Re: Issue on early repayment of loans with interest recalculation enabled

[David Yahalomi <da...@articode.co>]

Hey all,

I've just arrived at this issue as well.
The relevant code that is responsible for this is the following:
From file AbstractLoanScheduleGenerator.java
[image: image.png]

It seems intentional but it might be a result of patchwork across the years.
After that code section, the system runs the repayment strategy and figures
out the repayment components.

Has anyone else faced this issue?
Does anyone have any insight on whether this should stay as is?

Thanks ahead,

David Yahalomi
Co-Founder

Rothschild Blvd 3, Tel Aviv-Yafo, Israel
mobile: + 972 52 817 9787
email: david@articode.co
  <https://articode.co>

ᐧ

On Mon, Jul 15, 2019 at 7:16 PM Angel Cajas <an...@bowpi.com> wrote:

> Hi Mohit,
>
>
>
> Yes the installments are being reduced, but the payment amount for the
> actual installment is increasing when I do a payment with a greater amount.
> Unless the client pays the outstanding installment amount in the
> established payment day there will always be an outstanding amount for that
> installment. Check the attached pics for reference.
>
>
>
>
>
> *From:* Mohit Sinha <mo...@gmail.com>
> *Sent:* domingo, 14 de julio de 2019 23:40
> *To:* dev@fineract.apache.org
> *Cc:* santosh@confluxtechnologies.com
> *Subject:* Re: Issue on early repayment of loans with interest
> recalculation enabled
>
>
>
> Hey Angel,
>
> Is the number of installments reducing?
>
>
>
> On Fri, Jul 12, 2019 at 10:39 PM Angel Cajas <an...@bowpi.com>
> wrote:
>
> Hi Santosh,
>
> Any updates on if this is the expected way that interest recalculation
> with declining balance configuration should be working?
>
>
>
> Regards, Angel.
>
>
>
> *From:* Angel Cajas
> *Sent:* miércoles, 5 de junio de 2019 10:53
> *To:* santosh@confluxtechnologies.com
> *Cc:* Dev <de...@fineract.apache.org>
> *Subject:* RE: Issue on early repayment of loans with interest
> recalculation enabled
>
>
>
> Hi Santosh,
>
>
>
> Thanks for your answer, here are the pictures you requested
>
>
>
>
>
> Regards, Angel
>
>
>
> *From:* Santosh Math <sa...@confluxtechnologies.com>
> *Sent:* miércoles, 5 de junio de 2019 00:15
> *To:* Angel Cajas <an...@bowpi.com>
> *Cc:* Dev <de...@fineract.apache.org>
> *Subject:* Re: Issue on early repayment of loans with interest
> recalculation enabled
>
>
>
> Hi Angel,
>
> Please share the screenshot of 'Account Detail' tab and 'Transactions' tab
> so that I can explain you better.
>
>
>
> On Mon, Jun 3, 2019 at 10:24 PM Angel Cajas <an...@bowpi.com> wrote:
>
> Hi devs,
>
>
>
> I’m doing some test with some products and I’m bringing this issue. I
> don’t know if this is the right way it should work but for me I doesn’t
> seem like it is.
>
>
>
> When I make a repayment equal or greater than the installment amount
> before the last installment date, the principal amount for the installment
> is greater and It just seems like I still have some outstanding amount left
> to pay for the installment.
>
>
>
> I’m attaching some pictures for you to see this issue.
>
>
>
> This is my loan product configuration for interest recalculation
>
>
>
>
>
>
>
> This is my original schedule, notice how I only have to pay 581.75 for the
> first installment,
>
>
>
> I make a repayment of the total installment amount one day earlier than
> expected payment day
>
>
>
> And lastly notice how even tough I already paid the total amount for the
> installment, I still continue to have some outstanding amount and this
> continues with every early repayment I make which causes my account to be
> in arrears unless I make the repayment on the expected payment date as I
> still have some outstanding amount from that installment.
>
>
>
> I think this is wrong because  if I make an early repayment with an amount
> equal or greater than the payment amount I shouldn’t have any outstanding
> amount left.
>
>
>
> I will appreciate your feedback on if this is how early repayments are
> expected to work with interest recalculation enabled.
>
>
>
> Thanks for your attention.
>
>
>
> Regards, Angel
>
>
>
>
> --
>
> Thanks & Regards
>
> Santosh Math
>
> *QA Engineer*
>
> *Conflux Technologies Pvt Ltd <http://www.confluxtechnologies.com/>*
>
> | *Office*: +91-080-41208662 |
>
> *Address*: #304, 2nd Floor, 7th Main Road, HRBR Layout 1st Block,
> Bengaluru, Karnataka, 560043 INDIA
>
>