Group Lending

Contents:

Introduction

In previous version of Mifos, it was possible to create group loan with monitoring of every member (GLIM on) and also to create group loan without specifying members (GLIM off). Individual member accounts were only for information purposes, so they had only little connection to group account (e.g. after closing client, he was still visible on the Group account). There was also no possibility to repay individual member account because there was no access to those accounts and as a result, payments could be only applied to the whole group loan account. So, in general, there was a Group loan account and individual member accounts only for information purposes.

In MifosX there will be a new approach of Group Loan account. There will be individual member accounts and Group loan account only for information purposes. During the Group loan creation, also individual accounts will be created for every member of group loan. Group loan account will be will be a sum of member's accounts. It would be possible to access every individual member loan account, so that there will be a possibility to repay every individual account or close it, and information about that will be immediately visible on Group loan account. While applying payment to the entire Group loan, it would be possible to specify exact payment amount of every member. This new approach will be more flexible and will meet more client requirements.

Goals

• Possibility to create products for Groups
• Possibility to create Group Loan account with individual member loan accounts
• Ability to apply payment to Group Loan and also to individual member loan accounts
• Possibility to apply payment to entire Group loan with automatic amount deduction and option to manually edit payment amount for every individual member
• Possibility to apply payment to individual member loan account
• Possibility to access individual member loan account from Client details page
• Possibility to adjust transactions on Group loan account with option to manually correct amount for every individual member
• Possibility to adjust transactions made on individual account
• Possibility to apply charges to group account with automatic amount deduction (according to contribution of every member) and option to manually edit charge amount for every individual member
• Possibility to apply charges to individual member loan account
• Possibility to apply full repay to individual member loan account and also to group loan account
• Amounts on group account are sum of amounts on member accounts
• No possibility to modify loan account parameters from member accounts

Non-Goals

The following items will not be addressed in this release:

• Redo Group Loan
• Reverse Group Loan
• Security (adjustment for historical transactions can be done only by user with super permissions profile, normal user can only adjust the last transaction) (Must be added in version 1.0)
  

• Possibility to add documents to Loan account (Must be added in version 1.0)
  

• Possibility to attach surveys to Loan account (Must be added in version 1.0)
  

• Possibility to repay charge by transfer from savings account (Must be added in version 1.0)
  

• Possibility to configure the time of applying a charge (at disbursement, when moving to approved state) (Must be added in version 1.0)

• Option that sum of edited amounts should be equal to amount entered as payment for entire Group can be added if it is required by MFI.
  

Related Documents

Epic issue:

Definitions and Terminology

• Points marked in navy color are related to requirements gathered from Polly (Jitegemea)

User Stories

List high level user stories - these can be broken down later into small user stories / user tasks if needed

1. Use Cases - creating Group loan account (Priority #1)

All flows are based on Individual Lending Javascript App

Related issue:

1.1 User can create Group loan account by using previously created product

Actors

• User with permissions to create Group Loan accounts

Preconditions

• Loan product for Group was previously created

Basic Flow

1. From 'Group details' page, user clicks 'New loan application'
2. User selects previously created product
3. Select type of product: "Group loan"
4. Page with loan parameters and schedule is displayed
5. User can select members of group loan from the list (list contains only clients who are members of this group)
6. User can enter amount of every member. Total group loan amount is a sum of amounts from every member
7. User click 'Submit'.

Post-condition

• Group loan account is created along with individual accounts for every selected member of Group. 

Validations

• Individual accounts are created only for members selected during loan creation, not for all members of the Group.

Alternative flow

• Loan product was not previously created.
• At 2. there is a validation message that no products are available.

1.2 User can display Group loan details

Actors

• User with permissions to create and display Group Loan accounts

Preconditions

• Group Loan account was previously created

Basic Flow

1. From 'Group details' page, user clicks link with Loan name in 'Loan Accounts Overview' section
2. Group loan details page is displayed with four information tabs: "Details", "Schedule", "Transactions" and "Additional Data" and also with transactions tabs: "Undo disbursal", "Modify", "Loan repayment", "Waive interest", "Write-off", "Close (as rescheduled)" and "Close".
3. "Details" is a default tab after opening Group loan details page.
4. User has possibility to view schedules of every member of group account from Group loan details page.

Post-condition

• Group loan details page has the same options as Client loan details page and also possibility to view schedules of every group loan member.

1.3 User can display individual member loan account details

Actors

• User with permissions to create and display Group Loan accounts

Preconditions

• Group Loan account was previously created

Basic Flow

1. There is a new section on Client details page: "Group Loan Accounts Overview".
2. User can display individual member loan account details by clicking on Group loan account name.
3. Individual member loan account details page is displayed with four information tabs: "Details", "Schedule", "Transactions" and "Additional Data" and also with transactions tabs: "Loan repayment", "Waive interest", "Write-off", "Close (as rescheduled)" and "Close".
4. "Details" is a default tab after opening Individual member loan account details details page.

Post-condition

• Individual member loan account details page has almost the same options as Client loan details page but "Undo disbursal" and "Modify" tabs are not available.

1.4 User can modify parameters of Group Loan account

Actors

• User with permissions to create and display Group Loan accounts

Preconditions

• Group Loan account was previously created

Basic Flow

1. User opens Group Loan account details page
2. User clicks on 'Modify' button
3. User has possibility to modify all loan parameters
4. User clicks 'Save' button to submit changes

Post-condition

• Group Loan account can be modified only from Group details page
• Group Loan account parameters cannot be modified from individual member account

1.5 User can disburse Group Loan account

Actors

• User with permissions to disburse Group Loan accounts

Preconditions

• Group Loan account was previously created

Basic Flow

1. User opens Group Loan account details page
2. User clicks on 'Disburse' button
3. User clicks 'Save' button to disburse Group Loan

Post-condition

• Group Loan account can be disbursed only from Group details page
• Group Loan account cannot be disbursed from individual member account

2. Use Cases - payments

All flows are based on Individual Lending Javascript App

2.1 User can apply payment (with amount equal to installment amount) to entire Group Loan account

Actors

• User with permissions to create and display Group Loan accounts
• User with permissions to apply payments to Group Loan accounts

Preconditions

• Group Loan account was previously created

Basic Flow

1. User opens Group Loan account details page
2. User clicks on 'Loan repayment' button
3. User enters total payment amount
4. Amount is automatically deducted according to contribution of every member in Group Loan account
5. In the next step, user has possibility to has to edit payment amount for every member
6. User clicks 'Submit' button

Post-condition

Payment is applied to every member loan account and also information about payment is updated on Group loan account.

2.2 User can apply payment (with amount greater than installment amount) to entire Group Loan account

Actors

• User with permissions to create and display Group Loan accounts
• User with permissions to apply payments to Group Loan accounts

Preconditions

• Group Loan account was previously created

Basic Flow

1. User opens Group Loan account details page
2. User clicks on 'Loan repayment' button
3. Amount is automatically deducted according to contribution of every member in Group Loan account
4. In the next step, user has possibility to has to edit payment amount for every member
5. User clicks 'Submit' button

Post-condition

• First the whole installment amount is repaid on individual member accounts and also information about payment is updated on Group loan account.. After that overpayment amount is applied to the next installment on individual member accounts also information about payment is updated on Group loan account.
• Amount of interest for next installment is recalculated according to the decreased principal amount.

2.3 User can apply payment (with amount partial installment amount) to entire Group Loan account

Actors

• User with permissions to create and display Group Loan accounts
• User with permissions to apply payments to Group Loan accounts

Preconditions

• Group Loan account was previously created

Basic Flow

1. User opens Group Loan account details page
2. User clicks on 'Loan repayment' button 
3. Amount is automatically deducted according to contribution of every member in Group Loan account 
4. In the next step, user has possibility to has to edit payment amount for every member
5. User clicks 'Submit' button

Post-condition

• Partial amount is applied to the current installment on Group Loan account and also on individual member accounts.
• Amount of interest is recalculated since installment has not been fully repaid.

2.4 User can apply payment (with amount equal to installment amount) to individual member account

Actors

• User with permissions to create and display Group Loan accounts
• User with permissions to apply payments to Group Loan accounts
• User with permissions to apply payments to individual member accounts

Preconditions

• Group Loan account was previously created

Basic Flow

1. User opens individual member account details page
2. User clicks on 'Loan repayment' button
3. User has possibility to specify payment amount
4. User clicks 'Submit' button

Post-condition

• Payment is applied to individual member loan account and information about payment is automatically updated on Group Loan account. Amount of installment to be repaid on Group Loan schedule is decreased with amount equal to this paid on individual member account. Amount which has already been repaid should be displayed in 'Total Paid' column.

2.5 User can apply payment (with amount greater than installment amount) to individual member account

Actors

• User with permissions to create and display Group Loan accounts
• User with permissions to apply payments to Group Loan accounts
• User with permissions to apply payments to individual member accounts

Preconditions

• Group Loan account was previously created

Basic Flow

1. User opens individual member account details page
2. User clicks on 'Loan repayment' button
3. User enters overpayment amount
4. User clicks 'Submit' button

Post-condition

• First the whole installment is repaid on individual member account. After that overpayment amount is applied to the next installment on individual member account.
• Amount of installment to be repaid on Group Loan schedule is decreased with amount equal to this paid on individual member account. Amount which has already been repaid should be displayed in 'Total Paid' column.
• Overpayment amount is applied to the next installment on Group Loan account with amount equal to overpayment amount on individual member account.
• Amount of interest for next installment is recalculated according to the decreased principal amount.

2.6 Use Case - User can apply payment (with partial installment amount) to individual member account

Actors

• User with permissions to create and display Group Loan accounts
• User with permissions to apply payments to Group Loan accounts
• User with permissions to apply payments to individual member accounts

Preconditions

• Group Loan account was previously created

Basic Flow

1. User opens individual member account details page
2. User clicks on 'Loan repayment' button
3. User enters partial payment amount
4. User clicks 'Submit' button

Post-condition

• Partial amount is applied to the current installment on individual member account.
• Amount of interest is recalculated since installment has not been fully repaid.
• Amount of installment to be repaid on Group Loan schedule is decreased with amount equal to this paid on individual member account. Amount which has already been repaid should be displayed in 'Total Paid' column.
• Amount of interest on Group Loan schedule is recalculated since installment has not been not fully repaid.

3. Use Cases - adjustments

All flows are based on Individual Lending Javascript App

3.1 User can apply adjustment to entire Group Loan account

Actors

• User with permissions to create and display Group Loan accounts
• User with permissions to apply adjustments to Group Loan accounts
• User with permissions to apply adjustments to individual member accounts

Preconditions

• Group Loan account was previously created
• Payment was previously applied to entire Group Loan account

Basic Flow

1. User opens Group Loan account details page
2. User goes to 'Transactions' tab
3. User clicks on 'Adjust' button next to the transaction
4. User has possibility to automatically modify/revert transaction made to of every individual member 
5. User clicks 'Save' button

Post-condition

• Transaction is adjusted on all individual member loan accounts and also information about adjustment is automatically updated on Group Loan account.
• Transaction applied only on individual member account cannot be adjusted from Group Loan account

3.2 User can apply adjustment to individual member loan account

Actors

• User with permissions to create and display Group Loan accounts
• User with permissions to apply adjustments to Group Loan accounts
• User with permissions to apply adjustments to individual member accounts

Preconditions

• Group Loan account was previously created
• Payment was previously applied to individual member account or to entire Group loan account

Basic Flow

1. User opens individual member loan account details page
2. User goes to 'Transactions' tab
3. User clicks on 'Adjust' button next to the transaction
4. User has possibility to adjust/modify transaction
5. User clicks 'Save' button

Post-condition

• Transaction is adjusted on individual member loan account.
• Group Loan account is updated accordingly to adjusted transaction on individual member account.

4. Use Cases - charges

All flows are based on Individual Lending Javascript App

4.1 User can apply charges to entire Group Loan account

Actors

• User with permissions to create and display Group Loan accounts
• User with permissions to apply charges to Group Loan accounts

Preconditions

• Group Loan account was previously created

Basic Flow

1. User opens Group Loan account details page
2. User clicks on 'Charge' button
3. Charge amount is automatically deducted according to contribution of every member in Group Loan account
4. In the next step, user has possibility to has to edit charge amount for every member
5. User clicks 'Save' button

Post-condition

• Charge is applied to individual member accounts and information about applied charges is automatically updated on Group Loan account (sum of individual charges).
• Charge applied from Group Loan account level can be only modified from Group Loan account level and cannot be modified from individual member account level

4.2 User can apply charges to individual member loan account

Actors

• User with permissions to create and display Group Loan accounts
• User with permissions to apply charges to individual member loan accounts

Preconditions

• Group Loan account was previously created

Basic Flow

1. User opens individual member loan account details page
2. User clicks on 'Charge' button
3. User charge amount for individual member
4. User clicks 'Save' button

Post-condition

• Charge is applied to individual member accounts and information about applied charges is automatically updated on Group Loan account.
• Charge applied from individual member account level can be only modified from individual member level and cannot be modified from Group Loan account level

4.3 User can apply payment for the charge to entire Group Loan account

Actors

• User with permissions to create and display Group Loan accounts
• User with permissions to apply charges to Group Loan accounts
• User with permissions to apply payments to Group Loan accounts

Preconditions

• Group Loan account was previously created
• Charge was previously applied to Group Loan account

Basic Flow

1. User opens Group Loan account details page
2. User clicks on 'Loan repayment' button
3. Amount is automatically deducted according to contribution of every member in Group Loan account
4. In the next step, user has possibility to has to edit payment amount for every member
5. User clicks 'Save' button

Post-condition

• Payment for charge is applied to individual member accounts and information about applied payments for charges is automatically updated on Group Loan account (sum of individual payments).

4.4 User can apply payment for the charge to individual member loan account

Actors

• User with permissions to create and display Group Loan accounts
• User with permissions to apply charges to individual member loan accounts
• User with permissions to apply payments to individual member loan accounts

Preconditions

• Group Loan account was previously created
• Charge was previously applied to individual member loan account

Basic Flow

1. User opens individual member loan account details page
2. User clicks on 'Loan repayment' button
3. User enters payment for the charge
4. User clicks 'Save' button

Post-condition

• Payment for charge is applied to individual member account and information about applied payment for charge is automatically updated on Group Loan account.

5. Use Cases - Loan product

All flows are based on Individual Lending Javascript App

5.1 User can create Loan products for Groups

Actors

• User with permissions to create Group Loan products

Preconditions

• Loan product for Groups has the same options as for individual Clients

Basic Flow

1. Open 'Organisation Administration' tab
2. Click on 'Add Loan Product'
3. Select type of product: "Group loan"
4. Enter all necessary product details
5. Click on 'Save' button

Post-condition

• Product can be selected during Group Loan account creation

Validations

• Standard validation for every field during the product creation

6. Use Cases - closing Group loan account

All flows are based on Individual Lending Javascript App

6.1 User can close entire Group Loan account

Actors

• User with permissions to close Group Loan accounts

Preconditions

• Group Loan account has already been created

Basic Flow

1. User opens Group Loan account details page
2. User clicks 'Close' button
3. User clicks on 'Save' button

Post-condition

• Group Loan account is closed as well as every individual member loan account.

Validations

• If any of the individual member loan account was previously closed then the rest of the accounts related to this Group loan account, are closed.

6.1 User can close individual member Loan account

Actors

• User with permissions to close individual member loan accounts

Preconditions

• Group Loan account has already been created

Basic Flow

1. User opens individual member loan account details page.
2. User clicks 'Close' button
3. User clicks on 'Save' button

Post-condition

• Individual member loan accountt is closed and information about this is automatically updated on Group Loan account

Functional Requirements

Standard Considerations

Security