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http://mifosforge.jira.com/browse/MIFOS-5182?page=com.atlassian.jira.plugin.system.issuetabpanels:comment-tabpanel&focusedCommentId=72435#comment-72435
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Lukasz Chudy commented on MIFOS-5182:
-------------------------------------
I changed the issue description since 'monthly declining balance interest
recalculation' is no longer needed to achieve second scenarion from the
description.
As it was mentioned in comments, only Principal Pre-payment option should be
added for "Declining Balance" and "Declinging Balance - Equal Principal
Installment" interest types.
> Add Principal Pre-payment option for "Declining Balance" and "Declinging
> Balance - Equal Principal Installment" interest types
> ------------------------------------------------------------------------------------------------------------------------------
>
> Key: MIFOS-5182
> URL: http://mifosforge.jira.com/browse/MIFOS-5182
> Project: mifos
> Issue Type: Improvement
> Reporter: Binny Gopinath Sreevas
> Assignee: Paweł Gesek
> Priority: Blocker
> Labels: community, fina2
> Fix For: Margaret H, 2.3.2
>
> Attachments: SampleLoanCalculation_MonthlyReducing_V02.xlsx,
> SampleLoanCalculation_MonthlyReducing.xlsx
>
> Original Estimate: 4 weeks
> Remaining Estimate: 4 weeks
>
> There is a need to have an option to do a "monthly interest calculation".
> Detailed requirement and example below:
> There are 2 loans (with monthly installments) which are handled as follows in
> real-life:
> Loan 1:
> February-2011 - Disbursed - 10,00,000 at 2% per month
> March-2011 - Interest paid - 20,000
> April-2011 - Interest paid - 20,000
> May-2011 - Loan repaid paid with interest - 10,20,000
> I schedule this as a loan product with interest type as "diminishing
> balance" and with 2 "principal-only grace" periods. This works fine in Mifos.
> Loan 2: Is similar, except that the customer does some prepayments.
> May-2011 - New Loan disbursed - 40,00,000 at 2% per month
> June-2011 - Interest paid - 80,000
> July-2011 - Interest paid - 80,000
> August-2011 - Interest paid - 80,000, Principal repaid 5,00,000
> (principal outstanding is now 35,00,000)
> September-2011 - Interest paid - 70,000, Principal repaid 10,00,000
> (principal outstanding is now 25,00,000)
> October-2011 - Interest paid - 50,000, Principal repaid 15,00,000
> (principal outstanding is now 10,00,000)
> Nov-2011 - Interest paid - 20,000
>
> I am not able to configure Loan-2 in Mifos. Ideally, the pre-payments should
> be adjusted to the principal. But mifos accounts prepayments against future
> interest, if I use interest type as "diminishing balance".
>
> If I use the interest type as "diminishing balance with interest
> recalculation", Mifos computes the interest based on daily-reducing balance.
> So the interest due for Feb, will be less than interest due for April. Which
> will not help implementing the above scenario. And with this type of
> interest, Grace periods are not supported. So it is impossible to implement
> such a loan in Mifos.
> Mifos should be enhanced and Principal Pre-payment option for "Declining
> Balance" and "Declinging Balance - Equal Principal Installment" interest
> types should be added.
> The following remarks should be implemented:
> a) The "Principal Re-payment" link should be visible only for "Declining
> Balance" and "Declinging Balance - Equal Principal Installment" interest
> types (this does not make sense for both "flat" and "declining balance with
> interest recalculation" interest types)
> b) We need to handle the situation where user applies a payment for interest
> on a date and then on the same date does a "Principal Repayment" too.
> c) We need to handle the situation where principal-repayment is done on a
> non-meeting date (i.e. on a date on which there is no entry in the
> loan_schedule table).
> d) We need to handle the situation where for a six month loan, only interest
> was paid for 8 months and then the principal was repaid. I.e. the duration of
> the loan went beyond what was entered into loan_schedule table by Mifos.
> e) View all account activity should show entry for "Principal Re-payments"
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