Re: [Mifos-users] Error on loan schedule creation

[Jeff Blue]

Greetings Dusmant, You may be assuming that the interest rate is for the period of the loan. The interest rate entered in Mifos is per year, APR. So, if you are entering 10% interest rate, that is 10% for each 52 weeks. That is the same as 9.61% for 50 weeks (0.10 * 50 / 52) which yields the 19.2 interest you got from Mifos. To get 10% interest for the 50 weeks you need to enter 10.4% interest (0.10 * 52 / 50) into Mifos. That should yield the 20 interest payment you're looking for. The rest of the difference is probably rounding. You might check your rounding settings in Mifos. We had the same trouble with loan interest vs APR at SEM. Jeff Blue working with SEM (sem-fund.org) Emily Tucker wrote: Hi Dusmant,   In the future, please send your emails only to the mifos-users mailing list. This will ensure prompt response to your question.   Mifos can be configured to define interest bearing days as 360 or 365.  As you note, it cannot be set to 50 weeks (ie, 350 days) See: http://www.mifos.org/developers/wiki/ConfiguringMifos#accounting   In order to get the loan schedule to match your current repayment amounts, you’ll need to enter a slightly higher interest rate in your loan product definition.  Many MFIs who use a 50 week installment cycle (Grameen Koota, Enda, etc) have been able to find the right “adjusted” interest rate to get Mifos to match their original repayment schedule.   I’m not sure if there’s a standard excel formula you can use for this conversion.  Perhaps others in the community might be able to provide this….   Cheers, Emily.     From: Dusmant Kumar [mailto:dusm...@adhikarindia.org] Sent: Thursday, February 26, 2009 1:48 AM To: Developer; mifos-users@lists.sourceforge.net Subject: [Mifos-users] Error on loan schedule creation   Dear all,   I am facing a problem while creating weekly loans.   The loan amount is Rs. 10,000 with 50 weeks repayments. So each installment amount should be 200+20=220 (pri+int) but in mifos it shows 199.8+19.2=219. The same problem is happening for 7000 or any loan amount.    The cause of the problem I noticed is due to the year is taken as 365 days, i.e. 52 weeks.   But I require the above desired installment. Please help how to resolve this issue. -- Thanks & Regards ------------------------------------------------------ Dusmant Kumar Sahu Programmer Executive MIS Adhikar Microfinance Pvt. Ltd. Corporate Office Bhubaneshwar, Orissa. Cell: 9338430676 e-Mail: dusm...@adhikarindia.org http://sites.google.com/a/adhikarindia.org/dusmant/ ------------------------------------------------------------------------------ Open Source Business Conference (OSBC), March 24-25, 2009, San Francisco, CA -OSBC tackles the biggest issue in open source: Open Sourcing the Enterprise -Strategies to boost innovation and cut costs with open source participation -Receive a $600 discount off the registration fee with the source code: SFAD http://p.sf.net/sfu/XcvMzF8H _______________________________________________ Mifos-users mailing list Mifos-users@lists.sourceforge.net https://lists.sourceforge.net/lists/listinfo/mifos-users

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-OSBC tackles the biggest issue in open source: Open Sourcing the Enterprise
-Strategies to boost innovation and cut costs with open source participation
-Receive a $600 discount off the registration fee with the source code: SFAD
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