Loan enhancement for IN

The loan enhancement for IN should be available from SAP Enhancement Package 5 for SAP ERP 6.0. onward. 

check the page for the link below

Loans Enhancement – India – Payroll India (PY-IN) – SAP Library

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progressive interest calculation

To calculate interest, the corresponding interest rate is applied to the loan amount that falls within each range. Finally, the interest amounts are summed to determine the total interest accrued.

 

 

Example

The interest rates for the following value ranges are respectively 0, 3%, 5% and 10%:

  • 0-INR 10,000
  • INR 10,000 – INR 30,000
  • INR 30,000 – INR 50,000
  • >INR 50,000

The interest for a loan with principle 80,000 would be calculated as follows:

Interest = (10,000 x 0%) + (20,000 x 3%) + (20,000 x 5%) + (30,000 x 10%) = INR 4,600

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