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Mifos Hudson Jira Plugin User commented on MIFOS-5182: ------------------------------------------------------ Integrated in !http://ci.mifos.org/hudson/images/16x16/blue.png! [head-master-secondary #544|http://ci.mifos.org/hudson/job/head-master-secondary/544/] MIFOS-5182: fix principal balance Keith Woodlock : Files : * appdomain/src/main/java/org/mifos/accounts/loan/business/LoanScheduleEntity.java * appdomain/src/main/java/org/mifos/application/servicefacade/LoanAccountServiceFacadeWebTier.java * appdomain/src/main/java/org/mifos/accounts/loan/business/LoanBO.java * appdomain/src/main/java/org/mifos/accounts/business/AccountBO.java > Declining balance with interest recalculation - need to support monthly option > ------------------------------------------------------------------------------ > > Key: MIFOS-5182 > URL: http://mifosforge.jira.com/browse/MIFOS-5182 > Project: mifos > Issue Type: Improvement > Reporter: Binny Gopinath Sreevas > Priority: Major > Fix For: Release 2.2.2 > > Attachments: SampleLoanCalculation_MonthlyReducing_V02.xlsx, > SampleLoanCalculation_MonthlyReducing.xlsx > > > Currently "declining balance with interest recalculation" does a daily > interest recalculation. There is a need to have an option to do a "monthly > interest calculation". Detailed requirement and example below: > There are 2 loans (with monthly installments) which are handled as follows in > real-life: > Loan 1: > February-2011 - Disbursed - 10,00,000 at 2% per month > March-2011 - Interest paid - 20,000 > April-2011 - Interest paid - 20,000 > May-2011 - Loan repaid paid with interest - 10,20,000 > I schedule this as a loan product with interest type as "diminishing > balance" and with 2 "principal-only grace" periods. This works fine in Mifos. > Loan 2: Is similar, except that the customer does some prepayments. > May-2011 - New Loan disbursed - 40,00,000 at 2% per month > June-2011 - Interest paid - 80,000 > July-2011 - Interest paid - 80,000 > August-2011 - Interest paid - 80,000, Principal repaid 5,00,000 > (principal outstanding is now 35,00,000) > September-2011 - Interest paid - 70,000, Principal repaid 10,00,000 > (principal outstanding is now 25,00,000) > October-2011 - Interest paid - 50,000, Principal repaid 15,00,000 > (principal outstanding is now 10,00,000) > Nov-2011 - Interest paid - 20,000 > > I am not able to configure Loan-2 in Mifos. Ideally, the pre-payments should > be adjusted to the principal. But mifos accounts prepayments against future > interest, if I use interest type as "diminishing balance". > > If I use the interest type as "diminishing balance with interest > recalculation", Mifos computes the interest based on daily-reducing balance. > So the interest due for Feb, will be less than interest due for April. Which > will not help implementing the above scenario. And with this type of > interest, Grace periods are not supported. So it is impossible to implement > such a loan in Mifos. > My understanding of the solution in Mifos, will need 2 enhancements: > a) Along with "daily declining balance with interest recalculation", we need > a "monthly declining balance with interest recalculation" > b) We need "Principal Only Grace periods" to be allowed for interest type > "Declining balance with interest recalculation". Currently, Mifos does not > allow this. There is already a ticket for this at: MIFOS-4742 -- This message is automatically generated by JIRA. If you think it was sent incorrectly, please contact your JIRA administrators: http://mifosforge.jira.com/secure/ContactAdministrators!default.jspa For more information on JIRA, see: http://www.atlassian.com/software/jira ------------------------------------------------------------------------------ All the data continuously generated in your IT infrastructure contains a definitive record of customers, application performance, security threats, fraudulent activity, and more. Splunk takes this data and makes sense of it. IT sense. And common sense. http://p.sf.net/sfu/splunk-novd2d _______________________________________________ Mifos-issues mailing list Mifos-issues@lists.sourceforge.net https://lists.sourceforge.net/lists/listinfo/mifos-issues