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Overview
As an operations manager I want to be able to adjust active loans to correctly reflect clients outstanding balances based on decisions that were made to either reschedule, or correct mistakes made in the past.
There are 3 We have identified are 4 basic scenarios when rescheduling a loan:
- Extension of the loan term by adding extra instalments to the loan
- Change of the due date of each of the future instalments by X days (to allow shifting of days)
- Give the client an extra grace period of X instalments to catch up on repayments
- Adjust the interest rate for the remainder of the loan.
In certain situations one or more of the above could apply at the same time, such as extending the loan term, and giving a grace period at the same time. The different scenarios might or might not affect the interest calculation on the loan. So in cases whereby the loan term is extended it might be still using the same original Principal and interest amount , but there should also be a possibility of the interest increasing.
Considerations:
- We can already do a very simplistic form of rescheduling, by waiving outstanding interest on a loan. Although this is not rescheduling perse it will still be available to cover (or extend) scenarios described for this topic
- The undo disbursement feature can still be used to correct basic mistakes on loans that have just been disbursed. For instance loan term of 4 weeks was selected instead of 4 months etc. This obviously has the trade-off for the user that they need to re-enter payments. But the expectation is that this is normally identified very early on in the loan schedule.
Background and strategic fit
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| # | Title | User Story | Importance | Notes |
|---|---|---|---|---|
| 1 | Extend loan repayment period | As a Branch Manager, I want to extend the loan term for a client who has difficulty to repay by a number of instalments | Must Have | |
| 2 | Change repayment date | As a loan officer, I want to change the day on which payments are due for a client when they change meeting days | Must Have | TBD whether the actor is the Loan officer or the BM as well. |
| 3 | Add a mid-loanterm grace period | As a Branch Manager, I want to add a grace period to an existing loan schedule to allow clients to catch up on repayments | Must Have | Grace period can be either on P, or P+I |
| 4 | Adjust interest rate for remainder of loan | As a Branch Manager, I want to adjust the interest rate for the remainder of the loan to allow clients to catch up on repayments | Nice to Have | Right now only for future instalments to avoid reprocessing of payments and issues arising around accounting (close periods etc) |
| 5 | Revert to original schedule | As a Branch Manager, I want to be able to revert a loan to the original schedule, to fix any mistakes made by clients | Must Have | Another solution: Undo reschedule feature, that would remove it again. |
| 6 | View rescheduled loans | As a Branch Manager, I want to be able to see loans that have been rescheduled and who performed the reschedule | Must Have | |
| 7 | View previous schedules | As a loanofficer, I want to be able to view previous loan schedules for a loan that has been rescheduled | Must Have |
Business Rules
Attributes
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| Attribute | Description | Notes |
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| LoanID | Loan ID | |
Security and Permissions
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- Flexible loan schedules. Even though the feature might re-use a lot of code from this feature we do not want to implement it straight away to reduce complexity. At the same time this process should take place before creating loan, rescheduling is after the disbursement.
- Rescheduling of interest on past instalments
- Rescheduling of instalments that have already been fully or partially paid.The extra grace period feature will be on the full instalment (P+I), future functionality might include choosing between either.