Overdue Interest & Penalty Calculation

Users can view and manage any overdue interest or penalties for business loans in PrismERP. If a loan installment is not paid by its due date, the system automatically calculates the overdue interest based on the interest rate and the number of days the payment is delayed.

In addition to overdue interest, any penalty charges configured for late payments are also applied. These charges are recorded in the system and reflected in the loan balance, ensuring that the borrower’s outstanding amount is always accurate. Users can review these calculations and generate vouchers to post the penalty or overdue interest to the ledger, keeping financial records complete and up to date.