertheless, when I create a new loan, Mifos is calculating every
> installment as if every month had the same amount of days. I tried changing
> to "365 days" in the "Days in year" parameter, but still the same result.
> Is there a way to configure Mifos so that it calculates interest based on
> the number of days a month has? (so, for february, it would calculate
> interest for 28 days for example). Check this example, interest is the same
> every month, even though the number of days is different:
>
> [image: imagen.png]
>
>
> Regards,
>
> Fernando Hillermann
>
>
>
>
> [image: emailAddress]
>
>
>
>
>
>
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