New Amortization Type: Principal First

A new amortization type called “Principal First” has been added to the Cash Flow Engine, designed mainly for employee or staff loans offered at subsidized rates. In this structure, the entire principal is repaid first while simple interest accrues on the reducing balance, and the accumulated interest is settled later in equal installments without compounding. Such loans receive special accounting treatment under standards like IFRS 9 due to their concessional nature.

Steps to enable and configure

You don't need to do anything to enable this feature.