Set max interest amounts per period
We have introduced a new method to cap the amount of interest charged on a loan. You can now cap interest at an allotted amount on a per-period basis, giving you more flexibility to reward borrowers who make on-time payments—without penalizing them for late payments.
How can I use it?
You can use this new feature to designate the maximum amount of interest that can accrue on a loan during a specified period. When using this setting, interest accrues at the normal rate until the cap is met. Then, it stops accruing interest for the rest of the period.
Example ($0.10 daily interest rate with a $0.37 interest cap):
Day 1: $0.10 daily | $0.10 total
Day 2: $0.10 daily | $0.20 total
Day 3: $0.10 daily | $0.30 total
Day 4: $0.07 daily | $0.37 total
Day 5: $0.00 daily | $0.37 total
Interest cap logic resets at the start of every period. If no interest cap exists for a specific period, interest will accrue uncapped.
Where can I find it?
In the LMS, you can enable this setting by navigating to an individual loan account and then viewing Account Setup > Setup Terms > Advanced Configuration > Max Interest Amount > Set Per Period.
Through LoanPro’s API, you can retrieve or configure the maximum interest cap for a given period. Use the endpoint: https://loanpro.simnang.com/api/public/api/1/odata.svc/Loans({loanId})?$expand=LoanPeriodMaxInterest
How can I test it?
1. Configure Loan Settings Create a new loan and select Between Transactions for the Interest Application setting.
2. Enable Max Interest Per Period View Account Setup > Setup Terms > Advanced Configuration > Max Interest Amount, then click the Set Per Period checkbox.
3. Generate and Verify Period Amounts Select Save & Calculate to auto-generate period entries. Then, navigate to Account Setup > Setup Tools > Max Interest Per Period to view the Max Interest Per Period table.
- Make any changes you want (edit, add, or delete values) and confirm the new limits are applied per period.
4. Activate the Loan and Confirm Interest Caps Activate the loan and check Reports > Transactions to verify the forecasted interest amount aligns with the max amounts defined in the Max Interest Per Period table.
- Interest accrued in a period can be lower than the defined amount but never higher.
Learn more about the per-period interest cap setting in LoanPro’s Knowledge Base or by viewing our API Documentation.