The current article describes a monthly installment’s general structure used in the system. The article also explains priorities according to which amounts are written off when the installment is repaid in full or in part.

Monthly payment including additional interest and fee charges

In the most general case, a current monthly installment can be comprised of the following:

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F - late fee charged according to a concluded agreement and calculated by formula (11) described in the article “Overdue Charges”.

Priorities for writing off amounts when payments are received

In case a received payment S covers a total amount of the current installment only in part (S < Total), it is necessary to establish priorities according to which amounts due will be written off. In the system, these priorities are established in the following order (from the highest to the lowest priority):

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5) Principal amount (the lowest priority).

Updating a monthly installment when a partial payment is made

If the total amount of the current installment is repaid in part, amounts of installment components are written off according to the established priority (refer to paragraph 2). Each installment component (refer to formula (1)) is repaid in full or in part, depending on a payment amount received. Each component of the current monthly installment is updated according to the following formula:

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s - partial payment amount used to repay outanding amounts of the current installment according to the priority scheme described in paragraph 2.

Partial repayment inside the grace period

If early payments are made inside a grace period (provided the grace period is set in a credit product), the payment schedule is not recalculated until the end of the grace period, irrespective of whether the Use Early Payments option is set in the credit product settings or not. All early payments firstly cover the interest and commission inside the grace period.

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