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Posted to dev@fineract.apache.org by Ieesh <ie...@huru.co> on 2025/05/05 12:14:49 UTC
Support for Fixed First Repayment Date / Broken Period Interest
Hi community,
We are building a short-term loan product (similar to salary advances), and
need to support *fixed EMI dates* like the 5th or 15th of each month. If a
customer takes a loan on, say, the 26th of a month, we want the *first EMI
to start on the next 15th*, not exactly 30 days later.
This creates a *broken period interest* scenario where we need to:
-
Adjust interest for the first (partial) period (e.g., 19 days).
-
Ensure EMI dates remain fixed regardless of disbursement.
I’ve explored:
-
graceOnPrincipalPayment
-
graceOnInterestPayment
-
repaymentEvery / repaymentFrequencyType
-
expectedFirstRepaymentDate (throws validation error in Apache Fineract
1.8+)
But haven't found a consistent way to implement this behavior in recent
Apache Fineract versions.
📌 *Questions*: Is there an officially supported way to set a *fixed first
repayment date*?
Any guidance or suggestions from the community would be appreciated!
Thanks,
Ieesh Tyagi
Re: Support for Fixed First Repayment Date / Broken Period Interest
Posted by Paul <pc...@gmail.com>.
1. Why is it desired to start payments before a full period has elapsed?
2. US method. IF the payment period is "monthly", Set the payment date
as the "FIRST" 5th or 15th of each month so that at least 30 days have
elapsed between funding and start of repayment.
1. Any odd days over 30 days are collected at funding off the advance
and referred to as per diem. This is a very common method world wide.
If desired, I can provide more information on this method. It is by far the
simplest and easiest to structure and audit and explain to consumers.
Paul
On Mon, May 5, 2025 at 12:42 PM Ieesh <ie...@huru.co> wrote:
> Hi community,
>
> We are building a short-term loan product (similar to salary advances),
> and need to support *fixed EMI dates* like the 5th or 15th of each month.
> If a customer takes a loan on, say, the 26th of a month, we want the *first
> EMI to start on the next 15th*, not exactly 30 days later.
>
> This creates a *broken period interest* scenario where we need to:
>
> -
>
> Adjust interest for the first (partial) period (e.g., 19 days).
> -
>
> Ensure EMI dates remain fixed regardless of disbursement.
>
> I’ve explored:
>
> -
>
> graceOnPrincipalPayment
> -
>
> graceOnInterestPayment
> -
>
> repaymentEvery / repaymentFrequencyType
> -
>
> expectedFirstRepaymentDate (throws validation error in Apache Fineract
> 1.8+)
>
> But haven't found a consistent way to implement this behavior in recent
> Apache Fineract versions.
>
> 📌 *Questions*: Is there an officially supported way to set a *fixed
> first repayment date*?
>
> Any guidance or suggestions from the community would be appreciated!
>
>
> Thanks,
> Ieesh Tyagi
>
>
--
--
Paul
Re: Support for Fixed First Repayment Date / Broken Period Interest
Posted by Priyanka Verma <pr...@huru.co>.
Hi Adam
Thank you for getting back to me.
We checked this at our end and it is working as expected. Appreciate your
help.
Thanks
*Priyanka*
*+91-9654732870 | www.huru.co <http://www.huru.co>*
On Mon, May 5, 2025 at 11:49 PM Ádám Sághy <ad...@gmail.com> wrote:
> Hi
>
> You mean something like this?
>
> [image: PastedGraphic-2.png]
>
> The above screenshot was taken by:
> - Backend: latest “develop” branch of community Apache Fineract repository
> - UI: latest “main” branch of Mifos Web-App
>
> Loan application:
> - Submitted on date: 5 May 2025
> - Disbursement date: 5 May 2025
> - Expected first repayment date: 15 May 2025
> - Interest charged from: 15 May 2025
>
> No error at my side!
>
> I hope it helps!
>
> Regards,
> Adam
>
> On 2025. May 5., at 14:14, Ieesh <ie...@huru.co> wrote:
>
> Hi community,
>
> We are building a short-term loan product (similar to salary advances),
> and need to support *fixed EMI dates* like the 5th or 15th of each month.
> If a customer takes a loan on, say, the 26th of a month, we want the *first
> EMI to start on the next 15th*, not exactly 30 days later.
>
> This creates a *broken period interest* scenario where we need to:
>
> -
>
> Adjust interest for the first (partial) period (e.g., 19 days).
> -
>
> Ensure EMI dates remain fixed regardless of disbursement.
>
> I’ve explored:
>
> -
>
> graceOnPrincipalPayment
> -
>
> graceOnInterestPayment
> -
>
> repaymentEvery / repaymentFrequencyType
> -
>
> expectedFirstRepaymentDate (throws validation error in Apache Fineract
> 1.8+)
>
> But haven't found a consistent way to implement this behavior in recent
> Apache Fineract versions.
>
> 📌 *Questions*: Is there an officially supported way to set a *fixed
> first repayment date*?
>
> Any guidance or suggestions from the community would be appreciated!
>
>
> Thanks,
> Ieesh Tyagi
>
>
>
Re: Support for Fixed First Repayment Date / Broken Period Interest
Posted by Ádám Sághy <ad...@gmail.com>.
Hi
You mean something like this?

The above screenshot was taken by:
- Backend: latest “develop” branch of community Apache Fineract repository
- UI: latest “main” branch of Mifos Web-App
Loan application:
- Submitted on date: 5 May 2025
- Disbursement date: 5 May 2025
- Expected first repayment date: 15 May 2025
- Interest charged from: 15 May 2025
No error at my side!
I hope it helps!
Regards,
Adam
> On 2025. May 5., at 14:14, Ieesh <ie...@huru.co> wrote:
>
> Hi community,
>
> We are building a short-term loan product (similar to salary advances), and need to support fixed EMI dates like the 5th or 15th of each month. If a customer takes a loan on, say, the 26th of a month, we want the first EMI to start on the next 15th, not exactly 30 days later.
>
> This creates a broken period interest scenario where we need to:
>
> Adjust interest for the first (partial) period (e.g., 19 days).
>
> Ensure EMI dates remain fixed regardless of disbursement.
>
> I’ve explored:
>
> graceOnPrincipalPayment
>
> graceOnInterestPayment
>
> repaymentEvery / repaymentFrequencyType
>
> expectedFirstRepaymentDate (throws validation error in Apache Fineract 1.8+)
>
> But haven't found a consistent way to implement this behavior in recent Apache Fineract versions.
>
> 📌 Questions: Is there an officially supported way to set a fixed first repayment date?
>
> Any guidance or suggestions from the community would be appreciated!
>
>
>
> Thanks,
> Ieesh Tyagi
>