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Posted to dev@fineract.apache.org by Adriana Pinto <ad...@bowpi.com> on 2017/07/28 22:23:14 UTC

Daily calculation - Interests and charges

Hi Community.
Our team has been developing over the platform, and it's really interesting.
Actually, we have a special case, which has demanded us the daily-calculation of interests in our loans.
How? Every loan are calculated with a nominal rate and Declining Balance, and it's ok; but at late repayments we need to calculate the overdue charges DAILY.
For example:
Overdue interests are 217.11, and the rate for overdue charges is 10%. Then, the moratorium per day would be (217.11*10%*1/360), and it would be accumulated till the day the repayment occurs.

Is there any way of configuring this calculation and having evidence of it.

Kind regards,
Adriana Pinto

Re: [Mifos-developer] Daily calculation - Interests and charges

Posted by Santosh Math <sa...@confluxtechnologies.com>.

Hi Adriana,

I have created the same charge (considering 10% of interest charged daily)
here on demo instance:

https://demo.openmf.org/#/viewcharge/164

And also check the screenshot:

You can change the charge configuration as you wish by editing Charge
calculation type and Amount.

Thanks
Santosh


On Sat, Jul 29, 2017 at 3:53 AM, Adriana Pinto <ad...@bowpi.com>
wrote:

> Hi Community.
>
> Our team has been developing over the platform, and it’s really
> interesting.
>
> Actually, we have a special case, which has demanded us the
> daily-calculation of interests in our loans.
>
> How? Every loan are calculated with a nominal rate and Declining Balance,
> and it’s ok; but at late repayments we need to calculate the overdue
> charges DAILY.
>
> For example:
>
> Overdue interests are 217.11, and the rate for overdue charges is 10%.
> Then, the moratorium per day would be (217.11*10%*1/360), and it would be
> *accumulated* till the day the repayment occurs.
>
>
>
> Is there any way of configuring this calculation and having evidence of it.
>
>
>
> Kind regards,
>
> Adriana Pinto
>
>
>
> ------------------------------------------------------------
> ------------------
> Check out the vibrant tech community on one of the world's most
> engaging tech sites, Slashdot.org! http://sdm.link/slashdot
> Mifos-developer mailing list
> mifos-developer@lists.sourceforge.net
> Unsubscribe or change settings at:
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>



-- 
Thanks  and Regards
Santosh Math
Lead QA & Support
Conflux Technologies Pvt Ltd, Bengaluru
Skype:santoshmath99

RE: Daily calculation - Interests and charges

Posted by Adriana Pinto <ad...@bowpi.com>.

Do you have other developers who need the daily balance calculation of the loans?
Just the way I described below…
I’d really appreciate your answer.

De: Adriana Pinto [mailto:adriana.pinto@bowpi.com]
Enviado el: lunes, 31 de julio de 2017 11:00 a.m.
Para: Ed Cable <ed...@mifos.org>
CC: dev@fineract.apache.org; Jose Garcia <jo...@bowpi.com>; Mifos software development <mi...@lists.sourceforge.net>
Asunto: Re: [Mifos-developer] Daily calculation - Interests and charges

I really appreciate your answer.
Maybe, my requirement is more specific for now. I’ll try to give you more details below:

The scenario (for example) is this:

1. An overdue amount of Capital for 217.11
2. An overdue amount of Interest for 300.00
3. Payment day: day 24 for every months
4. Moratorium percentage for overdue capital: 10%
5. Moratorium percentage for overdue Interest: 5%
6. For every day the client doesn’t make a repayment, the moratorium is calculated and accumulated
7. So, if the client make the Repayment on 31/08, it will have to pay 0.5921 of moratorium, and because of the repayment strategy, the next amount to charge from the payment are the overdues amounts, and so on.

[cid:image001.jpg@01D30B6E.581510C0]

1. In MIFOS, when I configure the charge for Moratorium over interests, it shows this resume:
2. (There is no way to configure the Moratorium for the capital, at least if it is the “% Amount” option, but I’m not sure about it.)

[cid:image002.jpg@01D30B6E.581510C0]

1. Finally, when charges are applied to the loan, the system (Mifos) calculates the 5% over the full amount of interests. For example, if my overdue amount of interests is 300.00, it calculates for Moratorium 15.00 (300*5%), even if the frequency of the charge is daily and the calculation of interests at the loan is daily, too.

If you have any other question, do not hesitate to contact me.
Kind regards,

Adriana Pinto

Pd. I’ll give you more information about our Mifos initiative in the other email you sent. Thank you in advance.

De: Ed Cable [mailto:edcable@mifos.org]
Enviado el: sábado, 29 de julio de 2017 09:21 a.m.
Para: Adriana Pinto <ad...@bowpi.com>>
CC: Mifos software development <mi...@lists.sourceforge.net>>; dev@fineract.apache.org<ma...@fineract.apache.org>
Asunto: Re: Daily calculation - Interests and charges

Hi Adriana,

Welcome to the community! I look forward to learning more about the Fintech Innovation that Bowpi is working on in Guatemala.

In theory, you should be able to support the loan product with the daily repayment penalties that you're requiring.

I wasn't able to test it out on the demo server just yet but I configured a product with the daily interest and declining balance calculation along with an overdue fee charge that is 10% of the loan amount + interest, calculated on a daily frequency. Were you stating that you just needed the penalty to be calculated only on overdue interest? and not overdue principal + interest or total interest?

Thanks,

On Fri, Jul 28, 2017 at 3:23 PM, Adriana Pinto <ad...@bowpi.com>> wrote:
Hi Community.
Our team has been developing over the platform, and it’s really interesting.
Actually, we have a special case, which has demanded us the daily-calculation of interests in our loans.
How? Every loan are calculated with a nominal rate and Declining Balance, and it’s ok; but at late repayments we need to calculate the overdue charges DAILY.
For example:
Overdue interests are 217.11, and the rate for overdue charges is 10%. Then, the moratorium per day would be (217.11*10%*1/360), and it would be accumulated till the day the repayment occurs.

Is there any way of configuring this calculation and having evidence of it.

Kind regards,
Adriana Pinto

--
Ed Cable
President/CEO, Mifos Initiative
edcable@mifos.org<ma...@mifos.org> | Skype: edcable | Mobile: +1.484.477.8649

Collectively Creating a World of 3 Billion Maries | http://mifos.org [Imagen quitada por el remitente.] <http://facebook.com/mifos> [Imagen quitada por el remitente.] <http://www.twitter.com/mifos>

RE: Daily calculation - Interests and charges

Posted by Shaik Nazeer <na...@confluxtechnologies.com>.

A possible workaround is to add the charge percentage by converting value from yearly to daily.

 

Regards,

Nazeer

From: Ed Cable [mailto:edcable@mifos.org] 
Sent: 02 August 2017 20:53
To: Adriana Pinto
Cc: Mifos software development; dev@fineract.apache.org; Jose Garcia
Subject: Re: Daily calculation - Interests and charges

 

Hi Adriana,

 

Thanks for providing these specifics. 

 

So to confirm, you need the ability to specify overdue penalties for the following new scenarios that aren't currently available right now.

 

Percentage of overdue principal (capital)

Percentage of overdue interest

 

For both of these you would need to allow this to be done a daily frequency.

 

Can you create a feature request ticket on the Apache Fineract JIRA? You can create an account and then open the ticket at https://issues.apache.org/jira/projects/FINERACT

Is this a requirement that you team could work on? We can try and provide guidance and mentorship from developers in the community. 

 

On Mon, Jul 31, 2017 at 9:59 AM, Adriana Pinto <ad...@bowpi.com> wrote:

Hi Ed.

I really appreciate your answer.

Maybe, my requirement is more specific for now. I’ll try to give you more details below:

 

The scenario (for example) is this:

1.	An overdue amount of Capital for 217.11
2.	An overdue amount of Interest for 300.00
3.	Payment day: day 24 for every months
4.	Moratorium percentage for overdue capital: 10% 
5.	Moratorium percentage for overdue Interest: 5%
6.	For every day the client doesn’t make a repayment, the moratorium is calculated and accumulated
7.	So, if the client make the Repayment on 31/08, it will have to pay 0.5921 of moratorium, and because of the repayment strategy, the next amount to charge from the payment are the overdues amounts, and so on.

 



 

8.	In MIFOS, when I configure the charge for Moratorium over interests, it shows this resume:
9.	(There is no way to configure the Moratorium for the capital, at least if it is the “% Amount” option, but I’m not sure about it.)

 



 

10.	Finally, when charges are applied to the loan, the system (Mifos) calculates the 5% over the full amount of interests. For example, if my overdue amount of interests is 300.00, it calculates for Moratorium 15.00 (300*5%), even if the frequency of the charge is daily and the calculation of interests at the loan is daily, too.

 

If you have any other question, do not hesitate to contact me.

Kind regards, 

 

Adriana Pinto

 

Pd. I’ll give you more information about our Mifos initiative in the other email you sent. Thank you in advance.

 

De: Ed Cable [mailto:edcable@mifos.org] 
Enviado el: sábado, 29 de julio de 2017 09:21 a.m.
Para: Adriana Pinto <ad...@bowpi.com>
CC: Mifos software development <mi...@lists.sourceforge.net>; dev@fineract.apache.org
Asunto: Re: Daily calculation - Interests and charges

 

Hi Adriana,

 

Welcome to the community! I look forward to learning more about the Fintech Innovation that Bowpi is working on in Guatemala.

 

In theory, you should be able to support the loan product with the daily repayment penalties that you're requiring.

 

I wasn't able to test it out on the demo server just yet but I configured a product with the daily interest and declining balance calculation along with an overdue fee charge that is 10% of the loan amount + interest, calculated on a daily frequency.  Were you stating that you just needed the penalty to be calculated only on overdue interest? and not overdue principal + interest or  total interest?

 

Thanks,

 

Ed

 

On Fri, Jul 28, 2017 at 3:23 PM, Adriana Pinto < <ma...@bowpi.com> adriana.pinto@bowpi.com> wrote:

Hi Community.

Our team has been developing over the platform, and it’s really interesting.

Actually, we have a special case, which has demanded us the daily-calculation of interests in our loans.

How? Every loan are calculated with a nominal rate and Declining Balance, and it’s ok; but at late repayments we need to calculate the overdue charges DAILY.

For example:

Overdue interests are 217.11, and the rate for overdue charges is 10%. Then, the moratorium per day would be (217.11*10%*1/360), and it would be accumulated till the day the repayment occurs.

 

Is there any way of configuring this calculation and having evidence of it.

 

Kind regards,

Adriana Pinto

 





 

-- 

Ed Cable

President/CEO, Mifos Initiative

 <ma...@mifos.org> edcable@mifos.org | Skype: edcable | Mobile: +1.484.477.8649 <tel:(484)%20477-8649> 

 

Collectively Creating a World of 3 Billion Maries |  <http://mifos.org> http://mifos.org  <http://facebook.com/mifos> Imagen quitada por el remitente.  <http://www.twitter.com/mifos> Imagen quitada por el remitente.

 





 

-- 

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: Daily calculation - Interests and charges

Posted by Ed Cable <ed...@mifos.org>.

Hi Adriana,

Thanks for providing these specifics.

So to confirm, you need the ability to specify overdue penalties for the
following new scenarios that aren't currently available right now.

Percentage of overdue principal (capital)
Percentage of overdue interest

For both of these you would need to allow this to be done a daily frequency.

Can you create a feature request ticket on the Apache Fineract JIRA? You
can create an account and then open the ticket at
https://issues.apache.org/jira/projects/FINERACT

Is this a requirement that you team could work on? We can try and provide
guidance and mentorship from developers in the community.

On Mon, Jul 31, 2017 at 9:59 AM, Adriana Pinto <ad...@bowpi.com>
wrote:

> Hi Ed.
>
> I really appreciate your answer.
>
> Maybe, my requirement is more specific for now. I’ll try to give you more
> details below:
>
>
>
> The scenario (for example) is this:
>
>    1. An overdue amount of Capital for 217.11
>    2. An overdue amount of Interest for 300.00
>    3. Payment day: day 24 for every months
>    4. Moratorium percentage for overdue capital: 10%
>    5. Moratorium percentage for overdue Interest: 5%
>    6. For every day the client doesn’t make a repayment, the moratorium
>    is calculated and accumulated
>    7. So, if the client make the Repayment on 31/08, it will have to pay
>    0.5921 of moratorium, and because of the repayment strategy, the next
>    amount to charge from the payment are the overdues amounts, and so on.
>
>
>
>
>
>    1. In MIFOS, when I configure the charge for Moratorium over
>    interests, it shows this resume:
>    2. (There is no way to configure the Moratorium for the capital, at
>    least if it is the “% Amount” option, but I’m not sure about it.)
>
>
>
>
>
>    1. Finally, when charges are applied to the loan, the system (Mifos)
>    calculates the 5% over the full amount of interests. For example, if my
>    overdue amount of interests is 300.00, it calculates for Moratorium 15.00
>    (300*5%), even if the frequency of the charge is daily and the calculation
>    of interests at the loan is daily, too.
>
>
>
> If you have any other question, do not hesitate to contact me.
>
> Kind regards,
>
>
>
> Adriana Pinto
>
>
>
> Pd. I’ll give you more information about our Mifos initiative in the other
> email you sent. Thank you in advance.
>
>
>
> *De:* Ed Cable [mailto:edcable@mifos.org]
> *Enviado el:* sábado, 29 de julio de 2017 09:21 a.m.
> *Para:* Adriana Pinto <ad...@bowpi.com>
> *CC:* Mifos software development <mi...@lists.sourceforge.net>;
> dev@fineract.apache.org
> *Asunto:* Re: Daily calculation - Interests and charges
>
>
>
> Hi Adriana,
>
>
>
> Welcome to the community! I look forward to learning more about the
> Fintech Innovation that Bowpi is working on in Guatemala.
>
>
>
> In theory, you should be able to support the loan product with the daily
> repayment penalties that you're requiring.
>
>
>
> I wasn't able to test it out on the demo server just yet but I configured
> a product with the daily interest and declining balance calculation along
> with an overdue fee charge that is 10% of the loan amount + interest,
> calculated on a daily frequency.  Were you stating that you just needed the
> penalty to be calculated only on overdue interest? and not overdue
> principal + interest or  total interest?
>
>
>
> Thanks,
>
>
>
> Ed
>
>
>
> On Fri, Jul 28, 2017 at 3:23 PM, Adriana Pinto <ad...@bowpi.com>
> wrote:
>
> Hi Community.
>
> Our team has been developing over the platform, and it’s really
> interesting.
>
> Actually, we have a special case, which has demanded us the
> daily-calculation of interests in our loans.
>
> How? Every loan are calculated with a nominal rate and Declining Balance,
> and it’s ok; but at late repayments we need to calculate the overdue
> charges DAILY.
>
> For example:
>
> Overdue interests are 217.11, and the rate for overdue charges is 10%.
> Then, the moratorium per day would be (217.11*10%*1/360), and it would be
> *accumulated* till the day the repayment occurs.
>
>
>
> Is there any way of configuring this calculation and having evidence of it.
>
>
>
> Kind regards,
>
> Adriana Pinto
>
>
>
>
>
>
>
> --
>
> *Ed Cable*
>
> President/CEO, Mifos Initiative
>
> edcable@mifos.org | Skype: edcable | Mobile: +1.484.477.8649
> <(484)%20477-8649>
>
>
>
> *Collectively Creating a World of 3 Billion Maries | *http://mifos.org *[image:
> Imagen quitada por el remitente.]* <http://facebook.com/mifos> *[image:
> Imagen quitada por el remitente.]* <http://www.twitter.com/mifos>
>
>
>



-- 
*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: Daily calculation - Interests and charges

Posted by Adriana Pinto <ad...@bowpi.com>.

Hi Ed.
I really appreciate your answer.
Maybe, my requirement is more specific for now. I’ll try to give you more details below:

The scenario (for example) is this:

[cid:image003.jpg@01D309EC.168A98B0]

[cid:image005.jpg@01D309EC.168A98B0]

If you have any other question, do not hesitate to contact me.
Kind regards,

Adriana Pinto

Pd. I’ll give you more information about our Mifos initiative in the other email you sent. Thank you in advance.

De: Ed Cable [mailto:edcable@mifos.org]
Enviado el: sábado, 29 de julio de 2017 09:21 a.m.
Para: Adriana Pinto <ad...@bowpi.com>
CC: Mifos software development <mi...@lists.sourceforge.net>; dev@fineract.apache.org
Asunto: Re: Daily calculation - Interests and charges

Hi Adriana,

Welcome to the community! I look forward to learning more about the Fintech Innovation that Bowpi is working on in Guatemala.

In theory, you should be able to support the loan product with the daily repayment penalties that you're requiring.

Thanks,

Is there any way of configuring this calculation and having evidence of it.

Kind regards,
Adriana Pinto

--
Ed Cable
President/CEO, Mifos Initiative
edcable@mifos.org<ma...@mifos.org> | Skype: edcable | Mobile: +1.484.477.8649

Collectively Creating a World of 3 Billion Maries | http://mifos.org [Imagen quitada por el remitente.] <http://facebook.com/mifos> [Imagen quitada por el remitente.] <http://www.twitter.com/mifos>

Re: Daily calculation - Interests and charges

Posted by Ed Cable <ed...@mifos.org>.

Hi Adriana,

Welcome to the community! I look forward to learning more about the Fintech
Innovation that Bowpi is working on in Guatemala.

In theory, you should be able to support the loan product with the daily
repayment penalties that you're requiring.

I wasn't able to test it out on the demo server just yet but I configured a
product with the daily interest and declining balance calculation along
with an overdue fee charge that is 10% of the loan amount + interest,
calculated on a daily frequency.  Were you stating that you just needed the
penalty to be calculated only on overdue interest? and not overdue
principal + interest or  total interest?

Thanks,

Ed

On Fri, Jul 28, 2017 at 3:23 PM, Adriana Pinto <ad...@bowpi.com>
wrote:

> Hi Community.
>
> Our team has been developing over the platform, and it’s really
> interesting.
>
> Actually, we have a special case, which has demanded us the
> daily-calculation of interests in our loans.
>
> How? Every loan are calculated with a nominal rate and Declining Balance,
> and it’s ok; but at late repayments we need to calculate the overdue
> charges DAILY.
>
> For example:
>
> Overdue interests are 217.11, and the rate for overdue charges is 10%.
> Then, the moratorium per day would be (217.11*10%*1/360), and it would be
> *accumulated* till the day the repayment occurs.
>
>
>
> Is there any way of configuring this calculation and having evidence of it.
>
>
>
> Kind regards,
>
> Adriana Pinto
>
>
>

-- 
*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>