Currently, late penalty charges are applied automatically depending on chargeTime configuration if the loan is not closed. However, in following scenarios, we should be able to configure if late penalty should be applied or not:
1. Outstanding amount for Loan is within arrears limit
2. Loan is in NPA
As a workaround, these charges can be waived, but it reflect in accounting journals which is not desired.
Also, there are regulatory requirements stating sum of all charges levied on loan cant be greater than x%loan principal value.