Hi James,

I have added the solution design and requirement to the JIRA ticket
https://issues.apache.org/jira/browse/FINERACT-1926 .
As mentioned these are solution design and requirements only and don't
contain the user manual or configuration details yet ( The document work is
in progress as part of the Fineract Capabilities documents that we are
building as part of Pepper Soup project)

So, I am not sure about moving these to  Asciidoc or to the Apache Fineract
wiki "user pages as of now.

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 Sat, Sep 13, 2025 at 1:15 AM 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
>>>>
>>>
>>>
>>>

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