Loan Schedule Scenarios At Loan Disbursement
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
One difference when creating loan accounts with LSIM turned on and off is, when LSIM is turned on, loan accounts schedule must match the client meeting schedule, with LSIM turned off, for weekly it is possible to choose the frequency (e.g. 1 or 2 weeks) and also the day of the week the installment should occur on (monday - sunday etc)
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!)
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 9-feb-2011)
(orginal schedule is schedule after disbursement!)
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!)
late disbursement
on wed 10th Feb - disbursed loan account (schedule at account disbursal, disbursed on 10-feb-2011, first installment starting from 16-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: First installment remained on 9th of feb with LSIM on but didn't for LSIM off? why?
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: exact same as LSIM off
late disbursement
on thurs 3rd Feb - disbursed loan account (schedule at account disbursal, disbursed on 3-feb-2011, first installment starting from 9-feb-2011)
(orginal schedule is schedule after disbursement!)
NOTE: exact same as LSIM off
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: exact same as LSIM off
late disbursement
on wed 10th Feb - disbursed loan account (schedule at account disbursal, disbursed on 10-feb-2011, first installment starting from 16-feb-2011)
(orginal schedule is schedule after disbursement!)
NOTE: exact same as LSIM off
Variable loan product with Declining Balance Interest Rate
LSIM Off
Cannot create loan products with variable installments when LSIM is off
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)
Standard Loan product with Interest Recalculation
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)
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 9-feb-2011)
(orginal schedule is schedule after disbursement!)
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!)
late disbursement
on wed 10th Feb - disbursed loan account (schedule at account disbursal, disbursed on 10-feb-2011, first installment starting from 16-feb-2011)
(orginal schedule is schedule after disbursement!)
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: First installment remained on 9th of feb with LSIM on but didn't for LSIM off? why?
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: exact same as LSIM off
late disbursement
on thurs 3rd Feb - disbursed loan account (schedule at account disbursal, disbursed on 3-feb-2011, first installment starting from 9-feb-2011)
(orginal schedule is schedule after disbursement!)
NOTE: exact same as LSIM off
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: exact same as LSIM off
late disbursement
on wed 10th Feb - disbursed loan account (schedule at account disbursal, disbursed on 10-feb-2011, first installment starting from 16-feb-2011)
(orginal schedule is schedule after disbursement!)
NOTE: exact same as LSIM off