[FINERACT-1569] Interests are excessively accrued for the whole period despite early full repayment

• Type: Bug
• Status: Open
• Priority: Major
• Resolution: Unresolved
• Affects Version/s: 1.5.0
• Component/s: Loan
• Assignee: Unassigned
• Reporter: Łukasz Wójcik
• Created: 07/Apr/22 08:50
• Updated: 07/Apr/22 08:50

Description

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