Rounding Repayment Schedule
Depending on the number of installments, some loan amounts end up with a small difference when divided by the installments.
There are two different options for dealing with those cases:
1. No Rounding
If you choose no rounding, when there is a discrepancy between the loan amount to be disbursed and the total balance after rounding, Mambu will show you a warning message asking you to either adjust the loan amount or the number of installments, until you do so the loan cannot be created.
2. Round Remainder into Last Repayment
If you choose to Round Remainder into Last Repayment, Mambu will automatically add the discrepancy amount to one of those repayments.
Example:
Suppose you create a loan of USD1000 with 3 installments. This would result in a repayment schedule with installments of USD333.33 which would sum a total of USD999.99 instead of USD1000. In this case, if you had chosen one of the rounding options, the cent that is missing would be added to the last repayment.
If you have a question about how anything works or have come across something you haven't seen explained here, get in touch with our community of fellow users and Mambuvians where someone will lend a hand.
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