Why Number of Loan Installments Reduces when the EMI Repayment Date is Switched to any Subsequent Due Date ?
(Doc ID 2670759.1)
Last updated on MAY 19, 2020
Applies to:Oracle Loans - Version 12.1.3 and later
Information in this document applies to any platform.
Why number of Loan Installments reduces when the EMI Repayment Date is switched to subsequent Due Date ?
Loan Term = 6 months
Loan Interest Rate = 10%
EMI Payment Frequency = Monthly
Days Formula = Actual/Actual
Loan Starting Date = 01-JAN-2020
Loan Maturity Date = 01-JUL-2020
EMI Repayment Starts from 01-FEB-2020
The Borrower request the lender to set the EMI Repayment Due Date to set to 5th of every month i.e. EMI Repayment to start from 05-FEB-2020.
The switching of EMI Repayment Date impacts in reducing the number of EMI Installments from 6 to 5.
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