Binny
Just to give an approximate interest amount i calculated with 31 days.
There are 2 ways of interest calculations here. But i think it will be over
kill on mifos to use the first option and i prefer to use 2nd option.
However, both gives same interest value.
I. Computing interest for balance days in the month using 365 days formula
Interest Amount: 85.00
10000 *2% / 28 (February) * 2 days(Period: 27/02/2011 to 28/02/2011) ====
14.00 with roundoff
10000 *2% / 31 (March) * 11 days(Period: 01/03/2011 to 11/03/2011)) ====
71.00 with roundoff
OR
2. 365 days
10000 *24% / 365 * 13 (Period: 27/02/2011 to 11/03/2011)) === 85.47
*Regarding using of "Declining Balace - Interest Recalculation" *
Using this option the principal component amount varies month on month.
Widely accepted and used feature is Equal Principal installment which is in
use for all these years and it is difficult to convince customer to change
the loan product definition to "Declining Balance - Int Recal".
Customer on an average disburse around 2K to 3K fresh loans on monthly
basis (Base with 25K to 30K members), applying the adjustment will be
tedious & prone to issues, it is an additional load on loan officers and
finance teams, which will directly impact the employees efficiency.
Idea of computerization is to improve the efficiency of employees and to
avoid manual transactions as much as possible.
Thanks
Shiva
On Tue, Nov 15, 2011 at 7:59 PM, Keith Woodlock <[email protected]>wrote:
> Hi,
>
> Sorry yes I missed out on the fact you were disbursing on 27th of
> month so client has loan principal in hand only two weeks when first
> installment arises.
>
> As Binny said there is a 'Declining Balace - Interest Recalculation'
> method that works using 'daily frequency' for interest calculation. It
> doesnt support months. So there would need to be some small
> development to support the interest calculated for first installment.
>
> To allow for disbursing on day different to 'meeting date between
> client and loan officer' you need to run mifos in LSIM mode which in
> the latest version of mifos allows you to choose a 'repayment
> schedule' for your loan that is not contrained by the 'meeting date
> frequency'
>
> Keith.
>
> On Tue, Nov 15, 2011 at 2:20 PM, Binny Gopinath
> <[email protected]> wrote:
> >
> > The correct solution, in my opinion, would be to enable Principal only
> grace
> > period for "declining balance - interest recalculation" interest type.
> This
> > does a daily-reducing-balance based interest calculation.
> >
> > But I suspect that it may not solve your issue fully.
> > As the interest calculated by this interest type depends on the number of
> > days in the month and hence may not be exactly 2% of outstanding amount
> for
> > all months.
> >
> > How did you compute the interest as 83/-?
> > is it 10,000 * 2% / 365 * 13 ?
> > This gives a value greater than 83.
> > Or it 10,000 * 2% / 31 * 13 --> this gives a value close to 83. But why
> 31?
> >
> > A very manual (and un-refined) workaround in Mifos would be to define the
> > loan product with 11 installments with 1 grace period (principal +
> > interest). And after disbursement, manually apply a charge that is equal
> to
> > the first partial-period interest. The amount of the charge will need to
> be
> > externally computed or calculated by a custom report.
> >
> > Thanks
> > Binny
> >
> >
> >
> > On Tue, Nov 15, 2011 at 7:19 PM, HT Team <[email protected]>
> wrote:
> >>
> >> Keith
> >> Interest should be calculated only for the period Loan disbursement date
> >> to subsequent meeting date i.e., 27-02-2011 to 12-03-2011 with interest
> >> amount as 83/- approximately for 13 days.
> >> 200/- interest which you mentioned is exactly for 1 month which will be
> a
> >> burden on members.
> >> Thanks
> >> HT
> >>
> >>
> ------------------------------------------------------------------------------
> >> 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
> >>
> >
> >
> >
> >
> >
> >
> ------------------------------------------------------------------------------
> > 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
> >
> >
>
> --
> You received this message because you are subscribed to the Google Groups
> "Mifos Users" group.
> To post to this group, send email to [email protected].
> To unsubscribe from this group, send email to
> [email protected].
> For more options, visit this group at
> http://groups.google.com/group/mifosusers?hl=en.
>
>
--
*Regard,*
*HT Team*
*www.hugotechnologies.com*
Phone : +91 40-65141823 | Skype: hugo.technologies
------------------------------------------------------------------------------
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
