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The last remaining interest rate methodology to add to meet feature parity with Mifos 2.x is declining balance with interest recalculation.
This was contingent on having the jobs scheduler to post interest.
From (http://mifos.org/functional-specifications/system-processing/interest-calculations-loan-accounts):
Declining Balance - Interest Recalculation gives user a new possibility in configuring and managing cash flow on loan accounts. The main role of Interest Recalculation is to control early and late payments of each installment. When loan repayment is on time, then Interest Recalculation works in the same way as normal Declining Balance interest rate type. Interest Recalculation can be mostly useful in cases such as: early payment with less than installment amount, due date payment with excess amount or late payment with equal installment amount.
In case when client pays late, an excess interest is charged from him on the principal he is late on, and for the number of days he is late in making the payment. This excess interest gets added to the next installment and will be shown along with the installment’s interest.
In case the client pays early, only the interest due till payment date is recovered from the payment applied. The remaining amount is allocated towards the principal payment and is reflected against the next installment’s principal.
Interest due till date is recovered first because the installment date for the installment in case of early payment is yet to occur. The installment will not be marked as completely paid in case of early payment. For the date of early payment to the installment date, interest will be calculated on the overall unpaid principal for thoes number of days.
In each cases it is necessary to count daily rate of interest:
id = (r/100)*(1/365)
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