|
Currently for the loan product, user may specify one of the following:
a) Decimal Places
b) Currency in Multiples of
If both are specified, system only considers Decimal places (and ignores Currency in Multiples of) when generating repayment schedule.
Also, interest and principal are rounded-off based on these 2 configurations and the installment is the sum of the rounded off interest and principal values.
Due to this at times there can be differences in the installment amount between installments.
Suggested changes:
================
Add the following configurations for loan products (these cannot be overridden at account level):
a) Decimal places - this will be used for internal computations and for the
The principal and Interest Split will be shown with these many decimal places.
b) Installment may be specified by user: (Yes or No)
c) Installment in multiples of:
Modify the behavior of loan accounts as follows:
-
"Interest for each installment" will be computed and shown as per decimal places
-
If Installment may be specified by user - then an "Installment Amount" field is displayed for which user may enter a value when submitting loan application (value entered will be validated against the "installment in multiples of" rule)
-
If user does not enter the installment amount or "If Installment may be specified by user" is set to false for the product, then system calculates the installment amount and rounds it off as per "Installment in multiples of", If this field is not specified, then no rounding-off is done.
-
This installment amount remains constant for all installments other than the last installment.
-
Principal portion of an installment will be computed as "Installment Amount" - "Interest for each installment"
-
If user enters an installment installment amount as a value larger than system computed installment amount - then the no of installments in the repayment schedule may decrease. Mifos will not do anything here.
-
If rounding-off based on "Installment in multiples of" results in an installment amount that is larger than system computed installment amount - then the no of installments in the repayment schedule may decrease. Mifos will not do anything here.
-
The last installment will be adjusted to ensure that:
-
for flat loans - total interest matches the interest percentage of principal amount
-
any additional principal outstanding is collected along with the last installment - hence there is a possibility that the last installment can be quite different from other installments if "Installment in multiples of" is specified as a value that can impact the installment amounts a lot
Examples for Flat and Declining balance based installments attached.
|
