Additional disbursements

Description

"Need facility to add disbursements to an existing loan (subject to a ceiling).

Similar to a normal current account." "Workaround in Mifos is to close the loan in Mifos and to reopen a new loan with the new amount + closing balance of the closed account.  Or to have the new loan disbursement as a separate account itself.
It will be evaluated to see if additional disbursement can be done on an existing account."

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Activity

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Ed Cable
January 9, 2012, 5:49 PM

Based on 1/9/2012 triage meeting, we need additional details and business requirements for this issue to estimate level of effort before we can assign to a release.

Reporter (Kakhaber) - please provide additional details.

Binny Gopinath Sreevas
January 15, 2012, 5:58 PM

In Mifos, if during the tenure of a loan, an additional disbursement (topping-up of the loan) is made to the same customer, then the only option is to close the loan account (closed-rescheduled) and to disburse another loan with the outstanding amount + additional disbursement amount.

This makes it difficult to track the repayments for a customer easily, especially if the MFI allows frequent top-ups based on regularity of re-payments.

Instead, a facility is needed to add additional principal amount to outstanding principal at any given point in time till the loan is closed. The re-payment schedule usually get extended when additional disbursement is done.

For example:
1-Jan-2011 - Disbursed 20,000 (3 months loan, with 2 principal-only grace periods
1-Feb-2011 - member pays interest for 20,000
1-Mar-2011 - member pays interest for 20,000
1-Apr-2011 - member pays interest for 20,000 and requests for additional 30,000 which is approved and disbursed by MFI
1-May-2011 - member pays interest for 50,000
1-Jun-2011 - member pays interest for 50,000
1-July-2011 - member pays interest for 50,000 and repays 50,000

This has the following advantages:

  • the performance history of a customer on a loan can be easily viewed in Mifos

  • no need to open multiple loan accounts

  • accounting entries will be simpler in Mifos (i.e. no need to close loan accounts - closed rescheduled)

Kakhaber Kheladze
July 17, 2014, 6:49 PM

Is it still active in Mifos X?

Assignee

Binny Gopinath Sreevas

Reporter

Kakhaber Kheladze

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