Hello. I'm working for a company in an emerging market that offers salary loans to employees through their employers. I'm looking for guidance on best practices on setting up Fineract for this use case.
Here's our scenario: 1) My company disburses the loan amount to the borrower (company employee) directly. 2) The employer deducts the appropriate repayment amount from the employee's salary on their payroll cycle. 3) Sometime after the payroll cycle, the employer sends us the sum of all these payroll deductions and a statement listing each employee's payroll deduction amount. If the employee has left this company, this information is also passed to us. These are the types of questions I have: 1. Should I use cash accounting or accrual accounting (periodic or upfront) for the loan product? 2. Since we do not find out if a borrower has made a loan repayment on its due date, how should we handle this time lag? Should I set a grace period in the loan product to the number of days before I expect the employer to send the funds and repayment info? 3. If a loan repayment is missed, should I back-date the late fee charges? If it's easier to speak about this, I'd be happy to have a call. Thanks in advance. Vinayak
