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https://issues.apache.org/jira/browse/FINERACT-2413?page=com.atlassian.jira.plugin.system.issuetabpanels:all-tabpanel
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Bharath Gowda updated FINERACT-2413:
------------------------------------
Description:
Background and Details
Currently Re-amortization feature works only with zero interest rate loan
products, this ticket is to extend the feature to interest-bearing loan
products as well
**
h3. Re-Amortization Requirement Details
# Re-amortization should be enabled for Interest bearing Progressive loan
repayment strategy.
# Interest handling during re-amortization has following options.
*Default Behavior*
* System will re-calculate the actual Interest and EMI based on the new
principal balance.
* Overdue Interest(including Chargeback Interest) will be moved to 1st
installment after re-amortization date.
* Overdue Charge(including Chargeback Charge) will remain as is on the
existing installment.
* Fees/Penalties with Duedate after re-amortization will remain as is.
*Waive options*
* System will re-calculate the actual Interest and EMI based on the new
principal balance.
* Overdue Interest (including Chargeback Interest) will be waived-off.
* Overdue Charge (including Chargeback Charge) will remain as is on the
existing installments.
* Fees/Penalties with duedate after re-amortization will remain as is.
*Equal Overdue Interest Split*
* Outstanding Payable Interest(including Chargeback Interest) will be equally
split among future installments.
* Outstanding Charges/penalty will be equally split among new installments.
* Charge/Penalty with duedate after the re-amortization date will remain as is
on the existing installment
# Cannot be applied on charge-off and written-off loan accounts.
# N+1 Installment will remain as is.
# Backdated repayment or reversal are allowed- re-amortization will be
reversed and replayed accordingly.
# Re-amortization can be reversed - until it is the latest transaction on the
loan.
# Down-payment amounts will not have any impact from re-amortization
# Partial Paid amount on the installments before re-amortization will remain
as is, only unpaid amount will be re-amortized.
# Re-amortization cannot be applied after the maturity date
Example UCs are below
*Default Behaviour Example UCs*
[https://docs.google.com/spreadsheets/d/1Bi2AYSAV_QlRQWZFberara7KdX_U5T_nFhD88cwDEN4/edit?usp=sharing]
*Interest Waiver Example UCs*
[https://docs.google.com/spreadsheets/d/1SSPPIhNeBbSzPyrJQqsA7jzN5RorZgVKcsKjAykiCMU/edit?usp=sharing]
*Equal Overdue Interest Split*
[https://docs.google.com/spreadsheets/d/1lQhNOm9NWwb9cFysvG5R_ZHVK8d9rS6VWZnM0x1qWKY/edit?usp=sharing]
was:
Background and Details
Currently Re-amortization feature works only with zero interest rate loan
products, this ticket is to extend the feature to interest-bearing loan
products as well
*Requirement Details*
* The system should allow any type of transactions and features to work
normally on the re-amortization schedule.
* This behaviour is applicable for *interest bearing, interest
recalculation=true* loan accounts
* Credit transactions like disbursements, capitalised income allowed and works
normally on the re-amortization schedule
* Interest calculation will follow the re-amortization interest handling
setting
Possible scenarios to test
# Disbursements after Re-amortization date
# Capitalised income after Re-amortization date
# Interest pause on re-amortization loan
# Reschedule on re-amortization loan
# Re-amortization on Disbursement date
# Contract termination after re-amortization
# Write-off after re-amortization
# Charge-off after re-amortization
*NOTE:- All above feature schedule work normally on the re-amortization
schedule as well, Interest calculation will follow the re-amortization interest
handling setting*
> Extend Re-amortization feature to interest bearing loan products
> ----------------------------------------------------------------
>
> Key: FINERACT-2413
> URL: https://issues.apache.org/jira/browse/FINERACT-2413
> Project: Apache Fineract
> Issue Type: Improvement
> Affects Versions: 1.13.0
> Reporter: Bharath Gowda
> Priority: Major
>
> Background and Details
> Currently Re-amortization feature works only with zero interest rate loan
> products, this ticket is to extend the feature to interest-bearing loan
> products as well
>
>
> **
> h3. Re-Amortization Requirement Details
> # Re-amortization should be enabled for Interest bearing Progressive loan
> repayment strategy.
> # Interest handling during re-amortization has following options.
> *Default Behavior*
> * System will re-calculate the actual Interest and EMI based on the new
> principal balance.
> * Overdue Interest(including Chargeback Interest) will be moved to 1st
> installment after re-amortization date.
> * Overdue Charge(including Chargeback Charge) will remain as is on the
> existing installment.
> * Fees/Penalties with Duedate after re-amortization will remain as is.
> *Waive options*
> * System will re-calculate the actual Interest and EMI based on the new
> principal balance.
> * Overdue Interest (including Chargeback Interest) will be waived-off.
> * Overdue Charge (including Chargeback Charge) will remain as is on the
> existing installments.
> * Fees/Penalties with duedate after re-amortization will remain as is.
> *Equal Overdue Interest Split*
> * Outstanding Payable Interest(including Chargeback Interest) will be
> equally split among future installments.
> * Outstanding Charges/penalty will be equally split among new installments.
> * Charge/Penalty with duedate after the re-amortization date will remain as
> is on the existing installment
>
>
> # Cannot be applied on charge-off and written-off loan accounts.
> # N+1 Installment will remain as is.
> # Backdated repayment or reversal are allowed- re-amortization will be
> reversed and replayed accordingly.
> # Re-amortization can be reversed - until it is the latest transaction on
> the loan.
> # Down-payment amounts will not have any impact from re-amortization
> # Partial Paid amount on the installments before re-amortization will remain
> as is, only unpaid amount will be re-amortized.
> # Re-amortization cannot be applied after the maturity date
> Example UCs are below
>
> *Default Behaviour Example UCs*
> [https://docs.google.com/spreadsheets/d/1Bi2AYSAV_QlRQWZFberara7KdX_U5T_nFhD88cwDEN4/edit?usp=sharing]
> *Interest Waiver Example UCs*
> [https://docs.google.com/spreadsheets/d/1SSPPIhNeBbSzPyrJQqsA7jzN5RorZgVKcsKjAykiCMU/edit?usp=sharing]
> *Equal Overdue Interest Split*
> [https://docs.google.com/spreadsheets/d/1lQhNOm9NWwb9cFysvG5R_ZHVK8d9rS6VWZnM0x1qWKY/edit?usp=sharing]
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