Hi Shiva
Ah, you're asking something different than what i had thought. this
question is about how interest is calculated when there are overdue
payments.
If you are using the interest rate type declining balance - interest
recalculation, then interest is accumulated for every day that the payment
is late.
In your example, on March 15, the client would be due the following:
Jan 15 principal plus original interest plus interest on the principal for
every day it is late (2 months late)
Feb 15 principal plus original interest plus interest on the principal for
every day it is late (1 month late)
March 15 principal plus interest
....
I think you can actually see this in mifos and test it out. If you create
this loan, on the loan account page, you can go to view repayment schedule
and enter a future date to see what would be due. (I can't test this out
right now but I can look later)
Kay
On Dec 15, 2011 5:31 AM, "HT Team" <i...@hugotechnologies.com> wrote:
> Hi Chau
>
> What i understood from your comments that mifos will post interest on the
> over due amount only upon closing a loan account...is my understanding
> correct ?
>
> My Scenario is below (Pl. Note: Repayment amount is approximate amount,
> please do not get confused with the repayment amount in example.)
>
> Loan Amount: 4000
> Loan installments: 4
> Interest type: Decline-Interest recalculate
>
> Repayment schedule
>
> Repayment Date Amount Interest Amount paid
> 05-11-2011 1000.00 80.00 1080.00
> 05-12-2011 1000.00 80.00 1080.00
> 05-01-2012 1000.00 80.00 Not Paid
> 05-02-2012 1000.00 80.00 Not Paid
>
> In the above example, customer has not paid for last 2 installments and i
> want to charge him interest from the subsequent meeting dates i.e, from
> 15th,March 2012.
> Loan officer does a follow-up with customer every following month /
> meeting dates on the repayment for the over due amount but due to financial
> constraint customer does not pay.
> As a policy organization charges interest till the loan is considered for
> NPA (Non performing Assets) i.e.., 3 months from the over due or loan last
> installment date.
>
> Does mifos charge interest for subsequent 3 months after the last
> repayment date as per the schedule?
>
> Thanks
> Shiva
>
>
>
>
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