Wilfred - And, to be clear, this is what I was referring to in my response about "tagging". By tagging a set of loans, all of the transactions associated with those loans end up in a "separated account" as long as you generate your reporting data from that selection criteria.
As Bharat mentioned, this asset externalization approach, which I spoke about for release 1.9 in January 2023 in a YouTube video doesn't fully cover the scenario you outlined but I think that if you combine this with the FUNDS concept I mentioned, that you could get very close and then you could see a much smaller gap in requirements for "new things". I could be wrong, but if the source of funds for a Loan Product can be a split percentage and then you use a specific tag for each of those in the portfolio, then you could use the percentage breakdown in the loan product definition as the source of information for an accounting treatment of the multi-party funded loan portfolio. The discriminator would be the tag, then the funds, or something like that. Again, if you could get a lot more specific about the actual use cases and specifics (like reporting requirements), with prioritization attached to specific functionali points, then you would find it easier to figure out what can be done now, or done with some level of effort. Right? Thanks, James Dailey On Fri, Sep 12, 2025 at 12:44 PM James Dailey <[email protected]> wrote: > Bharat - Thanks for sharing this information. It should be part of the > documentation that we offer at Fineract. > > Are these already on Jira tickets? If so, that's a good first step. > Then, do we move a summary to Asciidoc or to the Apache Fineract wiki "user > pages"? > > thanks, > James Dailey > > > > On Fri, Sep 12, 2025 at 10:05 AM Bharath Gowda <[email protected]> wrote: > >> Hi Wilfred and All, >> >> There is no specific feature available for co-lending but Fineract >> offers a new Functionality "Asset Externalization" which allows >> organizations to sell their loans(portfolios) to other Funders. >> But right now it is built only to support 100% of loan Sell and Buybacks >> but doesn't yet support the sharing of two owners to the same loan account. >> >> I believe the current "Asset Externalization" which is fully functional >> can be extended further to support owner sharing based on % as well. >> >> Attached links contains More Details of Asset Externalization for your >> reference >> >> >> https://drive.google.com/file/d/1G0yXqHx9u-3_3fAH8oeA8T5hHh9Ij4Kp/view?usp=drivesdk >> >> >> https://drive.google.com/file/d/1aNrj5ygssOic39J6gRARTdNV5d77ewAs/view?usp=drivesdk >> >> Regards, >> Bharath >> Lead Implementation Analyst | Mifos Initiative >> PMC Member | Apache Fineract >> Mobile: +91.7019635592 >> http://mifos.org <http://facebook.com/mifos> >> <http://www.twitter.com/mifos> >> >> On Thu, Sep 11, 2025, 5:13 PM Paul <[email protected]> wrote: >> >>> Co-lending - Split participations are relatively complex. >>> >>> Lender A may be invested at a 9% yield and be the servicer charging >>> serving fees. >>> They may keep late fees or split them based on ownership %. >>> Lender B may be at a 7.5% yield with Lender A retaining rate spread. >>> >>> Participations may have multiple investors . . . and of course the >>> customer's accounting is NOT impacted in any way by the investor or number >>> of investors. >>> Then there are multiple reporting and compliance requirements to >>> consider. >>> >>> I'm not familiar with what Fineract can support today, but IMO the >>> effort would need a dedicated group/team, servicing domain expert, months >>> of planning and requirement writing, then build and test. Testing would >>> take months and that is assuming +50% or more could be automated. >>> >>> Regards >>> Paul >>> >>> On Thu, Sep 11, 2025 at 1:38 AM Kigred Developer < >>> [email protected]> wrote: >>> >>>> @Bharath Gowda <[email protected]> >>>> I am suspecting you could be familiar with the co-lending subject. Do >>>> you think this qualifies as a new feature (or something worthy of being on >>>> a road map)?. >>>> The first time I interfaced with the term, it sounded exotic it sounded >>>> new but a couple of days later after discussing it with a colleague, it >>>> looks like something that can be accomplished by combining a couple >>>> existing features i.e (Accounting and a bit of automation if necessary). >>>> >>>> This is what I have so far understood about CO-LENDING: >>>> 1. BANK A issues a loan to a customer but this loan is not funded by >>>> BANK A alone. >>>> 2. There is another BANK B, that is providing the additional funds to >>>> make this happen (hence the term CO-LENDING). >>>> 3. To simplify it we can assume that BANK A took a loan themselves from >>>> BANK B (payable with interest). >>>> 4. The customer that took the may not even need to know that there is >>>> BANK B in the picture, his only obligation is to repay the loan they took >>>> with interest following the set installments. >>>> 5. Depending on the terms agreed between BANK A and BANK B, every time >>>> the customer makes a repayment to the loan they took, the outstanding >>>> balance will reduce and everything updated (normally), but additional >>>> accounting entries will be needed, that is BANK A settling their >>>> obligations to BANK B. >>>> >>>> That is all I believe there is to it, am I missing something? >>>> Regards >>>> Wilfred >>>> >>> >>> >>>
