1.1.13.4 Exponential Calculation for Bearing Normal/ Bearing Amortized contracts

• A separate Loan products need to be maintained for Exponential loans.
• The main interest component to be selected for Exponential Interest Method.
• The system uses derived rate for calculation for Exponential type.
• The accrual of interest based on daily compounding is currently supported in the system. The interest accrued till previous day is added to principal amount for calculating current day interest for daily compounding. This matches with exponential interest accrual required for simple and amortized loans.
• If any interest is paid in between a compounding cycle, the paid interest is not considered for further compounding in simple /amortized loans.
• Changes are done in schedule recalculation processing of amortized loans.