Uploaded image for project: 'Apache Fineract'
  1. Apache Fineract
  2. FINERACT-1307

Loan Ideal disbursement to calculation cause to wrong interest rate

    XMLWordPrintableJSON

    Details

    • Type: Bug
    • Status: Open
    • Priority: Minor
    • Resolution: Unresolved
    • Affects Version/s: None
    • Fix Version/s: 1.5.0
    • Component/s: Loan
    • Labels:
      None

      Description

      ISSUE
      My issue/bug happens when I am setting "First repayment on" field I get a repayment schedule with a wrong interest rate for the first installment.
      Example: When I set "First repayment on" to 01/02/21 and expected disbursement is 27/1/21(Frist image) then I get the wrong interest.The first installment interest is 21,232.88$ (second Image) - calculated for the entire month (31 days) instead of 5 days (the time from the disbursement to the first repayment), the right interest should be 3424.75$.

      After debugging:
      In AbstractLoanScheduleGenerator there is a function calculateInterestStartDateForPeriod - it uses the idealDisbursment for setting the interest start date for the first installment, The idealDisbursment is calculated by idealDisbursementDateBasedOnFirstRepaymentDate which does [{{firstRepaymentDate}} - 1 repayment Period Frequency] aka, for 01/02/21 with months as repyment frequency it will return 01/01/21.

      So when we dont set the "First repayment on" the idealDisbursment will be the expected disbursement date because the first repayment is always expectedDisbursment+1. But if we set the  "First repayment on" we get the wrong value for the idealDisbursment - in my example we got 01/0/21 and this is why the first installment interest was calculated for an entire month instead of  5 days.

      Is it a bug or not?
      I am not sure why idealDisbursementDateBasedOnFirstRepaymentDate exists, the simple solution is to do  idealDisbursment=expectedDisbursmentDate.I tried it locally and looks like it works, I will be happy to make a PR, but want to make sure indeed that the idealDisbursementDateBasedOnFirstRepaymentDate is redundant.

        Attachments

        1. image-2021-02-02-16-43-07-381.png
          209 kB
          bharath gowda

          Issue Links

            Activity

              People

              • Assignee:
                eitan-fr eitan frailich
                Reporter:
                eitan-fr eitan frailich
              • Votes:
                0 Vote for this issue
                Watchers:
                3 Start watching this issue

                Dates

                • Created:
                  Updated: