Loan Tracking strategies
- Nayan Ambali
- Janiline Ebai
Understanding key terminologies and concepts for Loan Tracking strategies
Tracking strategy: Tracking a loan account at group level, at client level or at both
Loan Tracking strategies supported by MifosX
- Individual Loan Individual Tracking (ILIT) – Loan is tracked at individual level
- Individual Loan Individual Tracking mapped to Group (ILITG)– Loan is tracked at an individual level but it is associated with group through which the client has applied for the loan
- Group Loan Individual Tracking and Group level Tracking ( GLITGT) - Tracked at both individual level and consolidated at a group level
- Group Loan Group level Tracking (GLGT)- Tracked at group level only
Bulk Loan creation: This feature is more for creating Individual Loans or Group Loans for set of clients or groups in single screen (in general, a Bulk Loan is not equal to Group Loan)
Examples:
Individual Loan Individual Tracking (ILIT): Similar to classic Mifos Individual loans
Eligibility: An individual client or client within a group can take this loan (ideally any client can take this loan)
Client applies for 10,000 INR and if approved gets 10,000 INR as loan and all further activities are tracked at this loan account.
Individual Loan Individual Tracking mapped to Group (ILITG): Similar to classic Mifos Individual loans where client is a member of a Group ( in Mifos it is referred as GLIM)
Eligibility: Client needs be mapped to at-least one group.
Client applies for 10,000 INR through a group and if approved gets 10,000 INR as loan and all the further activities are tracked at this loan account.
In this scenario we track how many loans are disbursed through this group and their performance
Group Loan Individual Tracking and Group level Tracking (GLITGT): Mifos does not support this feature
Eligibility: Group with at least one client.
For example Group named Goodwill has 5 members named Harry, Marry, Nita , Rani , Sita
Goodwill applies for GLITGT loan
Mifos X shows up a Group Loan application Form with following details
| Loan Product Name | Some loan | |||
| Group Loan amount | 50,000 INR (1% processing fees) | |||
| Loan Account number | GL200012 | |||
| interest rate | 10 % flat annually | |||
| Repayment frequency and duration | Every one month for 12 instalments | |||
| Split equally | Yes / No (if yes individual loan amounts becomes un-editable) | |||
| Client Names | Ind loan acct number | Loan Amt | Charges | % of total amt |
| Harry | GL200012-1 | 10,000 INR | 100 INR | 20% |
| Marry | GL200012-2 | 10,000 INR | 100 INR | 20% |
| Nita | GL200012-3 | 10,000 INR | 100 INR | 20% |
| Rani | GL200012-4 | 5000 INR | 50 INR | 10% |
| Sita | GL200012-5 | 15,000 INR | 150 INR | 30% |
After disbursing
| Account holder | Principal | Interest | Principal Paid | Interest Paid | Due | Status |
| Group Account | 50,000 | 5000 | 0 | 0 | 0 | Good |
| Harry | 10,000 | 1000 | 0 | 0 | 0 | Good |
| Marry | 10,000 | 1000 | 0 | 0 | 0 | Good |
| Nita | 10,000 | 1000 | 0 | 0 | 0 | Good |
| Rani | 5000 | 500 | 0 | 0 | 0 | Good |
| Sita | 15,000 | 1500 | 0 | 0 | 0 | Good |
After First payment (Say Nita misses her payment)
| Account holder | Principal | Interest | Principal Paid | Interest Paid | Due | Status |
| Group Account | 50,000 | 5000 | 3333.333 | 333.333 | 833.3 + 83.3 | Good |
| Harry | 10,000 | 1000 | 833.3333 | 83.3333 | 0 | Good |
| Marry | 10,000 | 1000 | 833.3333 | 83.3333 | 0 | Good |
| Nita | 10,000 | 1000 | 0 | 0 | 833.3 + 83.3 | Good |
| Rani | 5000 | 500 | 416.6667 | 41.6667 | 0 | Good |
| Sita | 15,000 | 1500 | 1250 | 125.0 | 0 | Good |
After Second payment (Say again Nita misses her payment)
| Account holder | Principal | Interest | Principal Paid | Interest Paid | Due | Status |
| Group Account | 50,000 | 5000 | 6666.66 | 833.3333 | 1666.66 + 166.66 | Bad |
| Harry | 10,000 | 1000 | 1666.667 | 166.6667 | 0 | Good |
| Marry | 10,000 | 1000 | 1666.667 | 166.6667 | 0 | Good |
| Nita | 10,000 | 1000 | 0 | 0 | 1666.66 + 166.66 | Bad |
| Rani | 5000 | 500 | 833.3333 | 83.33333 | 0 | Good |
| Sita | 15,000 | 1500 | 2500 | 250 | 0 | Good |
You can write-off loan at group level (upon writ-off all individual loans will also written-off)
You can close group loans only if all individual loans have been closed
You can close sub loans.
Group Loan Group level Tracking (GLGT)
Eligibility: Need a group.
Group applies for a loan and one group loan account shall be created and same A/c number is used for tracking of all further transactions. This is Identical to individual loans but applied to Groups