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https://issues.apache.org/jira/browse/FINERACT-2338?page=com.atlassian.jira.plugin.system.issuetabpanels:all-tabpanel
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Adam Saghy resolved FINERACT-2338.
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Resolution: Fixed
> Allow backdated interest rate change on Progressive loans
> ---------------------------------------------------------
>
> Key: FINERACT-2338
> URL: https://issues.apache.org/jira/browse/FINERACT-2338
> Project: Apache Fineract
> Issue Type: Improvement
> Affects Versions: 1.12.1
> Reporter: Adam Saghy
> Assignee: Adam Saghy
> Priority: Major
> Fix For: 1.13.0
>
>
> h3. Goal
> For Progressive loans we should allow backdated interest rate changes
> h3. Requirement Details
> # Interest rate can be modified from backdate any date from first
> disbursement date
> # Interest will be effected from the applied date itself.
> # Backdate can be done on already paid Installments as well
> # Repayment schedule will be recalculated with New EMI and Interest from the
> Interest applied schedule date
> ## Backdated PAID Installments and Unpaid/Partial Paid Installment EMI would
> be changed as per the new calculated EMI
> # Installments paid Interest amount will be reverse replayed as per the new
> Interest rate from the applied date
> ## Transactions will be reversed replayed if there is any change is
> allocations
> ## Accrual adjustments will done during reverse replay (during the COB
> process)
> # No of Installments will remain the same, only EMI and Interest would get
> affected
> # Backdated Interest modification allowed on the loan that is charged off
> -If the repayment that was made before the charge-off is reversed and
> replayed due to backdated Interest modification,then the accounting entry of
> the reversed transaction and replayed transaction should follow *standard
> accounting rules and not charge-off accounting rules*
> # Backdated interest modification allowed on the loan that is overpaid, and
> CBR is complete.
> -Fineract, any action that triggers the recalculation (ex: reversal of
> backdate transaction) on the CBR loan will result in treating CBR as a credit
> transaction during reverse-replay. Same logic to be applied if the backdated
> interest modification is allowed on CBR loan accounts
> # Asset transfer (externalization)
> ** If the repayment that was made before the asset owner change got reversed
> and replayed due to backdated Interest modification,
> Then, the accounting entry for the reversed transaction and replayed
> transaction include the tag of the current asset owner
> # Since backdated Interest modification is allowed on CBR/overpaid loans, we
> can keep the modification open on closed loans as well
> ** system will do the chronological reverse-replay when the backdated
> Interest is changed on closed loans, schedule and transaction will be
> allocated accordingly
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