Hello Devs,

 

In loan products configuration there is an option to define overdue days for
a loan to be classified as Non-Performing Asset (NPA).

 



 

In my understanding and from my knowledge of the industry, a loan that has
been classified as NPA doesn't attract any more charges or penalties and the
FI normally does effort to recover what's due so that the loan can either be
reclassified as Performing or Closed. I want to believe this was also the
main reason of having this option in Mifos X.

 

To my surprise, the system still charges interest & penalties even when a
loan has been overdue for more days than what has been specified as NPA at
the product level.

 

Is this a bug or there is a configuration missing which should stop further
accruals?

 

I have observed this in both versions 17.07.01 and 18.03.01 and the
behaviour is just the same.

 

Could anyone who has successfully manage to get this feature working for
them come forward and advise how they configured the product.

 

If it's a bug, how can we get it resolved? We have a number of our clients
struggling with penalty accruals and waiving the same is a very tedious
exercise as they have to do it one by one.

 

Regards;

 

*******

Zayyad A. Said | Chairman & C.E.O

 

Cell No.: +254 716 615274 | Skype: zsaid2011

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