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  1. Apache Fineract
  2. FINERACT-1569

Interests are excessively accrued for the whole period despite early full repayment



    • Bug
    • Status: Open
    • Major
    • Resolution: Unresolved
    • 1.5.0
    • None
    • Loan
    • None


      Given: daily interest loan with compounding on interests

      And: repayment strategy set to Principal, Interest, Penalties, Fees

      And: prepay loan returning X for today

      When: repayment of X is made

      Then: some interests are still outstanding

      And: loan is not closed


      What happens under the hood is that AbstractLoanScheduleGenerator.generate() recalculates interests for the whole loan term. For days after the transaction date the principal becomes 0, but compounding on interests results in producing some small amounts for each day.
      `prepayLoan` calculates the interests only for period <loanStartDate, transactionDate>. It also seems to be working fine if the repayment strategy is `interestFirst`.

      Please find the product configuration:

      and the loan:

      Prepay Loan returning 100.33 interests

      After repayment transaction (100.33 interests paid, but 13.91 more outstanding)

      We're using the `1.5.0` version, but I'va managed to reproduce this issue on fineract.dev. Here's the loan product: https://openmf.github.io/community-app/?baseApiUrl=https%3A%2F%2Fdemo.fineract.dev&tenantIdentifier=default#/viewloanproduct/27and the loan: https://openmf.github.io/community-app/?baseApiUrl=https%3A%2F%2Fdemo.fineract.dev&tenantIdentifier=default#/viewloanaccount/62


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          Łukasz Wójcik
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          Łukasz Wójcik
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          Łukasz Wójcik
        4. image-2022-04-07-10-40-57-593.png
          127 kB
          Łukasz Wójcik



            Unassigned Unassigned
            lukasz-w Łukasz Wójcik
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