Interest accrual

Interest accrual is a daily job that runs at midnight for every active loan. The same engine is used for both loan types, but the inputs and outputs differ.

Common rules

• The rate used for accrual is the agreed rate at the time of issue.
• Each daily run produces a new loan snapshot — the financial position as of that day.
• Loans in terminal status (Repaid, Closed, Written Off) are skipped.

Fixed-term loan

• Daily interest is added to the interest balance until the next payment date.
• On the payment date, the scheduled payment process allocates the borrower’s payment to interest first, then to principal, following the amortization schedule.
• If the system prime rate changes (and the loan has a variable rate), the schedule is recalculated for all remaining periods on the effective date.
• If the borrower is overdue, default interest accrues on the overdue principal at the penalty rate from the product.

Credit line

• Daily interest is calculated on the outstanding principal (drawn) balance and accumulates inside the currently open billing cycle.
• Each credit line has at most one open billing cycle at a time. When the closing date arrives, the cycle is closed: the accumulated interest plus principal due is the cycle’s payment amount, due on the cycle’s payment date.
• A new billing cycle then opens automatically.
• When the drawdown freeze date approaches (a configured number of days before maturity), drawdowns are blocked, and only repayments continue.

In both cases, the loan moves to Overdue automatically if the payment day passes and the obligations remain unmet.