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Page Properties
Target release
Epic 
Document status
Status
titleDRAFT
Document owner 
Designer
Developers
QA

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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”)

Column NameData TypeDescription
days_in_month_enumint

No of Days should be considered in loan calculation

Actual or 30 days
days_in_year_enumint

No of Days should be considered in loan calculation

Actual or 360 or 365 or 364
interest_recalculation_enabledtinyint

Boolean flag indicates is interest recalculation required if

payment not done as per the schedule.

 

2.   Modifications to Loan Product (“m_loan”)

Column NameData TypeDescription
days_in_month_enumint

No of Days should be considered in loan calculation

Actual or 30 days
days_in_year_enumint

No of Days should be considered in loan calculation

Actual or 360 or 365 or 364
interest_recalculation_enabledtinyint

Boolean flag indicates is interest recalculation required if

payment not done as per the schedule.

 

 

3. Interest Recalculation settings (m_loan_recalculation_details)

Column NameData TypeDescription
interest_compound_enabledtinyint

Boolean flag indicates whether interest compounding to be used

in recalculation

rest_frequency_idbigintfrequency to be used for interest recalculation. references to m_frequency_details
reschedule_strategyint

indicates which reschedule strategy to be used on prepayment

  • Reschedule Next Repayments
  • Reduce Number of Installments


4. Frequency or periodicity details (m_frequency_details)

Column NameData TypeDescription
frequency_type smallint
  • days
  • weeks
  • months
  • years
repeat_on_daysmallint 
repeat_on_monthsmallint 
repeat_intervalsmallint 

 

Use cases:

     1. identify  recalculation : check the payment against schedule and should process recalculation in following scenarios 

    1. late payment, should be identified by a  batch job
    2. back dated entry
    3. pre-payment
    4. on time with advanced-payment / less payment(ex : on 3rd should pay 1000 but the payment is done for 500 or 1500)

     2.  process recalculation :

    1. identify outstanding principal 
    2. identify amount for interest compound 
    3. regenerate schedule based on outstanding and rest frequency
    4. add the extra interest to next installment(should define the behavior if last payment is delayed?)
    5. if prepayment is done then use one of the strategy to reschedule.
      1. adjust EMI amount  
      2. adjust loan duration
      3. adjust next installments

     3. Capture new fields for loan product and account(editable only from product level but will maintain a copy at account level)

     4. Add new screen for pre-payment(internally same as repayment but will return recalculated interest by setting closure date as today)

     5. change schedule generator to use newly added days in year and days in month values

 

Questions

Below is a list of questions to be addressed as a result of this requirements document:

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