[ https://issues.apache.org/jira/browse/FINERACT-636?page=com.atlassian.jira.plugin.system.issuetabpanels:all-tabpanel ]
Santosh Math updated FINERACT-636: ---------------------------------- Issue Type: Improvement (was: Bug) > Penalty Charged On Overdue Matured Loan > --------------------------------------- > > Key: FINERACT-636 > URL: https://issues.apache.org/jira/browse/FINERACT-636 > Project: Apache Fineract > Issue Type: Improvement > Components: Loan > Reporter: Santosh Math > Priority: Major > Labels: gsoc, p1 > > Project Overview > Overview > This feature will allow MFIs to charge overdue loans only after the loan has > matured based on the current outstanding balance. > Background and Business Need > Mifos currently only supports overdue installment charges. So daily > repayments are penalised everyday if they are partly paid, and weekly > repayments are penalised every week if they are partly paid and so on. > Overdue penalties are currently chargeable on every overdue installment BUT > it should also support penalties charged only on OVERDUE LOANS (i.e loans > that have past maturity), separately without penalising every overdue > installment. > In the event that you have a fee frequency on your penalty then it should > compound the charge on % BALANCE OUTSTANDING. Meaning on a fee frequency of 3 > months for example - the 1st months charges the balance. The 2nd months > charges the balance plus 1st penalty fees. Then the 3rd month charges the > initial balance plus penalty for 1st month and penalty for 2nd month. (Charge > Calculation = %Loan Amount + Interest + Penalties which is the same as > %Outstanding Balance > Since these charges apply after the loan has matured it would be ideal to > have a feature where we can tell it to stop charging penalties. Currently the > penalties are applied inifinitely. > 90% of MFIs in Africa and in Sri Lanka are using this penalty charge formula > on paper but cannot implement it automatically on Mifos. The reason why it is > so popular is because most MFIs provide daily and weekly loans to vendors and > micro SMEs. So they cannot afford to charge their clients everytime they miss > or partly pay an installment everyday in a loan period. As we strive to > maintain our position as a financial inclusion technological platform. > Project Supporters(s) > Zimbabwe - 6 Microfinance organisations > Sri Lanka - 1 MFI > Kenya - 1 MFI > Tanzania - 1 Mifos Consultancy firm > TAAT Consutancy - Ed Tshuma > Skyburg Systems - Myself > Project Details > Assigned contributors > Ed Tshuma > Venon Mapfunde > Project Status > We would like to have the project complete within 14 days > Work required involve adding charge time type to the penalty fees > Calculating charges on Total Outstanding Balance and not on missed > installment. > Attached is a design of how we imagine the module will like after development. > Additional Information > Mailing list discussions - > https://groups.google.com/d/msg/mifosdeveloper/fK-XfVVZXzs/PjGyXb7XAAAJ > We understand that Musoni have already got this feature developed. -- This message was sent by Atlassian JIRA (v7.6.3#76005)