All,
I have a scenario which I am finding difficulty in implementing in Mifos:
There are 2 loans 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 such a loan in Mifos. Ideally, the
Principal repaid should have been adjusted to the principal. But mifos
accounts prepayments against future interest, if I use "diminishing
balance" interest type.
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 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.
Anyone has any ideas on implementing Loan 2 in Mifos?
My guess is that Mifos will need 2 enhancements to support this:
a) Along with "daily declining balance with interest recalculation" (which
is what Mifos supports now), we need a "monthly declining balance with
interest recalculation"
b) We need "Principal Only Grace periods" to be allowed for interest type
"Declining balance with interest recalculation". Currently, Mifos does not
allow this. There is already a ticket for this at: MIFOS-4742
Is my analysis correct?
--
Thanks and Regards
Binny Gopinath Sreevas
+91-98861 39498
Skype: binny.gopinath
------------------------------------------------------------------------------
RSA(R) Conference 2012
Save $700 by Nov 18
Register now
http://p.sf.net/sfu/rsa-sfdev2dev1
_______________________________________________
Mifos-users mailing list
[email protected]
https://lists.sourceforge.net/lists/listinfo/mifos-users
