Interest and Calculation Rules

Interest results in remoteEaze depend on selected basis and method, not just the annual rate value.

What controls calculations

The main controls are:

• day-count basis
• account-condition calculation method
• loan amortization method
• penalty mode and penalty base source

Day-count and interest basis

Supported bases:

• ACTUAL_360
• ACTUAL_364
• ACTUAL_365
• ACTUAL_ACTUAL
• THIRTY_360
• THIRTY_E_360

The selected basis controls how period fractions are calculated from dates.

ACTUAL_360, ACTUAL_364, and ACTUAL_365 use actual calendar days with fixed denominators.

ACTUAL_ACTUAL is date-aware and can use leap-year denominators where applicable.

THIRTY_360 and THIRTY_E_360 use normalized 30-day-month conventions.

Account-condition interest calculation methods

Account-condition methods:

• FLAT_RATE
• BAND
• LEVEL

FLAT_RATE applies one rate to the full effective balance.

BAND selects one tier based on current balance and applies that tier rate to the full balance.

LEVEL applies tier rates progressively by slice of balance.

Loan amortization methods

Loan repayment policies currently expose:

• EQUAL_INSTALLMENT
• TRUE_DAILY

EQUAL_INSTALLMENT targets fixed installments, subject to rounding.

TRUE_DAILY is period-date-aware and recalculates using each period's actual fraction.

Actual/Actual in loans

ACTUAL_ACTUAL behavior differs by amortization path:

• EQUAL_INSTALLMENT uses a long-run average denominator for the fixed-installment path
• TRUE_DAILY uses date-aware period fractions, so leap-year periods can use 366

Penalty basis and penalty base source

Penalty modes include:

• disabled
• flat
• percentage

For percentage penalties, the base source can target:

• schedule principal
• total principal outstanding
• total overdue outstanding
• total overdue principal
• total amount outstanding

These options are configured through admin setup screens and drive accrual, schedule, and posting behavior.