Penalties are issued only after 5 days. Tried it on couple of versions, but still getting the same result.
Can you confirm that this issue exists?
Can you please share the details in the Admin -> System ->Configuration page, Loan product details Charge details and account details, also attach screens shots if possible, to reproduce this issue.
screenshots of the process
I attached the screenshots to the JIRA case.
On Tue, Dec 9, 2014 at 9:45 AM, subramanya (JIRA) <firstname.lastname@example.org>