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http://mifosforge.jira.com/browse/MIFOS-5293?page=com.atlassian.jira.plugin.system.issuetabpanels:comment-tabpanel&focusedCommentId=71561#comment-71561
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Binny Gopinath Sreevas commented on MIFOS-5293:
-----------------------------------------------
Need a facility to support an MFI that may decide to waive a portion of the
outstanding principal due to any reason. The reason could be customers
inability to re-pay fully or adjustment of amounts due to fluctuations in
foreign exchange (MFI works in a country where loans are given in multiple
currencies, but is recorded in Mifos in a single currency) etc. Frequently, the
MFI also wants to waive the over-due interest without closing the account (i.e.
the member will continue to re-pay the loan).
For example,
- a loan was given for 30,000 for six months, monthly repayments with 5 months
principal-only grace period.
- At the end of the 3rd month, the loan has 30,000 principal oustanding and
3,000 interest over-due.
- The MFI decides to waive the interest and waive 5,000 of the principal too.
- The member is expected to pay interest on 25,000 for 4th and 5th months and
then repay the 25,000 on the 6th month.
The workaround in Mifos is to close the loan (closed-written off). And then
open a new loan for 25,000. This will make the accounting entries to go all
wrong (write-offs will add up to 33,000) and also cash balance will not be
right as per accounting (25,000 will be treated as a cash disbursement).
> Waive amount feature
> --------------------
>
> Key: MIFOS-5293
> URL: http://mifosforge.jira.com/browse/MIFOS-5293
> Project: mifos
> Issue Type: New Feature
> Reporter: George Iberia
> Labels: community, fina2
> Fix For: Mifos Backlog
>
>
> Need facility to waive the interest or a portion of the principal of a loan
> Such a facility should have a separate security permission associated with it.
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