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 could be very volatile. Consequently returns in such sectors are regular, unpredictable and sometimes less than those associated with regular commercial enterprises for which MFIs disburse loans. This necessitates the necessity for finance institutions to modify loans services and products, which provide for more flexibility utilizing the installment routine.
The adjustable Installment Loans function of Mifos X accommodates this flexibility by indicating:
For a financial loan item:
Minimal and gap that is maximum ought to be current between installments (minimum is mandatory, nonetheless optimum is optional)
An optional minimum installment quantity
Allow installment due times to be modified
Allow installment amounts to be modified total that is(either or major part is modified)
Include extra installments
Validate the routine and calculations after making these modifications
Requirements/User Stories
Business Rules
Adjustable Installment are specified for loans which have either flat interest calculation or diminishing stability based interest calculation
For a offered loan routine, individual may either alter principal or installment quantity (and never both)
Consumer will make these adjustments just just before loan account approval.
Consumer may change the date of all installments.
Consumer might not change the amounts 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 installments that are variable 3 situations:
1) Flat Interest Rate
2) Interest according to Diminishing Balance
3) Interest according to Diminishing Balance with Interest Recalculation
Scenario 1: Flat Interest Rate: Mifos will perhaps not recompute interest for every installment. And also the interest that is total stay exactly like it absolutely was if the initial routine had been produced.
Consumer alters times: Date can not be before past installment date or following the next installment date. The brand new date is accepted. Hardly any other modification.
Consumer alters major quantity: This quantity may 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) may be equally distributed among other installments principal which were perhaps maybe perhaps not modified.
Consumer 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 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 for both interest and principal) will likely be similarly distributed among other installments (principal and interest) which were perhaps maybe not modified.
Scenario 2 and 3: Interest according to Diminishing balance (without or with interest recalculation)
Consumer modifies times: Date is not before past installment date or following the next installment date. The brand new date is accepted. The attention regarding the installments that follow the modified installment will be recalculated according to major outstanding and quantity of times of each installment.
Consumer modifies amount that is principal This amount may be zero. The quantity is accepted. The real difference in principal quantity (between newly specified quantity and initial quantity for the installment) would be similarly distributed among other installments’ principals that have been not modified. The interest in the installments that follow the modified installment will likely to be recalculated considering major outstanding and quantity of times of each installment.
Consumer 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 will be recalculated according to major outstanding and amount of times of each installment.
The attention recalculation is supposed to be on the basis of the configuration that is relevant of loan item as specified at: adjustable Installment Loans
Characteristics
For Loan Products
| Attribute | Description | Notes |
|---|---|---|
| Can configure installments that are variable denoting whether this loan item help adjustable installments | real or False. Blank w. Ould suggest False. | |
| Minimal gap between installments | Integer value that denotes the minimal wide range of times that have to be current between any two installments with this loan item. | |
| Maximum space between installments | Integer value that denotes the most amount of times that must be current between any two installments with this loan item. | |
| Minimal installment quantity | Integer value that denotes the minimum installment quantity. |
