Aging in Arreas Feature

Background
Almost all MFI’s 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. For definition of terms like arrears and aging see Arrears Aging.

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 MFI’s to pull out the arrears report, the following summary table should be 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 should be 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” should start.

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

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

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

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