Dear Jain,
Can you try the same using more the period interval , for example:
the principle amount for the loan is 1,000,000
rate is : 20%
start term: 1.11.2015
end of term: 1.11.2016
frequency of the interest: monthly and interest is capitalized
The update rule is: Regular/Due date at start of the period.
Then check cash flow tab is it shows all the interest amount for the whole contract posts at the beginning of the contract.
Regards,
Ahmed Samir