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 especially valid of items like agricultural loans where consumers money moves could be very volatile. Consequently returns such sectors are regular, unpredictable and frequently less than those of this 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 freedom aided by the installment routine.
The adjustable Installment Loans function of Mifos X accommodates this flexibility by indicating:
For the loan item:
Minimal and maximum space that must be current between installments (minimum is mandatory, nonetheless optimum is optional)
An optional minimum installment amount
Allow installment dates that are due be modified
Allow installment amounts to be modified (either total installment or major part may be modified)
Include extra installments
Validate the routine and calculations after making these modifications
Requirements/User Stories
Business Rules
Adjustable Installment might be specified for loans which have either flat interest calculation or diminishing stability based calculation that is interest
For the offered loan routine, individual may either alter principal or installment quantity (and never both)
Consumer could make these adjustments just just before loan account approval.
Consumer may alter the date of all of the installments.
Consumer may well not change the quantities for the installment that is last.
Then the other will be automatically calculated by Mifos if the user enters an amount for either principal or installment amount.
The consumer may specify adjustable installments in 3 situations:
1) Flat Interest Rate
2) Interest according to Diminishing Balance
3) Interest predicated on Diminishing Balance with Interest Recalculation
Situation 1: Flat Interest speed: Mifos will likely not recompute interest for every installment. Plus the interest that is total stay exactly like it absolutely was once the initial routine had been produced.
User alters times: Date can’t be before past installment date or following the next installment date. The date that is new accepted. No other modification.
Consumer alters amount that is principal This amount may be zero. The quantity is accepted. The installment quantity is determined by Mifos as “Installment Interest” + the amount that is principal. The huge difference in quantity (between newly specified principal and initial principal for the installment) will soon be similarly distributed among other installments principal which were perhaps maybe not modified.
Consumer 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 huge difference in major quantity or interest quantity (between newly specified amount and amount that is original the installment for both interest and principal) would be similarly distributed among other installments (principal and interest) which were maybe not modified.
Situation 2 and 3: Interest according to Diminishing balance (without or with interest recalculation)
Consumer modifies times: Date can’t be before past installment date or following the installment date that is next. The brand new date is accepted. The attention on the installments that follow the modified installment shall be recalculated centered on payday loans in maryland major outstanding and wide range of times of each installment.
Consumer modifies amount that is principal This amount may be zero. The quantity is accepted. The real difference in major quantity (between newly specified amount and amount that is original the installment) will soon be similarly distributed among other installments’ principals which were not modified. The interest regarding the installments that follow the modified installment are going to be recalculated centered on major outstanding and amount of times of each installment.
User alters installment amount: Amount could 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 and the difference in interest is either added to the next installment (if compounding is turned off) or added to principal if compounded is turned on for this loan product if the amount specified is less than the interest amount for the installment. The attention from the installments that follow the modified installment shall be recalculated predicated on major outstanding and quantity of times of each installment.
The attention recalculation is supposed to be on the basis of the appropriate setup regarding the loan item as specified at: adjustable Installment Loans
Characteristics
For Loan Products
| Attribute | Description | records |
|---|---|---|
| Can configure adjustable installments | Flag denoting whether this loan item help adjustable installments | real or False. Blank w. Ould suggest False. |
| Minimal space between installments | Integer value that denotes the minimal quantity of times that should be current between any two installments because of this loan item. | |
| Optimum gap between installments | Integer value that denotes the most amount of times that have to be present between any two installments because of this loan item. | |
| Minimal installment quantity | Integer value that denotes the minimum installment quantity. |