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https://issues.apache.org/jira/browse/FINERACT-636?page=com.atlassian.jira.plugin.system.issuetabpanels:comment-tabpanel&focusedCommentId=16850035#comment-16850035
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Zayyad A. Said commented on FINERACT-636:
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Hi [~kosgei],
Kindly share PR for this issue if you worked on it.
We are having a headache currently on how we can address a client need and this
feature is critical to them.
Thanks,
Zayyad A. Said
> 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.
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