When you use '% to use for calculating payment' field in the loan category configuration, payment amount is a percent of the balance, and does not follow the rules set by the loan product configuration.
  • If a % is entered, the system will still be required to run the loan through the normal amortization steps in order to establish the payment and related data points to populate the loan record.  This means that the maturity and review date will NOT be set according to your “# of payments” setting in the loan product configuration. Instead, the system will record what the maturity date had to be in order for your desired payment amount to be calculated, which may be further into the future than you expect. (If the loan had insurance/debt protection, that maturity date may be even further out.)  Or it may be less far in the future, depending on other considerations.