diff --git a/fineract-doc/src/docs/en/chapters/features/downpayment.adoc b/fineract-doc/src/docs/en/chapters/features/downpayment.adoc new file mode 100644 index 000000000..819251e2b --- /dev/null +++ b/fineract-doc/src/docs/en/chapters/features/downpayment.adoc @@ -0,0 +1,186 @@ += Downpayment + +== Overview + +Downpayment is a feature that allows a customer to make a partial payment at the time of loan application. +It is an initial instalment due the same day as the disbursement. Every disbursement initiates a downpayment. +The downpayment amount is then used to reduce the loan amount. + +== Configuration + +Downpayment can be configured in the loan product settings. + +On the Settings tab there is a checkbox called 'Enable downpayment'. +Clicking on it brings up two attributes which can be set on downpayment: + +* ‘Disbursed Amount percentage Down Payment’ - mandatory field. Here can be set that how many percent of the Disbursed amount will be the actual downpayment. +* ‘Enable Auto Repayment for Down Payment’ - optional, checkbox. If enabled, downpayment will be automatically paid on raising. + +== Scope + +Downpayment can be applied both for Loan products with Loan schedule type: cumulative and progressive. + +Loans with or without interest can have downpayment. + +== Usage + +Downpayment can be used in the loan application process. + +When a new Loan is created with a Loan Product that has downpayment enabled, the downpayment amount is calculated based on the 'Disbursed Amount percentage Down Payment' attribute. + +In the Repayment schedule the downpayment is shown as a separate instalment due on the same day as the disbursement. If 'Enable Auto Repayment for Down Payment' is enabled, the downpayment will be automatically paid on raising. + +Downpayment does not count as an installment in the context that upon loan creation if X installments set, then the downpayment will be the first (initial) installment followed by X regular installments. + +If the downpayment is not paid on time, it will be marked as overdue the same way as a regular installment. + +Reversing a disbursement also rolls back the associated downpayment transaction. + +Charges due on dowpayment date will be added to the first installment, not to the downpayment. + +In case of interest bearing loan, interest will not be realised on downpayment. + +== Example + +We have a progressive Loan product, with disbursed amount 100, 7% annual interest rate, 6 installments and 25% downpayment with auto repayment enabled. + +Repayment schedule on disbursement day: + +[cols="1,1,3,3,2,2,2,1,1,1,1,1,1,1", options="header"] +|=== +| Nr +| Days +| Date +| Paid date +| Balance of loan +| Principal due +| Interest +| Fees +| Penalties +| Due +| Paid +| In advance +| Late +| Outstanding + +| +| +| 01 January 2024 +| +| 100.0 +| +| +| 0.0 +| +| 0.0 +| 0.0 +| +| +| + +| 1 +| 0 +| 01 January 2024 +| 01 January 2024 +| 75.0 +| 25.0 +| 0.0 +| 0.0 +| 0.0 +| 25.0 +| 25.0 +| 0.0 +| 0.0 +| 0.0 + +| 2 +| 31 +| 01 February 2024 +| +| 62.68 +| 12.32 +| 0.44 +| 0.0 +| 0.0 +| 12.76 +| 0.0 +| 0.0 +| 0.0 +| 12.76 + +| 3 +| 29 +| 01 March 2024 +| +| 50.29 +| 12.39 +| 0.37 +| 0.0 +| 0.0 +| 12.76 +| 0.0 +| 0.0 +| 0.0 +| 12.76 + +| 4 +| 31 +| 01 April 2024 +| +| 37.82 +| 12.47 +| 0.29 +| 0.0 +| 0.0 +| 12.76 +| 0.0 +| 0.0 +| 0.0 +| 12.76 + +| 5 +| 30 +| 01 May 2024 +| +| 25.28 +| 12.54 +| 0.22 +| 0.0 +| 0.0 +| 12.76 +| 0.0 +| 0.0 +| 0.0 +| 12.76 + +| 6 +| 31 +| 01 June 2024 +| +| 12.67 +| 12.61 +| 0.15 +| 0.0 +| 0.0 +| 12.76 +| 0.0 +| 0.0 +| 0.0 +| 12.76 + +| 7 +| 30 +| 01 July 2024 +| +| 0.0 +| 12.67 +| 0.07 +| 0.0 +| 0.0 +| 12.74 +| 0.0 +| 0.0 +| 0.0 +| 12.74 +|=== +