1. Login to Mifos.
2. Go to 'Admin' tab, click on 'Define new loan product' link and create loan product with 'Declining balance'.
3. Set variable installments gaps (max: "20", min: "1", min inst. amount: "100").
5. Go to 'Clients & Accounts' tab and click on 'Create new loan account' link.
6. Select first of the previously created loan products.
7. Fill all necessary fields and set disbursal date. Go to preview page.
8. Submit changes.
9. Activate loan account.
10. Check installments schedule.
11. Apply one fee and one penalty.
12. Check installments schedule.