...
Given A client with a weekly meeting on a wednesday exists ,(client created and activated on 11th of Jan 2011)
And on tues 1st Feb - a loan account is created and approved,
Then loan schedule at account creation has disbursal due on 2-feb-2011, with first installment starting from 9-feb-2011
...
For the example below with LSIM on, I left the installment meeting happening every 1 weeks on a Wednesday just like the clients meeting.
Standard loan product with Flat Interest Rate
LSIM Off
early disbursement of loan account
on tues 1st Feb - disbursed loan account (schedule at account disbursal, disbursed on 1-feb-2011, first installment starting from 2-feb-2011)
(orginal schedule is schedule after disbursement!)
...
So in summary, with LSIM off, loan installments must match clients meeting schedule and the disbursement of the loan can happen any day after the account is created.
LSIM On
early disbursement of loan account
on tues 1st Feb - disbursed loan account (schedule at account disbursal, disbursed on 1-feb-2011, first installment starting from 9-feb-2011)
(orginal schedule is schedule after disbursement!)
...
NOTE: exact same as LSIM off
Variable loan product with Declining Balance Interest Rate
LSIM Off
early disbursement of loan account
on tues 1st Feb - disbursed loan account (schedule at account disbursal, disbursed on 1-feb-2011, first installment starting from 8-feb-2011)
(orginal schedule is schedule after disbursement!)
NOTE: number of days between disbursement date and first installment preserved (day of week of installment does not matter)
On time disbursement
on wed 2nd Feb - disbursed loan account (schedule at account disbursal, disbursed on 2-feb-2011, first installment starting from 9-feb-2011)
(orginal schedule is schedule after disbursement!)
NOTE: number of days between disbursement date and first installment preserved (day of week of installment does not matter)
late disbursement
on thurs 3rd Feb - disbursed loan account (schedule at account disbursal, disbursed on 3-feb-2011, first installment starting from 10-feb-2011)
(orginal schedule is schedule after disbursement!)
NOTE: number of days between disbursement date and first installment preserved (day of week of installment does not matter)
late disbursement
on wed 9th Feb - disbursed loan account (schedule at account disbursal, disbursed on 9-feb-2011, first installment starting from 16-feb-2011)
(orginal schedule is schedule after disbursement!)
NOTE: number of days between disbursement date and first installment preserved (day of week of installment does not matter)
late disbursement
on wed 10th Feb - disbursed loan account (schedule at account disbursal, disbursed on 10-feb-2011, first installment starting from 17-feb-2011)
(orginal schedule is schedule after disbursement!)
NOTE: number of days between disbursement date and first installment preserved (day of week of installment does not matter)
LSIM on
early disbursement of loan account
on tues 1st Feb - disbursed loan account (schedule at account disbursal, disbursed on 1-feb-2011, first installment starting from 8-feb-2011)
(orginal schedule is schedule after disbursement!)
NOTE: number of days between disbursement date and first installment preserved (day of week of installment does not matter)
On time disbursement
on wed 2nd Feb - disbursed loan account (schedule at account disbursal, disbursed on 2-feb-2011, first installment starting from 9-feb-2011)
(orginal schedule is schedule after disbursement!)
late disbursement
on thurs 3rd Feb - disbursed loan account (schedule at account disbursal, disbursed on 3-feb-2011, first installment starting from 10-feb-2011)
(orginal schedule is schedule after disbursement!)
NOTE: number of days between disbursement date and first installment preserved (day of week of installment does not matter)
late disbursement
on wed 9th Feb - disbursed loan account (schedule at account disbursal, disbursed on 9-feb-2011, first installment starting from 16-feb-2011)
(orginal schedule is schedule after disbursement!)
NOTE: number of days between disbursement date and first installment preserved (day of week of installment does not matter)
late disbursement
on wed 10th Feb - disbursed loan account (schedule at account disbursal, disbursed on 10-feb-2011, first installment starting from 17-feb-2011)
(orginal schedule is schedule after disbursement!)
NOTE: number of days between disbursement date and first installment preserved (day of week of installment does not matter)