Ideas for the Mambu Banking Engine

Capitalisation of Interest when rescheduling P2P loans

What: Allow for interest to be capitalised when rescheduling a P2P loan account. This would add the interest applied but not yet paid to the loan principal, increasing the principal balance (and therefore might require additional funding from the investors). 
 
Why: Many organisations capitalise interest when rescheduling a loan. It is a very typical approach for both for P2P and non-P2P businesses as it allows to carry forward the interest balance into the new loan, instead of writing it off completely.
Currently, this would only be possible by closing the current account and opening a new one. However this process is quite complicated and it creates an impression that a loan was fully repaid in the meantime and a completely new loan was disbursed, because the link between the original and rescheduled account is lost (it can only be kept in a custom field).
  • Dorota Nosal
  • Nov 15 2016
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