Stephen,
This is a perfect question for the Users list, I¹m forwarding there.
There are two things to note about your loan
1. It is using a flat fee and I¹m guessing you are entering it into Mifos as
such. Mifos requires interest rate be entered as APR, so you will have to
calculate the yearly APR (see below)
2. Mifos currently doesn¹t support semi-monthly payments, so are you
scheduling the meetings to be every 2 weeks? Are you ok that in one or two
of those months, you will end up with 3 payments?
To calculate a yearly APR, you need to use the following formula:
(Interest Amount * Period of Calculation [360 or 365])
-----------------------------------------------------------------------
(Principal * Num of Weeks * 7)
So, if you have Mifos set to calculate over 365 days, you¹re formulate would
be
(40 * 365)
------------------- = .43452 (43.452%)
(200 * 24 * 7)
Two things to note while doing this
1. I entered 24 weeks as you are taking 12 payments bi-weekly, aka, 24 weeks
2. You will want to make sure Mifos supports at least three extra decimal
places for the interest calculation. I have found that not using the full
three digits can cause some calculation errors.
Let us know how it pans out
Ryan
On 3/12/10 7:59, "Stephen T. Kaufman" <skauf...@schawk.com> wrote:
> I have an MFI in Ghana that is switched their paper based loans all to their
> MIFOS site. They have a relatively simple loan calculation, but
> we are having trouble getting MIFOS to match what they are doing and I am
> looking for some help. I have attached what I want to do.
>
> Example:
>
> 200 Ghs Loan
> 20% total loan interest
> Term 6 months
> Payments Bi-weekly
>
> That means
>
> Principle 200
> Interest 40
> Total Owed 240
>
> Payments are 20 each until the 240 is payed back
> That¹s 12 payments.
>
> What is the closest to this that I can do in MIFOS?
> Anyone there know?
>
> Thanks
>
> Stephen Kaufman
> VP Global Business Assist
>
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--
Ryan Whitney
Mifos Technical Program Manager
rwhit...@grameenfoundation.org
Mifos - Technology that Empowers Microfinance (www.mifos.org)
Our mission is to enable the poor, especially the poorest, to create a world
without poverty.
<http://grameenfoundation.org/take-action/ingenuity-fund-challenge/>
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Try the new software tools for yourself. Speed compiling, find bugs
proactively, and fine-tune applications for parallel performance.
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