Migrated over from MifosForge – final edit on September 15, 2015.
Overview
- A user is allowed by this feature to
Background and strategic fit
This is also true of items like agricultural loans where consumers money moves can be very volatile. Consequently returns in such sectors are regular, unpredictable and often less than those for the regular enterprises that are commercial which MFIs disburse loans. This necessitates the necessity for banking institutions to modify loans services and products, which provide for more flexibility aided by the installment schedule.
The adjustable Installment Loans function of Mifos X accommodates this flexibility by specifying:
For the loan item:
Minimum and gap that is maximum must certanly be current between installments (minimum is mandatory, nonetheless optimum is optional)
An minimum installment amount that is optional
Allow installment due dates to be modified
Allow installment amounts to be modified (either total installment or principal part could be modified)
Include extra installments
Validate the routine and calculations after making these modifications
Requirements/User Stories
Business Rules
Adjustable Installment could be specified for loans which have either flat interest calculation or diminishing stability based calculation that is interest
For a offered loan routine, individual may either alter principal or amount that is installmentrather than both)
Consumer can make these adjustments just ahead of loan account approval.
Consumer may alter the date of the many installments.
Consumer may well not alter the quantities when it comes to final installment.
In the event that individual comes into a sum for either major or installment quantity, then your other is supposed to be immediately determined by Mifos.
An individual may specify adjustable installments in 3 situations:
1) Flat Interest Rate
2) Interest predicated on Diminishing Balance
3) Interest according to Diminishing Balance with Interest Recalculation
Situation 1: Flat Interest speed: Mifos will likely not recompute interest for every installment. Additionally the interest that is total stay exactly like it absolutely was once the original routine had been produced.
Consumer alters times: Date can not be before past installment date or following the next installment date. The date that is new accepted. No other modification.
Consumer alters major quantity: This quantity could be zero. The quantity is accepted. The installment quantity is determined by Mifos as “Installment Interest” + the amount that is principal. The real difference in quantity (between newly specified principal and initial principal for the installment) is similarly distributed among other installments principal that have been perhaps maybe not modified.
User alters installment amount: Amount may be zero too. Then the principal amount is calculated by Mifos as installment amount specified minus the “Installment Interest” if the amount specified is greater than the interest,. Then the interest is set to this value if the amount specified is less than the interest amount for the installment. The real difference in major quantity or interest quantity (between newly specified quantity and amount that is original the installment both for interest and principal) will undoubtedly be similarly distributed among other installments (principal and interest) which were maybe perhaps not modified.
Situation 2 and 3: Interest according to Diminishing balance (without or with interest recalculation)
Consumer modifies times: Date can not be before past installment date or following the next installment date. The brand new date is accepted. The attention from the installments that follow the modified installment will be recalculated centered on major outstanding and amount of times of each installment.
Consumer modifies amount that is principal This quantity could be zero. The total amount is accepted. The real difference in major quantity (between newly specified quantity and original quantity for the installment) will likely be equally distributed among other installments’ principals which were not modified. The interest from the installments that follow the modified installment should be recalculated according to major outstanding and quantity of days of each installment.
Consumer alters installment amount: Amount may be zero too. If the quantity specified is more than the attention, then your principal amount is determined by Mifos as installment amount specified without the “Installment Interest”. In the event that quantity specified is not as much as the attention quantity for the installment, then your interest is defined for this value while the difference between interest is either included with the second installment (if compounding is switched off) or included with major if compounded is fired up with this loan item. The attention in the installments that follow the modified installment will be recalculated predicated on major outstanding and quantity of times of each installment.
The attention recalculation should be in line with the appropriate setup regarding the loan item as specified at: adjustable Installment Loans
Characteristics
For Loan Products
| Attribute | Description | records |
|---|---|---|
| Can configure installments that are variable denoting whether this loan item help variable installments | real or False. Blank w. Ould suggest False. | |
| Minimal space between installments | Integer value that denotes the minimal wide range of days that have to be current between any two installments with this loan item. | |
| Optimum space between installments | Integer value that denotes the utmost quantity of days that have to be current between any two installments with this loan item. | |
| Minimal installment quantity | Integer value that denotes the minimum installment quantity. |