How to make transactions for a loan account

Regardless of whether the loan is held by a client or a group, the process of making transactions is the same.

In any Search box, type the name of the client or the group (or the number of the loan account, if you know it). If you type the client or group name, a list appears with all clients and groups having that name. Click the link for the correct one and, from the details page that appears, click the link for the correct loan account.

Then follow these instructions for the transaction that you want to make.

How to apply payments

In the Transactions box at the upper right of the screen, click Apply Payments.
A screen like the following appears:

Enter information using the descriptions in the following table:

Field	Description
Date of Transaction	This shows today's date. If you need to change this date because the payment took place at another time, type the day (XX), month (XX), and year (XXXX) of the payment.
Amount	The amount of the payment. If the borrower is making only a partial payment, type the amount of this payment.
Mode of Payment	The way the payment was made.
Receipt ID	The number of the receipt, if you use one.
Receipt Date	Date the receipt was issued, if you used one.

When you are done, click Review Transaction to review your work.

For information on uploading administrative documents that you can use for payment transactions, see "How to manage administrative documents." You can get information on entering information on several accounts at the same time; see "How to enter collection sheet data."

How to apply adjustments

Sometimes errors occur when payments for a loan are recorded. If you need to cancel the full amount of the last repayment, you can do this by making an "adjustment." If you need to cancel several repayments, you must do each one separately.

When you have made an adjustment, Mifos divides the cancelled payment into principal, interest, and fees, and makes adjustments in each of these categories to the total amount still due for the loan.

Follow these instructions:

In the Transactions box at the upper right of the screen, click Apply Adjustment.
Note: If no payments have been made up to the present for this loan, this button does not appear.
A screen like the following appears, showing the last payment made:
Check the Check to Revert the Last Payment box.
In the Notes box, type information describing why you made this adjustment.
When you have made the adjustment, click Review Adjustment to review your work and click Submit.

How to repay a loan

You can repay the entire remaining loan balance at once using the Repay Loan link. After following these instructions, the status of the loan will change to "Closed - Obligation Met".

In the Transactions box at the upper right of the screen, click Repay Loan.
A screen like the following appears:
Enter information using the descriptions in the following table:

Field	Description
Mode of Payment	The way the payment was made
Receipt ID	A number for the receipt, if you use one.
Receipt Date	The date the receipt was issued, if you use one.

When you are done, click Review Transaction to review your work.
If you want to make changes, click Edit Transaction, make any changes, and click Review Transaction again.
When you are satisfied with all changes, click Submit.

How to apply charges and fees

If you want to apply fees or penalties directly to the loan, following these instructions.

In the Transactions box at the upper right of the screen, click Apply Charges.
A screen like the following appears:
Enter information using the descriptions in the following table:

Field	Description
Select Charge type	Click the appropriate charge or fee. These are loan fees that have been created or you can select Misc Fee or Misc Penalty
Amount	The amount to apply. If there is a set amount for this charge, it appears in the Amount box; type over this to change it.

Click Submit.
The charge now appears in the Upcoming Charges and the Recent Account Activity list. It will appear in Transaction History when posted.

Note the following:

In addition to the penalty calculated for delayed repayment, the user can apply a "Misc penalty" amount to the account. If a Misc Penalty amount is applied to the account, the same will be included in the next payment due for the account.
If the penalty rate is changed in between two payments, the old penalty rate should be taken for calculation until the date the change was made.
A penalty is not calculated until the day after the due date.

How to remove recurring account fees

In the Recurring Account Fees section, near the bottom of the account details screen, a list of recurring account fees associated with the account are listed. Click Remove for the fee you wish to remove. The fee is now gone from the Account Details section and is no longer associated with the loan account.

How to do an early repayment of Loan

After a loan is disbursed, a client can make repayments at any time. The date of repayment need not necessarily be on the date the amount is due. The repayment can be either partial or a full repayment of the total amount outstanding. Depending on the type of loan repayment (whether full or partial), one of the following repay options is used in Mifos:

Repay Loan
Apply Payment

Difference between Repay Loans and Apply Payments:

Apply Payments:

This is used in case of partial repayment of loan amount, where the repay amount is not equal to the amount due on a specific date. In this case, details of this transaction can be recorded into the Mifos system by modifying the default amount and entering an amount less than the expected amount. Before processing and saving the transaction details, Mifos performs the following validations:

Date of transaction should be between the last payment date and current date
Amount entered is not greater than the total amount outstanding on that account.

Repay Loans:
After loan disbursal, the client can at any time repay the entire loan in a single payment. To record a total repayment, the Repay Loans option is used. The system calculates the total amount due as of the current date as follows:

Principal: The principal is calculated as the sum total of principal due in unpaid, due and future installments.
Interest: Interest is calculated depending on whether the waive interest feature is enabled - this is explained in greater detail in the next section.
Fees: The fees due for all future installments is not included, but the fees due for all past unpaid installments and the current installment is included in the total due.
Penalty: This includes miscellaneous penalties and penalties due to late repayments, if any. The total includes miscellaneous penalties, both for the current instalment and for those due through the last installment.

Early repayment of Loans - Repay Loans and Waive Interest

Scenario: If the client repays the loan earlier than the due date and the loan product has been marked as ‘Can Waive Off Interest’.

1. Click Repay Loan link on the Loan Details page (top right of the screen). A screen like the following appears:

2. As shown in the screenshot above, the Can Waive Off Interest option is enabled. (This is because the loan product has been marked as Can Waive Off Interest). Depending on your MFI’s current requirement, you have the option to disable it or retain it.

Waive Interest Option Disabled: The Amount is calculated by waiving off all the future fee, future interests. The payment due interest is included in the calculate amount and the penalty is not waived off.

Waive Interest Option Enabled: The Amount is calculated by waiving off all the future fee, future interests and the payment due interest. The penalty is not waived off.

3. Select the appropriate mode of payment from the list provided. The receipt ID and receipt date are optional fields. After entering the required details, click Review Transactions. A screen like the following appears:

4. If any changes need to be made, click Cancel. This will direct back to the Loan Details page. Click Repay Loan again to make the necessary changes to the transaction.
If all details are in order, click Submit.

5. The status of the loan should read ‘Closed-obligation met’ as shown below.

To further verify that the transaction has indeed been recorded as 'closed' by the Mifos system, check that the Loans Balance field in the Accounts Summary section reads 0 (refer screenshot above).

Click View Repayment Schedule (in the Accounts summary section). The Repayment schedule should display all installments under the Installments Paid section.