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https://issues.apache.org/jira/browse/FINERACT-1052?page=com.atlassian.jira.plugin.system.issuetabpanels:comment-tabpanel&focusedCommentId=17150606#comment-17150606
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Francis Guchie commented on FINERACT-1052:
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RESTRICTING OVER PAYMENT OF LOANS
* *Actors*
SACCOs, FSAs, VSLAs, MFIs.
It is common in East Africa and part of west Africa for Financial Service
Providers to restrict over payment of loans. Especially for the institutions
that do not take Savings or are not allowed to hold clients’ savings
(compulsory or voluntary.
*
*Stakeholders*
IDT Labs supporting ACTB savings & Loans, LAPO Micro Finance and Advance Smart
Micro Finance
*
*Primary Actors*
ACTB Savings & Loans, Advance Uganda, Credify Uganda, Khasakh Sacco
*
*Scenarios*
These MFIs give out loans to groups and individuals yet they allow for
prepayments / early payments of loans. The enables or stimulates good financial
behavior / good credit history for such a client. A good credit score means the
client is eligible to move from a group member status to an individual member
status.
With a loan cycle counter in place the loan officer looks at the number of
closed loans (payment in time, early payment or payment on time
Settings in Mifos Currently
When a loan is over paid, it moves from status “Active” to Status “Overpaid”
and overpaid loan is not a closed loan so it remains “open”
When overpaid, there is 1 option, transferring the overpaid amount to a savings
account or may be to another loan.
* *The Ideal Situation*
Over payment should be an option left to the Financial Institution to have it
enabled or set to disabled at configuration
See image below
Using the example below
If a user tries to pay more than 5.8million, then the system should reject the
excess payment amount
The reverse should be true is the global configuration is set to allow over
payments
[^RESTRICTING OVER PAYMENT OF LOANS.docx]
> Over Payment of loans is Allowed by Default
> --------------------------------------------
>
> Key: FINERACT-1052
> URL: https://issues.apache.org/jira/browse/FINERACT-1052
> Project: Apache Fineract
> Issue Type: New Feature
> Components: Loan
> Affects Versions: 1.3.0, 1.4.0
> Reporter: Francis Guchie
> Priority: Critical
> Labels: newbie
> Fix For: 1.5.0
>
> Attachments: Config - Disable Loan Over Payment.jpg, RESTRICTING OVER
> PAYMENT OF LOANS.docx
>
>
> Impacted versions: all MifosX versions including latest build
> Steps to reproduce:
> Select any loan in MifosX and make a payment over and above the dues
> Current behavior:
> MifosX will accept this
> Expected behavior:
> We create a global setting where its optional for super user to set allow or
> restrict users from over paying loans -- This can be done at global
> configurations =>
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