"3 months, 3 monthly payments" sounds simple until the third payment is J$1 off and the borrower disputes it. Here is how schedules should be built, and the mistakes spreadsheets make.
The four plans Jamaican lenders sell
- Payday — one fortnight, single payment. Principal plus interest and fee, due on the next payday.
- Payday — one month, single payment. Same, one month out.
- Personal — monthly installments. 3, 6, 9 or 12 payments; the classic salary-deduction loan.
- Personal — fortnightly or weekly. Same term, more, smaller payments; suits borrowers paid that way and reduces arrears.
How the numbers are built
Total repayable = principal + interest (flat rate × term, or amortised) + processing fee. Divide by the number of installments, round to the dollar, and put the difference on the last installment so the schedule totals exactly. Every installment gets a due date from the disbursement date and the frequency; weekends and public holidays roll to the next business day if that is your policy.
Where spreadsheets go wrong
- Rounding drift — the schedule totals J$1–5 more or less than the contract.
- Due dates typed by hand — one wrong month and the aging report lies.
- Payments applied to the wrong installment — partial payments especially.
- Late fees added ad hoc, so two officers charge two different amounts.
What software should do
Generate the schedule at approval, print it into the contract, show it in the borrower portal, allocate each payment to the oldest open installment, add late fees by rule, and recalculate on early settlement. Ezy Loan Manager does exactly that — the schedule is one record, used everywhere.
Comparing systems? See the full web-based loan management software overview — features, tiers, self-hosted vs hosted.
See it working: Live Ezy Loan Manager sites: KWHIT Secure Financial · McMurray Financial. Ezy Loan Manager →
Frequently asked
Should the last payment be different?
Slightly, by cents or dollars — it absorbs the rounding so the schedule totals the contract exactly.
Flat rate or amortised?
Both exist in Jamaica; flat is simpler to explain, amortised is what banks use. The software should handle both.
What about early settlement?
Recalculate the outstanding on the day and, if your terms allow, rebate unearned interest.