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From Dayna Harp <dh...@mifos.org>
Subject Re: What is the purpose of the loan term vs number of repayments?
Date Tue, 22 Nov 2016 18:09:04 GMT
I agree that manually entering the number of repayments leads to confusion.  Loan term is the
key number of use as most FI’s loan policies speak to maximum allowable loan term and amount.
If a client has a loan for a period of 2 years or 24 months
If they select monthly repayment, the repayment should automatically calculate to 24. 
If they select bi-weekly payments, the system should automatically calculate 52.  
If they select weekly repayment, the system should automatically calculate 104. 


On Nov 22, 2016, at 10:51 AM, Ed Cable <edcable@mifos.org> wrote:

Hi community,

Could somebody explain to me why we have an input field for loan term in addition to number
of repayments. 

It always just seemed like an extraneous field that one manually had compute in one's head
based on the number of repayments multiplied by the repayment frequency.

Why I think it should be removed:

1) It's confusing to the user and extraneous
2) It also appears that it really has no bearing on the actual term of the loan as the only
validation for term is that loan term frequency must match that of repayment frequency. However
if you submit a loan account with a term of 24 months and 12 monthly repayments, the repayment
schedule rightfully has 12 monthly installments.
3) Term is nowhere to be found in the loan product configuration, just the configuration of
number of repayments. 

Am I missing some use case whereby a loan has a term or maturity date that's longer than the
number of installments 

If so, shouldn't we then only make this configurable when so desired since it's an edge case.



-- 
Ed Cable
Director of Community Programs, Mifos Initiative
edcable@mifos.org <mailto:edcable@mifos.org> | Skype: edcable | Mobile: +1.484.477.8649

Collectively Creating a World of 3 Billion Maries | http://mifos.org <http://mifos.org/>
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Dayna Harp
Director Global Credit Union Inclusion, The Mifos Initiative
dharp@mifos.org <mailto:edcable@mifos.org> | Skype: harpcreek | Mobile:  +501 628.9686

Ending Poverty One Line of Code at a Time | http://mifos.org <http://mifos.org/>  <http://facebook.com/mifos>

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