oleksii-novikov-onix commented on code in PR #5306: URL: https://github.com/apache/fineract/pull/5306#discussion_r2687433016
########## fineract-doc/src/docs/en/chapters/features/re-amortization.adoc: ########## @@ -0,0 +1,250 @@ += Loan Re-Amortization + +== Overview + +Re-amortization recalculates EMI (Equal Monthly Installment) amounts for remaining installments based on the outstanding principal balance as of the current business date. + +=== Example + +A customer has a 1000 EUR loan with 4 monthly installments of 250 EUR each. After missing the first two payments (500 EUR overdue), re-amortization redistributes this amount across the remaining 2 installments, resulting in 500 EUR per installment instead of 250 EUR - without changing due dates or adding new installments. + +=== Re-Amortization vs Re-Aging + +[cols="1,2,2",options="header"] +|=== +| Aspect | Re-Amortization | Re-Aging + +| Schedule structure +| Preserves existing installment count and due dates +| Creates new installments with user-defined count, start date, and frequency + +| User input +| Only interest handling type +| Start date, number of installments, period type, frequency, interest handling + +| Use case +| Redistribute overdue principal across existing future installments +| Restructure loan for customers in payment difficulty +|=== + +== Supported Loan Type + +Re-amortization is only available for: + +* **Progressive** loan schedule type +* **Advanced Payment Allocation** strategy +* For interest-bearing loans: **interest recalculation must be enabled** + +== Eligibility Criteria + +* Loan must be **active** (disbursed and not closed) +* Transaction date must be **before or on maturity date** +* Loan must **not** be charged-off +* Loan must **not** be contract terminated +* Only **one** re-amortization transaction is allowed per business day + +== Interest Handling Types + +For **interest-bearing loans**, re-amortization supports three strategies: + +[cols="1,3",options="header"] +|=== +| Type | Description + +| `DEFAULT` +| Standard behavior - outstanding principal is redistributed across remaining installments + +| `WAIVE_INTEREST` Review Comment: Done -- This is an automated message from the Apache Git Service. To respond to the message, please log on to GitHub and use the URL above to go to the specific comment. To unsubscribe, e-mail: [email protected] For queries about this service, please contact Infrastructure at: [email protected]
