Migrated over from MifosForge - final edit on September 15, 2015.
Overview
- This particular aspect permits a person to
Background and strategic fit
This is especially valid of items like agricultural loans where consumers money flows could be very volatile. Consequently returns such sectors are regular, unpredictable and sometimes less than those associated with regular enterprises that are commercial which MFIs disburse loans. This necessitates the necessity for finance institutions to personalize loans items, which enable more freedom aided by the installment routine.
The adjustable Installment Loans function of Mifos X accommodates this flexibility by specifying:
For the loan item:
Minimal and maximum space that should really 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 total that is(either or major portion are 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 interest calculation
For the offered loan routine, individual may either alter principal or amount that is installmentand never both)
Consumer can make these adjustments just ahead of loan account approval.
Consumer may change the date of all of the installments.
Consumer might not alter the quantities when it comes to installment that is last.
In the event that user gets in a quantity for either major or installment quantity, then other is likely to be immediately determined by Mifos.
An individual may specify installments that are variable 3 scenarios:
1) Flat Interest Rate
2) Interest centered 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 single installment. Plus the total interest will stay just like it had been once the initial routine ended up being created.
Consumer alters times: Date is not before past installment date or following the next installment date. The new date is accepted. Hardly any other modification.
Consumer alters amount that is principal This quantity could be zero. The quantity is accepted. The installment amount is determined by Mifos as "Installment Interest" + the amount that is principal. The real difference in amount (between newly specified principal and principal that is original the installment) will undoubtedly be similarly distributed among other installments principal which were maybe maybe perhaps not modified.
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". Then the interest is set to this value if the amount specified is less than the interest amount for the installment. The distinction in major quantity or interest quantity (between newly specified quantity and amount that is original the installment for both interest and principal) is similarly distributed among other installments (principal and interest) that have been perhaps perhaps maybe not modified.
Situation 2 and 3: Interest predicated on Diminishing balance (without or with interest recalculation)
Consumer modifies times: Date can not be before previous installment date or following the installment date that is next. The new date is accepted. The attention in the installments that follow the modified installment will be recalculated according to major outstanding and number of times of each installment.
Consumer modifies amount that is principal This quantity could be zero. The quantity is accepted. The real difference in major quantity (between newly specified quantity and amount that is original the installment) will likely be similarly distributed among other installments' principals which were not modified. The interest regarding the installments that follow the modified installment may be recalculated according to major outstanding and amount of times of each installment.
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 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 in the installments that follow the modified installment will be recalculated according to principal outstanding and amount of times of each installment.
The attention recalculation would be on the basis of the appropriate setup of this 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. | |
| Minimum space between installments | Integer value that denotes the minimal wide range of times that should be current between any two installments with this loan item. | |
| Optimum space between installments | Integer value that denotes the utmost quantity of times that must be current between any two installments because of this loan item. | |
| Minimal installment quantity | Integer value that denotes the minimum installment quantity. |
