Company Loans - Flat Interest Rate

[Former Member]

Hi Experts,

I am in deed to seek your suggestions on below requirement.

We have a requirement to configure the Loans (IT 0045), the scenario is we need to calculate the interest rate of flat basis.

eg:  If an employee takes loan for Rs. 1000 and the interest rate is 5% flat for 60 months, then the monthly repayment is Rs. 16.66 + 4.16 (interest) = 20.83.  I was tried to check through standard configuration, but it is calculating on Diminising interest rate.

Could you please advise me configure Flat interest rate ? 

Thanks in Advance,

Raj.

[Former Member]

Hi Raj,

In the IT 0045 while giving the interest condition give Individual Interest rate as 5%

system will automatically take this interest rate.

for loan configuration check this document:

screen shot for reference:

Regards.

[Former Member]

Dear Praneeth,

Thanks for your prompt revert, This interest rate is calculating on deminising balance method, but our requirement is Flat rate as explained in the example.

Thanks in Advance,

Raj

[Former Member]

Dear Experts,

Could you please advise how to write PCR for Flat Interest rate for the Loan paid to employeee for the below business example.

eg:  If an employee takes loan for Rs. 1000 and the interest rate is 5% flat for 60 months, then the monthly repayment is Rs. 16.66 + 4.16 (1000*5/100 = 50 /12 =  4.16 per month) = 20.83 (monthly fixed repayment for 60 months).

Thanks in advance.,

Raj.

[Former Member]

Hi Raj,

is your issue solved ?

[Former Member]

Dear Praneeth Kumar,

Thanks for follow up. The issue is not solved, but we did work around.

Regards,

Raj