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• Principal – Principal as per the Rest Specified
• Days Calculated – based on “Days Calculation Basis”

Other rules that will be followed:

a) When interest recalculation is turned on for a loan product, then any excess amount (over what is currently due or overdue) will be applied to the outstanding principal always. In this respect, it will override the settings for Repayment Strategy selected.

b) Any interest compounding will stop if any amount is overdue more than the number of days for the account to be treated as Non-Performing Asset (overdue_days_for_npa).

c) If there is a disbursement-time fee, which is calculated on principal+interest - then this fee amount will not be recomputed based on interest recalculations.

d) If any interest (or fee) was waived on an account - and the interest (or fee) changes due to the recalculations - then the waived amount will not be automatically changed by Mifos. The only situation when Mifos will automatically change the waived amount is when the total recalculated interest (or fee) due is less than the waived amount.

Example:

     Total Interest dues: Apr-14 - 300, May-14 - 250 and Jun-14 - 200

     Interest Waived = 300 (i.e. entire Apr-2014's interest is waived)

     Due to interest recalculation (due to a back-dated transaction), the interest amounts now change to: Apr-14 - 250, May-14 - 200 and Jun-14 - 150

     The waived amount remains as 300 (i.e. April's interest of 250  is waived and from May's interest - 50 is waived. If other behavior is needed, then user has to reverse the earlier waiver and then apply interest recalculation and then re-do the waiving with new amount).

Attributes

For Loan Products and Loan Accounts

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• Days in Year – Actual
• Recalculate Interest? – checkbox - Null
• Rest or Frequency at which outstanding principal is recalculated – Null
• Days Calculation Basis – Actual

Database changes 

 1. Modifications to Loan Product (“m_product_loan”)

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