[Mifos-users] Relcalculate Interest Defect on Holidays.

[Thomas Varghese]

Hi,

 

Have configured a loan product with declining balance, recalculate interest, and frequency for recalculate outstanding principal as “same as repayment period”. System is configured to have payments due on non working days to be moved to next working day. Found that the date when the principal is recalculated is not the same date as expected EMI / repayment date in case the repayment date is a holiday.

 

Loan configuration screen shot:

 

 

The repayment schedule comes like below: The interest computed of 3,682 is on the principal of 200,000 rather than 134,894, as the outstanding principal calculation was done based on principal on 12^th Feb and not 13^th Feb which is the date of EMI payment. Please refer to the screen shot below. Same happens for interest of 2,661 which is based on 134,894 rather than 69,262.

 

 

Thanks & Regards,

Thomas Varghese

KNAB finance advisors pvt ltd

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