Migrated over from MifosForge – final edit on September 15, 2015.
This is also true of items like agricultural loans where consumers money moves could be very volatile. Consequently returns such sectors are regular, unpredictable and sometimes less than those of this regular enterprises that are commercial which MFIs disburse loans. This necessitates the necessity for finance institutions to customize loans services and products, which enable more freedom because of the installment routine.
The adjustable Installment Loans function of Mifos X accommodates this flexibility by specifying:
For a loan item:
Minimal and maximum space that should always be current between installments (minimum is mandatory, however optimum is optional)
An optional minimum installment quantity
Allow installment due times to be modified
Allow installment amounts to be modified (either total installment or major portion may be modified)
Include extra installments
Validate the routine and calculations after making these modifications
Adjustable Installment could be specified for loans which have either flat interest calculation or diminishing stability based interest calculation
For the offered loan routine, individual may either modify principal or amount that is installmentand never both)
Consumer could make these adjustments just ahead of loan account approval.
Consumer may change the date of all of the installments.
Consumer may well not alter the quantities for the final installment.
Then the other will be automatically calculated by Mifos if the user enters an amount for either principal or installment amount.
An individual may specify adjustable installments in 3 situations:
1) Flat Interest Rate
2) Interest according to Diminishing Balance
3) Interest according to Diminishing Balance with Interest Recalculation
Situation 1: Flat Interest speed: Mifos will perhaps not recompute interest for every installment. Additionally the total interest will stay just like it had been if the original routine ended up being created.
User alters times: Date may not be before past installment date or following the installment date that is next. The date that is new accepted. Hardly any other modification.
Consumer alters major quantity: This quantity could be zero. The quantity is accepted. The installment amount is determined by Mifos as “Installment Interest” + the major quantity specified. The distinction in quantity (between newly specified principal and initial principal for the installment) would be similarly distributed among other installments principal which were 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,. In the event that quantity specified is lower than the interest quantity for the installment, then your interest is defined to the value. 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) is likely to be equally distributed among other installments (principal and interest) that have been perhaps perhaps not modified.
Situation 2 and 3: Interest according to Diminishing balance (without or with interest recalculation)
Consumer modifies dates: Date may not be before past installment date or following the next installment date. The date that is new accepted. The attention from the installments that follow the modified installment shall be recalculated according to major outstanding and quantity of times of each installment.
Consumer modifies major amount: This quantity could be zero. The total amount is accepted. The distinction in major amount (between newly specified quantity and initial quantity for the installment) will likely to be similarly distributed among other installments’ principals which were not modified. The interest regarding the installments that follow the modified installment should be recalculated according to major outstanding and wide range 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 on the installments that follow the modified installment shall be recalculated according to major outstanding and amount of times of each installment.
The attention recalculation should be on the basis of the configuration that is relevant of loan item as specified at: adjustable Installment Loans
For Loan Products
|Can configure adjustable installments||Flag denoting whether this loan product help adjustable installments||real or False. Blank w. Ould mean False.|
|Minimal space between installments||Integer value that denotes the minimal quantity of times that have to be current between any two installments for this loan item.|
|Maximum space between installments||Integer value that denotes the most quantity of times that have to be current between any two installments because of this loan item.|
|Minimal installment quantity||Integer value that denotes the minimum installment quantity.|