Hi Aman, Thanks for the detailed reply.
Regarding the existing functionality, Apache Fineract's core does not currently have support for a revolving line of credit. The Working Capital Loan is the closest existing product, and although its documentation describes it as revolving, it is essentially a zero-interest, discount-fee loan with sales-based repayments. Its current business logic also permits only a single disbursement. There is no credit limit or redraw functionality. I mentioned it as a design reference rather than something to build upon. I understand and agree with your and James's point. Without a mentor who can provide guidance from the functional side, this may not be a suitable fit for GSoC 2027. Unless someone with the relevant functional expertise is interested in mentoring the project, I'll set it aside as a GSoC proposal and treat the FSIP as a separate, longer-term initiative. I believe questions around client linkage, RBAC, security, and the overall functional design are important aspects that the FSIP should address before any implementation work begins. Thanks, Abhishek On Tue, 3 Nov 2026 at 10:09, Aman Mittal <[email protected]> wrote: > Hi Abhishek, > > Thanks for discussion, i think this functionality should not be the part > of the GSOC 2027 due to following reasons. One is that it requires a lot of > edge cases (e.g., new custom modules?) how should it be handled? Because it > requires someone who can mentor regarding use case perspective (Someone who > can guide based on functional requirements). and separate module. I do not > know if anyone willing to volunteer in terms of mentoring and then proof of > concept. (Already have new repos now for consumer facing and loan > origination) which extends the existing functionality with fineract as a > dependency. > > One thing is how will you link it. Client data is present in the core > fineract. How you will architect the plugin. and RBAC , flows, how will you > secure it? closer i can see it can be a separate module in loan > origination. in which we can access it. > > Another thing i want to confirm: is there any existing functionality for > this in core Fineract? "the Working Capital Loan documentation > <https://fineract.apache.org/docs/current/#_new_loan_product_type_working_capital_loan> > provides > a useful reference for the closest existing product." i think if there is > closest reference. If there is a close reference, it's better to keep it in > Fineract alone and not include it in GSOC, as this will give ample time for > FSIP or PMC discussion. > > Regards, > Aman > > On Mon, Nov 2, 2026 at 6:13 AM Abhishek Chaudhary < > [email protected]> wrote: > >> Hi all, >> >> As James suggested, I'm moving this discussion to the list. My original >> email about revolving loans (FINERACT-134) as a GSoC 2027 project and >> James's reply are below. >> >> Taking James's point that GSoC projects shouldn't keep adding >> functionality to core, I'd like to propose it as a plug-in instead: a proof >> of concept for a revolving line of credit built as a custom module ( >> https://fineract.apache.org/docs/current/#_custom_modules) in a separate >> public repository, with an FSIP drafted and discussed on its own. >> >> A few questions: >> 1. Would a revolving line of credit proof of concept as a custom module, >> outside core, be a suitable GSoC 2027 project? >> 2. The custom module docs describe modules as a proof of concept. Can >> they support a new product type today, or would part of the project be >> extending that mechanism? >> 3. Would anyone be interested in mentoring it? >> >> Thanks, >> Abhishek >> >> P.S. Thank you James for the detailed reply. I'd love to dig in and find >> out just how entertainingly complex the FSIP turns out to be. >> >> ---------- Forwarded message --------- >> From: James Dailey <[email protected]> >> Date: Mon, 2 Nov 2026 at 01:30 >> Subject: Re: GSoC 2027: Revolving Loans in Apache Fineract >> To: Abhishek Chaudhary <[email protected]> >> >> My perspective is that while this kind of functionality *may* be useful, >> I also think it should be part of a plug and play approach into Fineract. >> >> I also think our community should focus primarily on Security and >> Stability projects in Fineract code: paying down technical debt, adding >> tests, improving performance, and pruning functional areas. I think the >> *core* Fineract project should have less functionality out of the box, >> not more. That's my general and entirely personal take. GSOC projects >> that constantly "ADD" functionality into Fineract core have the side effect >> of making it more complex and potentially less maintainable. Proof of >> concepts (on outside public forks for a student or in separate branches or >> repos) are more welcome, in my view, than projects intended to go upstream >> into a system used in *Production* in a number of places. >> >> An FSIP for revolving line of credit is perhaps useful as a project in >> itself. So, I am certainly open to you proposing something for >> discussion. I'll be upfront and say that I may not be able to give much >> mentoring to this. Your short list is scratching the surface - the >> multitude of edge cases are "horrendously" or "endlessly" or >> "entertainingly" complex (depending on your point of view). >> >> - James >> >> >> >> On Fri, Oct 30, 2026 at 8:50 PM Abhishek Chaudhary < >> [email protected]> wrote: >> >>> >>> In the community chat, Adam mentioned that revolving loans would be a >>> useful addition to Fineract, with an FSIP once there is a high-level design. >>> >>> I'd like to propose revolving loans as a potential GSoC 2027 project and >>> get your feedback before going deeper into the design. >>> >>> There is already some relevant groundwork: >>> - FINERACT-134 <https://issues.apache.org/jira/browse/FINERACT-134> asks >>> for revolving line of credit products, and James, your comment there >>> suggests an FSIP and outlines the main design concepts. >>> - FSIP-010 >>> <https://fineract.apache.org/docs/current/#_fsip_010_revenue_based_working_capital_loan_product> >>> shows >>> how the Working Capital Loan product was proposed as a new loan product >>> type. >>> - the Working Capital Loan documentation >>> <https://fineract.apache.org/docs/current/#_new_loan_product_type_working_capital_loan> >>> provides >>> a useful reference for the closest existing product. >>> >>> I have some initial thoughts on what the high-level design would need to >>> address: >>> - Credit limits and available credit >>> - Billing cycles, statements and minimum payments >>> - Interest calculation on revolving balances >>> - How the new product fits alongside the existing loan and working >>> capital loan modules >>> >>> A few questions I'd appreciate your thoughts on: >>> 1. Do you think revolving loans would be a suitable GSoC 2027 project? >>> 2. Would it make sense for me to work on the FSIP and high-level design >>> over the coming months, so that the GSoC project can focus on implementing >>> the first increment? >>> 3. What would be a sensible scope for that first increment? For example, >>> a basic credit line supporting drawdowns, repayments and available credit. >>> >>> >>> Getting the design right will require considerable research on my part, >>> so I wanted to get your thoughts on the direction and scope before >>> investing further in it. >>> >>> Thanks, >>> Abhishek >>> >>>
