https://embarc-doc.lendapi.com/docs/charges#overdue-penalties

• A scheduled job called "Apply penalty to overdue loans" checks for installments that are past due plus the wait period.
• Supports recurring penalties (weekly/daily) via feeFrequency and respects global configurations (penalty-wait-period, backdate-penalties-enabled, grace-on-penalty-posting).
• Late fees are always marked as penalties; allocation rules typically prioritize them ahead of non-penalty fees.

I. Create a Late Fee

Click + Fee

• Enter the fee name
• Applied As: Overdue Fees
• Calculation Type: Choose either Flat or Percentage
• Mark as Exception Fee (Required)

II. Configuring Late Fees with a Loan Product

III. How to Test Late Fees

a. Create a loan account with the late fee loan product

To test late fees effectively, use daily frequency so you can observe the late fee applied the next day for any due repayment installments.

The late fee has been added based on the loan product's configuration.

b. Approve and fund the loan

The loan account is now active after disbursement.

c. Late fee will be applied the next day to each installment

First occurrence date = installment due date + 1 day (+ wait grace period if available)

d. Configuring late fee grace period

the grace period which is used to set the target to delay for the penalty.