Interest Calculation Logics

Once a credit transaction is initiated, the complex process of applying interest logic begins. Acknowledging the varied regulatory frameworks across different countries, MO Manage offers the flexibility to compute interests in accordance with different logic to comply with regional requirements.

Interest Calculation Methods

When using MO Credit Card Core, there are different ways to calculate interest. You can choose between Ordinary Interest APR, Average Daily Balance, Default Interest, and Penalty APR. You can customize your approach by setting Closing Dates and Grace Periods. Additionally, you can use the Recalculate Charges feature to review APR and payments, and set limits on APR changes to follow rules. To ensure financial prudence, you can also cap Charges and fees. Furthermore, MO Manage offers French Amortization Logic for Installment Loans credits. Choose the method that best suits your financial situation and the applicable rules.

Method	Description
Ordinary Interest APR	Sets any interest rate in the APR format and calculates interests based on the principal debt amount.
Average Daily Balance	Calculates interests using the average daily balance formula.
Default Interest	Computes and applies penalty interest over the total debt, excluding recurring charges like annual fees.
Penalty APR	Based on product configurations, increases the ordinary APR when a user misses payments, either indefinitely or until the issuer deems a return to the original APR appropriate.
Closing Dates	Enables the creation of multiple closing dates, ranging from at least 2 to a maximum of 6.
Grace Period	Sets a specific number of days between the closing date and the maximum payment date.
Recalculate Charges	Retroactively calculates the APR and all payments within a specific timeframe for an account.
Limit APR Movements	Constrains increases and decreases of the APR to align with regulatory requirements.
Cap Charges & Fees	Caps the maximum number of total charges or specific fees to a predetermined amount. For instance, fees and charges cannot exceed the total debt in a billing period.
French Amortization Logic	Implements the French amortization program, specifically applicable for Installment Loans credits.