Aging in Arrears Feature

Background
Almost all MFIs need a report which gives a status of loan accounts in arrears. This feature maintains a summary table that captures arrears data so that it can be easily accessed by the reporting module.

Feature summary
Below are the requirements for this table:

• Per Client, per group, per center, per branch, following information is required:

• Number of loans and amount of unpaid balance of loans (total unpaid balance, and broken down by unpaid principal and unpaid interest) in arrears by following timeframe:
  • 1 - 7 days overdue (1 week)
  • 8 - 14 days overdue (2 weeks)
  • 15- 21 days overdue (3 weeks)
  • 22 - 28 days overdue (4 weeks)
  • 19 - 35 days overdue (5 weeks)
  • 1- 30 days overdue
  • 31- 60 days overdue
  • 61 - 90 days
  • 91 - 180 days
  • Greater than 181 days

• Standard practice is to have only 1-30 days; 31 - 60 days, etc. However, for MFIs with weekly repayment rates, a weekly breakdown for the first month is important. This doesn't fully match GK's current report, but it should be sufficient for their needs.

• For each of the buckets identified, report is required know number of clients that have at least 1 loan in arrears for that period of time i.e., number of clients with loans 1-7 days in arrears, etc.

Feature description

• To meet the above requirement and enable MFIs to pull out the arrears report, the following summary table is maintained by the Mifos system:
  • Client/group name, client/group ID
  • Parent ID
  • Branch ID
  • Loan account ID
  • No. of days in arrears
  • Unpaid principal
  • Unpaid interest
  • Unpaid balance (= unpaid principal + unpaid interest)
  • Overdue principal
  • Overdue interest
  • Overdue balance (=Overdue principal + Overdue Interest)

• This table is updated every night.

• Days in arrears is the same as the metric used in “Performance history” for loan accounts and is = payment due date (for the first unpaid/partially paid installment) – current date

• When a client misses a payment, the counter for “days in arrears” starts.

• This counter is reset to 0 when a client makes a payment that completely pays off his/her overdue amount.

• The count is not altered if a client makes a partial payment.

• When an adjustment is made and the last payment is nullified in an account, this count is recalculated by the system

• This job does not consider loan accounts in the following states
  • Cancelled
  • Closed- obligation met
  • Closed- reschedule
  • Closed- written off