Hi, I added link to this discussion to issue https://mifosforge.jira.com/browse/MIFOS-5636.
Regards, Lukasz On 07/27/2012 06:11 PM, Keith Woodlock wrote: > All, > > Sahadev gave a very good example of why flexibility is essential around Loans. > > The https://mifosforge.jira.com/browse/MIFOS-5636 issue is merely > around in what order should the components of a loan installment such > as principal due, interest due, penalty due, fee due, etc be paid off > when a loan transactions/repayment is processed. > > The title of the issue and its summary are too simple of a view of the > problem domain. Its not just about, pay penalties and fees first, then > interest, then principal. Because I may want the order of components > being paid off to be different in different scenarios - so its not > merely a configuration issue. > > The following cases are entirely relevant to the way an installment is paid > off: > - Is the loan repayment a payment an early/advance payment? If so > what should happen if anything? > - Is the loan repayment an overpayment of whats due for this > installment? if so what happens to the overpaid amount? > - Is the installment in question 'late or overdue'? if so what way > should the loan repayment pay of overdue amount? > - Is the loan 'written off' and the repayment a recovery payment? > - plus lots more > > As Sahadev alluded to, the answers to these questions are different > from region to region, country to country and mfi to mfi and are > typically led by the country's regulatory requirements or the > microfinance model employed by the MFI. Whats important is that the > software or MIS be able to change/customise or support > change/customization in an easy manner. > > It just happens to be something I am working on this week in the > 'mifos x' project. At this time i would describe it as been an ability > to support different repayment strategies where we will implement a > number of common solutions out of the box with the software and allow > for change/customization where these dont meet with local needs. > > Keith. > On Fri, Jul 27, 2012 at 4:40 PM, Ed Cable <[email protected]> wrote: >> Adhikar had this same issue so it's clearly major priority for users in >> India due to the revised National Banking regulations. >> >> Jakub - could you provide an estimate of this feature - I know it's a very >> major one. >> >> Ed >> >> >> On Fri, Jul 27, 2012 at 6:20 AM, Lukasz Chudy <[email protected]> wrote: >>> Hi Sahadev, >>> >>> Some time ago I created improvement issue for the ability to configure the >>> payment order https://mifosforge.jira.com/browse/MIFOS-5636. If you like >>> this approach then please add Vote to this issue and label of your >>> organization. >>> >>> Best regards, >>> Lukasz >>> >>> >>> >>> On 07/18/2012 08:10 AM, Sahadev Kunapuli wrote: >>> >>> Appropriating payment towards past due interest or past due principal is a >>> matter each institution's priority and as per the country's regulatory >>> requirements. Here is an illustration : >>> >>> >>> Assumptions : 1) Loan loss provisioning as per the regulator's guidelines >>> = 30 % of bad loans. 2) Repayment can be appropriated as per >>> institution's choice. >>> >>> 3)Total Over due Amount : Rs. 10000 4) Total overdue interest Rs. 1800 >>> /- 4) Rate of Interest 18 % p.a. 5) Amount paid by the member Rs. >>> 1800/- >>> >>> Scenario - I : Entire amount appropriated towards interest . Loan loss >>> provision = Rs. 30 % of Rs. 10000 = 3000 . Less interest earned = 1800. Net >>> income to institution is Rs. - 2200 (loss) >>> >>> Scenario - II : Entire amount adjusted towards overdue principal. Loan >>> loss provision - (10000-1800) * 30 % .= (8200* 30 %)= Rs 2460 ( loss) >>> >>> >>> >>> The income recognition and loan loss provisioning requirements of the >>> country's regulator is a key factor in prioritising repayments. in many >>> countries. interest cannot be booked in a loan account till the overdue >>> amount is cleared . Hence it is better to give the option to prioritise as >>> part of MIFOS software so that each institution can adopt the practice best >>> suited to it as per local conditions. >>> >>> >>> >>> >>> -- >>> SAHADEV K >>> MOBILE : 91-9010001015 >>> >>> >>> >>> >>> >>> >>> ------------------------------------------------------------------------------ >>> Live Security Virtual Conference >>> Exclusive live event will cover all the ways today's security and >>> threat landscape has changed and how IT managers can respond. Discussions >>> will include endpoint security, mobile security and the latest in malware >>> threats. http://www.accelacomm.com/jaw/sfrnl04242012/114/50122263/ >>> >>> >>> >>> _______________________________________________ >>> Mifos-users mailing list >>> [email protected] >>> https://lists.sourceforge.net/lists/listinfo/mifos-users >>> >>> >>> >>> >>> >>> ------------------------------------------------------------------------------ >>> Live Security Virtual Conference >>> Exclusive live event will cover all the ways today's security and >>> threat landscape has changed and how IT managers can respond. Discussions >>> will include endpoint security, mobile security and the latest in malware >>> threats. http://www.accelacomm.com/jaw/sfrnl04242012/114/50122263/ >>> _______________________________________________ >>> Mifos-users mailing list >>> [email protected] >>> https://lists.sourceforge.net/lists/listinfo/mifos-users >>> >> >> ------------------------------------------------------------------------------ >> Live Security Virtual Conference >> Exclusive live event will cover all the ways today's security and >> threat landscape has changed and how IT managers can respond. Discussions >> will include endpoint security, mobile security and the latest in malware >> threats. http://www.accelacomm.com/jaw/sfrnl04242012/114/50122263/ >> _______________________________________________ >> Mifos-users mailing list >> [email protected] >> https://lists.sourceforge.net/lists/listinfo/mifos-users >> > ------------------------------------------------------------------------------ > Live Security Virtual Conference > Exclusive live event will cover all the ways today's security and > threat landscape has changed and how IT managers can respond. Discussions > will include endpoint security, mobile security and the latest in malware > threats. http://www.accelacomm.com/jaw/sfrnl04242012/114/50122263/ > _______________________________________________ > Mifos-users mailing list > [email protected] > https://lists.sourceforge.net/lists/listinfo/mifos-users > ------------------------------------------------------------------------------ Live Security Virtual Conference Exclusive live event will cover all the ways today's security and threat landscape has changed and how IT managers can respond. Discussions will include endpoint security, mobile security and the latest in malware threats. http://www.accelacomm.com/jaw/sfrnl04242012/114/50122263/ _______________________________________________ Mifos-users mailing list [email protected] https://lists.sourceforge.net/lists/listinfo/mifos-users
