Loan product terms

This is step 3 of the create wizard. Related fields share a row: min / default / max principal, min / default / max repayments, and the same pattern for interest.

Principal

Enter a default principal, and optionally a minimum and maximum. The default must sit inside that range. Officers who open a loan see this default and the allowed range; they can only change the amount if settings allow the matching override.

Repayments

• Number of repayments — default, with optional min and max.
• Repay every — the interval and unit together, for example every 1 month, or every 2 weeks.
• Repayment start — from disbursement or from the submitted date, depending on the options Fineract offers.

Grace periods on the settings step cannot be as long as (or longer than) the number of repayments.

Interest — fixed

Leave floating rate off to set a nominal interest rate per period, with optional min/max, and an interest rate frequency (per month, year, and so on). Officers who open a loan see that rate and the allowed range.

Interest — floating

Turn floating rate on when the product should track a published floating rate plus a differential.

Fineract requires all of the following; Bankayo will not let you continue without them:

• Interest type declining balance (set on settings).
• Interest recalculation enabled (also on settings).
• A floating rate from Organization → Floating rates. The field stays empty until at least one active rate exists.
• A differential, plus min / default / max lending differentials that stay in order.

Equal amortization cannot be combined with a floating rate.

On the client loan wizard, officers set the differential (inside the product min / default / max) instead of a nominal rate. If the product allows floating calculation, they can also choose whether this loan tracks later published rate changes. Create the published rate under Organization → Floating rates first.