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Processing of addition of interest to principal when monthly repayment is past due

Ex If 20,000 yen is the outstanding borrowing amount on July 27 and an automatic payment is not made for the monthly repayment amount on August 27 as well as on September 27.

  • 1

    The addition of interest to principal on August 27 is: 20,000 yen × 15% × 31 days / 365 days ≈ 254 yen, and it is added to the outstanding borrowing amount. After the addition of interest to principal, the outstanding borrowing amount becomes 20,000 yen + 254 yen = 20,254 yen.

  • 2

    If the monthly repayment amount is not paid on August 27 and repayment is due on the next monthly repayment date September 27, interest is calculated as follows: 20,200 yen (any amount under 100 yen is rounded down) × 15% × 31 days / 365 days ≈ 257 yen. The 257 yen is added to the outstanding borrowing amount. When the next monthly repayment date comes, the outstanding borrowing amount is: 20,254 yen + 257 yen = 20,511 yen.

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