Thanks for the clarifications James, Barath, Paul. Regards. Wilfred On Fri, 12 Sept 2025, 22:50 James Dailey, <[email protected]> wrote:
> 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 >>>>> >>>> >>>> >>>>
