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Posted to dev@fineract.apache.org by Lionel Raymundi - Poincenot <li...@poincenot.com> on 2017/04/11 23:23:03 UTC
Effective Annual Interest Rate
Hi guys,
I need to get the Effective annual interest rate of a loan as defined in [1]
I have not found this rate information in any service, is it being
calculated anywhere? If it is not, could I add it to the response of the
following services?
.- POST Calculate loan repayment schedule
.- GET retrieve a loan
Thanks!
Lionel
[1] http://www.investopedia.com/terms/e/effectiveinterest.asp
Re: Effective Annual Interest Rate
Posted by Lionel Raymundi - Poincenot <li...@poincenot.com>.
Hi Nazeer, thanks for you answer.
I ended up adding this data to LoanScheduleModel and LoanScheduleData, to
be able to use it in Loan's "calculate" POST API response. I added it there
because we need to be able to compare this information at calculation time,
before the loan is created.
The calculations are performed in the "generate" method of
AbstractLoanScheduleGenerator (is where I found all the data that I needed).
So far, it is not necessary for us to get this info AFTER the loan is
created, but I think it would be useful as discussed with Ed.
So if you agree, I would create a JIRA ticket for this improvement also, so
we can discuss there and find a way to implement it in a way useful for all
of us.
Regards
Lionel
2017-08-18 6:39 GMT-03:00 Nazeer Shaik <nazeer.shaik@confluxtechnologies.com
>:
> Hi Lionel,
>
> Fineract doesn't have this value calculated. I suggest to implement as
> part of Loan GET API if it is used only for display. You can calculate
> effective interest rate by using the following values which are present in
> LoanInterestRecalculationData.java
>
> 1) Table: m_loan_recalculation_details, Column: compound_type_enum
> 2) Table: m_loan_recalculation_details, Column: compounding_frequency_
> type_enum
> 3) Table: m_loan_recalculation_details, Column: compounding_frequency_
> interval
> 4) Table: m_loan, Column: number_of_repayments
> 5) Table: m_loan, Column: annual_nominal_interest_rate
> 6) Table: m_loan, Column: interest_recalculation_enabled
>
> If you want to calculate Total Annual Loan Cost Rate, IMO you need to take
> the difference of loan amount requested and total loan cost and calculate
> the interest accordingly. Please refer LoanSummaryData.java file
>
> Regards,
> Nazeer
>
> On Fri, Apr 14, 2017 at 5:03 AM, Lionel Raymundi - Poincenot <
> lionel@poincenot.com> wrote:
>
>> Hi, thanks for your answer
>>
>> As a matter of fact, we also need to show to clients the total financing
>> cost (including all fees), with the mind set in transparency.
>> These are two different rates. The Effective Annual Rate (as defined in
>> my previous email) and the Total Annual Loan Cost Rate which includes all
>> fees. I haven't found a clear definition of the second one, that is why I
>> didn't include it on my first email. But if we can find a common ground on
>> what it means and how to calculate it, I could also work on it.
>>
>> Of course, I would gladly hear any comments or technical recommendations
>> on how to develop it.
>>
>> Regards,
>>
>> Lionel
>>
>>
>>
>> 2017-04-12 23:55 GMT-03:00 Ed Cable <ed...@mifos.org>:
>>
>>> Hi Lionel,
>>>
>>> Thanks for raising this question on the lists. I will defer to Nazeer to
>>> follow up and reply about this but I would like to also see us be able to
>>> easily calculate and display the APR as part of client protectionism and
>>> transparency efforts.
>>>
>>> It was on our roadmap a while back but nobody ever picked it up. It would
>>> be great to be able to easily display the APR for a loan product
>>> inclusive
>>> of fees so this could easily be disclosed to a client.
>>>
>>> Ed
>>>
>>> On Tue, Apr 11, 2017 at 4:23 PM, Lionel Raymundi - Poincenot <
>>> lionel@poincenot.com> wrote:
>>>
>>> > Hi guys,
>>> >
>>> > I need to get the Effective annual interest rate of a loan as defined
>>> in
>>> > [1]
>>> > I have not found this rate information in any service, is it being
>>> > calculated anywhere? If it is not, could I add it to the response of
>>> the
>>> > following services?
>>> > .- POST Calculate loan repayment schedule
>>> > .- GET retrieve a loan
>>> >
>>> > Thanks!
>>> >
>>> > Lionel
>>> >
>>> > [1] http://www.investopedia.com/terms/e/effectiveinterest.asp
>>> >
>>>
>>>
>>>
>>> --
>>> *Ed Cable*
>>> President/CEO, Mifos Initiative
>>> edcable@mifos.org | Skype: edcable | Mobile: +1.484.477.8649
>>>
>>> *Collectively Creating a World of 3 Billion Maries | *http://mifos.org
>>> <http://facebook.com/mifos> <http://www.twitter.com/mifos>
>>>
>>
>>
>
Re: Effective Annual Interest Rate
Posted by Nazeer Shaik <na...@confluxtechnologies.com>.
Hi Lionel,
Fineract doesn't have this value calculated. I suggest to implement as part
of Loan GET API if it is used only for display. You can calculate effective
interest rate by using the following values which are present
in LoanInterestRecalculationData.java
1) Table: m_loan_recalculation_details, Column: compound_type_enum
2) Table: m_loan_recalculation_details,
Column: compounding_frequency_type_enum
3) Table: m_loan_recalculation_details,
Column: compounding_frequency_interval
4) Table: m_loan, Column: number_of_repayments
5) Table: m_loan, Column: annual_nominal_interest_rate
6) Table: m_loan, Column: interest_recalculation_enabled
If you want to calculate Total Annual Loan Cost Rate, IMO you need to take
the difference of loan amount requested and total loan cost and calculate
the interest accordingly. Please refer LoanSummaryData.java file
Regards,
Nazeer
On Fri, Apr 14, 2017 at 5:03 AM, Lionel Raymundi - Poincenot <
lionel@poincenot.com> wrote:
> Hi, thanks for your answer
>
> As a matter of fact, we also need to show to clients the total financing
> cost (including all fees), with the mind set in transparency.
> These are two different rates. The Effective Annual Rate (as defined in my
> previous email) and the Total Annual Loan Cost Rate which includes all
> fees. I haven't found a clear definition of the second one, that is why I
> didn't include it on my first email. But if we can find a common ground on
> what it means and how to calculate it, I could also work on it.
>
> Of course, I would gladly hear any comments or technical recommendations
> on how to develop it.
>
> Regards,
>
> Lionel
>
>
>
> 2017-04-12 23:55 GMT-03:00 Ed Cable <ed...@mifos.org>:
>
>> Hi Lionel,
>>
>> Thanks for raising this question on the lists. I will defer to Nazeer to
>> follow up and reply about this but I would like to also see us be able to
>> easily calculate and display the APR as part of client protectionism and
>> transparency efforts.
>>
>> It was on our roadmap a while back but nobody ever picked it up. It would
>> be great to be able to easily display the APR for a loan product inclusive
>> of fees so this could easily be disclosed to a client.
>>
>> Ed
>>
>> On Tue, Apr 11, 2017 at 4:23 PM, Lionel Raymundi - Poincenot <
>> lionel@poincenot.com> wrote:
>>
>> > Hi guys,
>> >
>> > I need to get the Effective annual interest rate of a loan as defined in
>> > [1]
>> > I have not found this rate information in any service, is it being
>> > calculated anywhere? If it is not, could I add it to the response of the
>> > following services?
>> > .- POST Calculate loan repayment schedule
>> > .- GET retrieve a loan
>> >
>> > Thanks!
>> >
>> > Lionel
>> >
>> > [1] http://www.investopedia.com/terms/e/effectiveinterest.asp
>> >
>>
>>
>>
>> --
>> *Ed Cable*
>> President/CEO, Mifos Initiative
>> edcable@mifos.org | Skype: edcable | Mobile: +1.484.477.8649
>>
>> *Collectively Creating a World of 3 Billion Maries | *http://mifos.org
>> <http://facebook.com/mifos> <http://www.twitter.com/mifos>
>>
>
>
Re: Effective Annual Interest Rate
Posted by Lionel Raymundi - Poincenot <li...@poincenot.com>.
Hi, thanks for your answer
As a matter of fact, we also need to show to clients the total financing
cost (including all fees), with the mind set in transparency.
These are two different rates. The Effective Annual Rate (as defined in my
previous email) and the Total Annual Loan Cost Rate which includes all
fees. I haven't found a clear definition of the second one, that is why I
didn't include it on my first email. But if we can find a common ground on
what it means and how to calculate it, I could also work on it.
Of course, I would gladly hear any comments or technical recommendations on
how to develop it.
Regards,
Lionel
2017-04-12 23:55 GMT-03:00 Ed Cable <ed...@mifos.org>:
> Hi Lionel,
>
> Thanks for raising this question on the lists. I will defer to Nazeer to
> follow up and reply about this but I would like to also see us be able to
> easily calculate and display the APR as part of client protectionism and
> transparency efforts.
>
> It was on our roadmap a while back but nobody ever picked it up. It would
> be great to be able to easily display the APR for a loan product inclusive
> of fees so this could easily be disclosed to a client.
>
> Ed
>
> On Tue, Apr 11, 2017 at 4:23 PM, Lionel Raymundi - Poincenot <
> lionel@poincenot.com> wrote:
>
> > Hi guys,
> >
> > I need to get the Effective annual interest rate of a loan as defined in
> > [1]
> > I have not found this rate information in any service, is it being
> > calculated anywhere? If it is not, could I add it to the response of the
> > following services?
> > .- POST Calculate loan repayment schedule
> > .- GET retrieve a loan
> >
> > Thanks!
> >
> > Lionel
> >
> > [1] http://www.investopedia.com/terms/e/effectiveinterest.asp
> >
>
>
>
> --
> *Ed Cable*
> President/CEO, Mifos Initiative
> edcable@mifos.org | Skype: edcable | Mobile: +1.484.477.8649
>
> *Collectively Creating a World of 3 Billion Maries | *http://mifos.org
> <http://facebook.com/mifos> <http://www.twitter.com/mifos>
>
Re: Effective Annual Interest Rate
Posted by Ed Cable <ed...@mifos.org>.
Hi Lionel,
Thanks for raising this question on the lists. I will defer to Nazeer to
follow up and reply about this but I would like to also see us be able to
easily calculate and display the APR as part of client protectionism and
transparency efforts.
It was on our roadmap a while back but nobody ever picked it up. It would
be great to be able to easily display the APR for a loan product inclusive
of fees so this could easily be disclosed to a client.
Ed
On Tue, Apr 11, 2017 at 4:23 PM, Lionel Raymundi - Poincenot <
lionel@poincenot.com> wrote:
> Hi guys,
>
> I need to get the Effective annual interest rate of a loan as defined in
> [1]
> I have not found this rate information in any service, is it being
> calculated anywhere? If it is not, could I add it to the response of the
> following services?
> .- POST Calculate loan repayment schedule
> .- GET retrieve a loan
>
> Thanks!
>
> Lionel
>
> [1] http://www.investopedia.com/terms/e/effectiveinterest.asp
>
--
*Ed Cable*
President/CEO, Mifos Initiative
edcable@mifos.org | Skype: edcable | Mobile: +1.484.477.8649
*Collectively Creating a World of 3 Billion Maries | *http://mifos.org
<http://facebook.com/mifos> <http://www.twitter.com/mifos>