Hi Sahadev,
Some time ago I created improvement issue for the ability to configure
the payment order https://mifosforge.jira.com/browse/MIFOS-5636. If you
like this approach then please add Vote to this issue and label of your
organization.
Best regards,
Lukasz
On 07/18/2012 08:10 AM, Sahadev Kunapuli wrote:
Appropriating payment towards past due interest or past due principal
is a matter each institution's priority and as per the country's
regulatory requirements. Here is an illustration :
Assumptions : 1) Loan loss provisioning as per the regulator's
guidelines = 30 % of bad loans. 2) Repayment can be appropriated as
per institution's choice.
3)Total Over due Amount : Rs. 10000 4) Total overdue interest Rs.
1800 /- 4) Rate of Interest 18 % p.a. 5) Amount paid by the
member Rs. 1800/-
Scenario - I : Entire amount appropriated towards interest . Loan
loss provision = Rs. 30 % of Rs. 10000 = 3000 . Less interest earned =
1800. Net income to institution is Rs. - 2200 (loss)
Scenario - II : Entire amount adjusted towards overdue principal.
Loan loss provision - (10000-1800) * 30 % .= (8200* 30 %)= Rs 2460 (
loss)
The income recognition and loan loss provisioning requirements of
the country's regulator is a key factor in prioritising repayments. in
many countries. interest cannot be booked in a loan account till the
overdue amount is cleared . Hence it is better to give the option to
prioritise as part of MIFOS software so that each institution can
adopt the practice best suited to it as per local conditions.
--
SAHADEV K
MOBILE : 91-9010001015
------------------------------------------------------------------------------
Live Security Virtual Conference
Exclusive live event will cover all the ways today's security and
threat landscape has changed and how IT managers can respond. Discussions
will include endpoint security, mobile security and the latest in malware
threats. http://www.accelacomm.com/jaw/sfrnl04242012/114/50122263/
_______________________________________________
Mifos-users mailing list
[email protected]
https://lists.sourceforge.net/lists/listinfo/mifos-users
------------------------------------------------------------------------------
Live Security Virtual Conference
Exclusive live event will cover all the ways today's security and
threat landscape has changed and how IT managers can respond. Discussions
will include endpoint security, mobile security and the latest in malware
threats. http://www.accelacomm.com/jaw/sfrnl04242012/114/50122263/
_______________________________________________
Mifos-users mailing list
[email protected]
https://lists.sourceforge.net/lists/listinfo/mifos-users
