Jose Alberto Hernandez created FINERACT-2117:
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Summary: In advance payment strategy: Early Repayment/Late
repayment Interest Calculation
Key: FINERACT-2117
URL: https://issues.apache.org/jira/browse/FINERACT-2117
Project: Apache Fineract
Issue Type: Improvement
Components: Loan
Reporter: Jose Alberto Hernandez
Progressive interest bearing loan product shall support: Early and late payment
situations where interest recalculation is enabled.
In case of an early payment (in advance payment) we have different strategies
that can be used.
One of these strategy should be:
- Adjust last, unpaid period
The rule is simple, in case of an in advance payment the EMI of the last,
unpaid period to be amended.
*Why last?*
We would like it to be reflected only at the end of the loan term, dont wanna
change the EMI of the rest of the periods.
*Why unpaid?*
It might happen the last installment was fully paid (if transaction processor
is set to allocate to the last installment the in advance, excess payment) and
we need to amend the last but one period in that case.
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