Interest posting transaction

For interest posting enabled loans, an Interest Posting Transaction (IPT) is created on every interest posting date (specified on loan contract) to indicate the interest accrued till that date, which is due from the customer. For information about how to create interest posting enabled loans, refer to the explanation on Is Interest Posting Transaction Enabled and Interest Posting Frequency under Creating a Simple Product.

Payments for IPT enabled loans

When a payment is made for IPT enabled regular loans, the different components (Fees, Interest, and Principal) are satisfied as per the selected application payment mode. For date wise payment to work the Interest Posting Frequency must be equal to the Billing Frequency.

Example:

Let say 2 bills of due amount of 1000 each are generated with the following distribution between the components:

If a payment of 800 is made and the payment spread is FIP, then the bill components are satisfied as described in the following tables:

For spread wise payment application order

For date wise payment application order