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  • For the loans falls under Standard category no need to have any provision or management can take the decision to keep 5% of the loan amount aside
  • For the loans falls under Sub-Standard category, the management can decide to keep 20% of the loan amount aside
  • For the loans falls under Doubtful category, the management can decide to keep 50% of the loan amount aside
  • For the loans falls under Loss category, the management can decide to keep 100% of the loan amount aside

 

Loan Loss Provision API(s)

1) https://serveraddress:port/mifosng-provider/api/v1/loanprovision

Request Parameters: "Date:date on which report to be generated, createjournalentry=true/false, regenerateprovisions:true/false, offset=number, limit=number", Method: GET

Description: This API should be used to generate loan loss provision entries. Date request parameter indicates on which the provision entries should be created. If createjournalentry parameter is true, then loan loss provision details will be added into journal entry. Before creating new journal entries, it will reverse previous journal entries if they present. If createjournalentry is false then it will not create the journal entries. If regenerateprovisions true, then it will delete previous provision entries if present and it will create new provision entries. If regenerateprovisions is false, it will return previous provision entries if present.The request parameters offset and limit are used for the pagination. This method will return list of provision entries in JSON data format

2) http://serveraddress:port/mifosng-provider/api/vi/loanprovision/list

Request Parameters; "offset=number, limit=number', Method: GET

Description: This API will return the provision data on which provision entries are created.The request parameter offset and limit are used for the pagination. This method will return list of provision available data. MFI can select a particular date and can see the provision entries by using https://serveraddress:port/mifosng-provider/api/v1/loanprovision API.

Loan Loss Provision Implementation in Mifos X:

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  • While creating any loan product template, provision categories should be added to the response object. For this
    • org.mifosplatform.portfolio.loanproduct.data.LoanProductData should have one more instance variable to hold provision categories
    • New interface org.mifosplatform.organisation.provisioning.service.ProvisionCategoriesReadPlatformService should have a method to retrieve all provision categories.
      • The method name is List<EnumOptionData> retrieveProvisionCategories() ;
    • Provision Categories should retrieved and set to LoanProductData in org.mifosplatform.LoanProductsApiResource.handleTemplate(final LoanProductData productData)
    • Client application should read response param "provisioncategoies" if available it should display provision categories as shown in create product mock up screen
  • While creating a loan product, the provision categories along with min age, max age, percentage to provision should be read and saved into DB. For this
    • New entity class org.mifosplatform.organisation.provisioning.domain.LoanProductProvision for 'm_loanproduct_provision_category' should be added
    • org.mifosplatform.portfolio.loanproduct.domain.LoanProduct should have set of LoanProductProvision
    • Client application should send loan product provision categories as part of the request params while creating a loan product. The parameter name is 'loanproductprovisons'
    • Provision categories should be read and added in org.mifosplatform.portfolio.loanproduct.domain.LoanProduct.assembleFromJson(...)
  • While retrieving a loan product (s), we need to retrieve the provision categories and associate with the Loan Product object (s). For this
    • org.mifosplatform.portfolio.loanproduct.service.LoanProductReadPlatformServiceImpl.retrieveLoanProduct(Long loanProductId) should be modified to associate provision categories
    • org.mifosplatform.portfolio.loanproduct.service.LoanProductReadPlatformServiceImpl.retrieveAllLoanProducts() should be modified to associate provision categories
    • org.mifosplatform.organisation.provisioning.service.ProvisionCategoriesReadPlatformService should expose a method to retrieve the provision categories based on loan product id
  • While updating a loan product (s), we need to update the provision categories associated to that loan product (s). For this
    • org.mifosplatform.portfolio.loanproduct.service.LoanProductWritePlatformServiceJpaRepositoryImpl.updateLoanProduct(...) should be modified to validate and update loan product provision categories

 

Loan Loss Provision API(s)

1) https://serveraddress:port/mifosng-provider/api/v1/loanprovision

Request Parameters: "Date:date on which report to be generated, createjournalentry=true/false, regenerateprovisions:true/false, offset=number, limit=number", Method: GET

Description: This API should be used to generate loan loss provision entries. Date request parameter indicates on which the provision entries should be created. If createjournalentry parameter is true, then loan loss provision details will be added into journal entry. Before creating new journal entries, it will reverse previous journal entries if they present. If createjournalentry is false then it will not create the journal entries. If regenerateprovisions true, then it will delete previous provision entries if present and it will create new provision entries. If regenerateprovisions is false, it will return previous provision entries if present.The request parameters offset and limit are used for the pagination. This method will return list of provision entries in JSON data format

2) http://serveraddress:port/mifosng-provider/api/vi/loanprovision/list

Request Parameters; "offset=number, limit=number', Method: GET

Description: This API will return the provision data on which provision entries are created.The request parameter offset and limit are used for the pagination. This method will return list of provision available data. MFI can select a particular date and can see the provision entries by using https://serveraddress:port/mifosng-provider/api/v1/loanprovision API.