Hi everyone,

 

I was trying to define a loan Penalty for clients who don't have defaulted
(they didn't come to the meeting and make the scheduled loan repayments).

The penalty charged for this is 20% of the loan balance (including the
interest). 

 

In the system when I tried to define this, how ever the options that are
there are 

"Select the charge for the one time fees 

1.       Upfront

2.       Time of Disbursement

3.       Time of first loan repayment"

 

I selected upfront as my understanding of upfront is that it can be charged
whenever.

 

When I charge a client the penalty, I get an error "Applying this fee is
currently not supported since it would require recalculating the loan
schedule after payments have been made." 

 

 

If I use the Misc Penalty function the loan repayments scheduled are not
redistributed either.

950 is the amount of the Misc Penalty which is ( 20% charged on the loan)

The amount is included in the account summary but however, it doesn't appear
in the repayment schedule.

 

 

If I use Misc Fee, it appears in the repayment schedule and the account
summary. 

However the fee is added to the next installment that is due. Is it possible
for the fee to be redistributed amongst the scheduled payments that are due
such that if there are 13 months of scheduled loan repayments left, the
amount is distributed equally among those months 950/13~74. Such that 74 is
added to the installments that are due till the total amount of the loan is
paid. 

 

If one is defining a fee, that is not calculated i.e. doesn't have a
percentage e.g. 20%, one has to define the amount of the fee. My question is
how would one define a penalty?

 

 

 

 

Kind Regards,

 

Maina Wachira.

 


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