One of the predominantly used interest calculation is Daily. Some of the MFI derive interest per day by calculating the yearly interest rate to Principle amount. Here is the example
Loan Amount: 100000/-
Interest % : 24%
Interest amount for 1 year: 24000/-
No: of days in a year: 365
Interest amount per day: 24000 / 365 = 65.75
Interest amount for 31 days of a month: 65.75 * 31 = 2038.35
Interest amount for 30 days of a month: 65.75 * 30 = 1972.60
This change was done in mifos.x. Thanks to keith.
Can we accommodate this change in mifos ?
Please find attached document for examples.
Per our roadmap planning discussions, we have flagged this as improvement to target in the current Mifos codebase. Chetan - you had noted that other MFIs required this calculation - could you note in the comments where else you've seen this requirement requested.
Discussed with Vishwas and this issue can wait until the Marie K release.
Discussed during triage and user meetup on Sept 13, 2012 - still a priority request.
This enhancement is taken-care in mifosX. I believe we can ignore this for existing mifos version.
Addressed in mifosX