FINERACT-1443-loan-interest-recover-policy-fix-when-interest-more-than-EMI (#2033)

2022-02-18 23:52:51 +05:30
parent fbdceea384
commit 7c235c583b
16 changed files with 310 additions and 148 deletions
@@ -75,6 +75,10 @@ public interface ConfigurationDomainService {

    boolean isSkippingMeetingOnFirstDayOfMonthEnabled();

+    boolean isInterestToBeRecoveredFirstWhenGreaterThanEMI();
+
+    boolean isPrincipalCompoundingDisabledForOverdueLoans();
+
    Long retreivePeroidInNumberOfDaysForSkipMeetingDate();

    boolean isChangeEmiIfRepaymentDateSameAsDisbursementDateEnabled();
@@ -97,8 +101,6 @@ public interface ConfigurationDomainService {

    boolean isFirstRepaymentDateAfterRescheduleAllowedOnHoliday();

-    boolean isInterestToBeAppropriatedEquallyWhenGreaterThanEMI();
-
    String getAccountMappingForPaymentType();

    String getAccountMappingForCharge();
@@ -259,8 +259,13 @@ public class ConfigurationDomainServiceJpa implements ConfigurationDomainService
    }

    @Override
-    public boolean isInterestToBeAppropriatedEquallyWhenGreaterThanEMI() {
-        return getGlobalConfigurationPropertyData("is-interest-to-be-appropriated-equally-when-greater-than-emi").isEnabled();
+    public boolean isInterestToBeRecoveredFirstWhenGreaterThanEMI() {
+        return getGlobalConfigurationPropertyData("is-interest-to-be-recovered-first-when-greater-than-emi").isEnabled();
+    }
+
+    @Override
+    public boolean isPrincipalCompoundingDisabledForOverdueLoans() {
+        return getGlobalConfigurationPropertyData("is-principal-compounding-disabled-for-overdue-loans").isEnabled();
    }

    @Override
@@ -44,7 +44,8 @@ public class ScheduleGeneratorDTO {
    final boolean isSkipRepaymentOnFirstDayofMonth;
    final Boolean isChangeEmiIfRepaymentDateSameAsDisbursementDateEnabled;
    final boolean isFirstRepaymentDateAllowedOnHoliday;
-    final boolean isInterestToBeAppropriatedEquallyWhenGreaterThanEMI;
+    final boolean isInterestToBeRecoveredFirstWhenGreaterThanEMI;
+    final boolean isPrincipalCompoundingDisabledForOverdueLoans;

    public ScheduleGeneratorDTO(final LoanScheduleGeneratorFactory loanScheduleFactory, final ApplicationCurrency applicationCurrency,
            final LocalDate calculatedRepaymentsStartingFromDate, final HolidayDetailDTO holidayDetailDTO,
@@ -53,7 +54,8 @@ public class ScheduleGeneratorDTO {
            final Calendar calendar, final CalendarHistoryDataWrapper calendarHistoryDataWrapper,
            final Boolean isInterestChargedFromDateAsDisbursementDateEnabled, final Integer numberOfdays,
            final boolean isSkipRepaymentOnFirstDayofMonth, final Boolean isChangeEmiIfRepaymentDateSameAsDisbursementDateEnabled,
-            final boolean isFirstRepaymentDateAllowedOnHoliday, final boolean isInterestToBeAppropriatedEquallyWhenGreaterThanEMI) {
+            final boolean isFirstRepaymentDateAllowedOnHoliday, final boolean isInterestToBeRecoveredFirstWhenGreaterThanEMI,
+            final boolean isPrincipalCompoundingDisabledForOverdueLoans) {

        this.loanScheduleFactory = loanScheduleFactory;
        this.applicationCurrency = applicationCurrency;
@@ -71,7 +73,8 @@ public class ScheduleGeneratorDTO {
        this.isSkipRepaymentOnFirstDayofMonth = isSkipRepaymentOnFirstDayofMonth;
        this.isChangeEmiIfRepaymentDateSameAsDisbursementDateEnabled = isChangeEmiIfRepaymentDateSameAsDisbursementDateEnabled;
        this.isFirstRepaymentDateAllowedOnHoliday = isFirstRepaymentDateAllowedOnHoliday;
-        this.isInterestToBeAppropriatedEquallyWhenGreaterThanEMI = isInterestToBeAppropriatedEquallyWhenGreaterThanEMI;
+        this.isInterestToBeRecoveredFirstWhenGreaterThanEMI = isInterestToBeRecoveredFirstWhenGreaterThanEMI;
+        this.isPrincipalCompoundingDisabledForOverdueLoans = isPrincipalCompoundingDisabledForOverdueLoans;
    }

    public LoanScheduleGeneratorFactory getLoanScheduleFactory() {
@@ -150,7 +153,11 @@ public class ScheduleGeneratorDTO {
        return isFirstRepaymentDateAllowedOnHoliday;
    }

-    public boolean isInterestToBeAppropriatedEquallyWhenGreaterThanEMI() {
-        return isInterestToBeAppropriatedEquallyWhenGreaterThanEMI;
+    public boolean isInterestToBeRecoveredFirstWhenGreaterThanEMI() {
+        return isInterestToBeRecoveredFirstWhenGreaterThanEMI;
+    }
+
+    public boolean isPrincipalCompoundingDisabledForOverdueLoans() {
+        return isPrincipalCompoundingDisabledForOverdueLoans;
    }
 }
@@ -5623,7 +5623,8 @@ public class Loan extends AbstractPersistableCustom {
                rescheduleStrategyMethod, calendar, getApprovedPrincipal(), annualNominalInterestRate, loanTermVariations,
                calendarHistoryDataWrapper, scheduleGeneratorDTO.getNumberOfdays(), scheduleGeneratorDTO.isSkipRepaymentOnFirstDayofMonth(),
                holidayDetailDTO, allowCompoundingOnEod, scheduleGeneratorDTO.isFirstRepaymentDateAllowedOnHoliday(),
-                scheduleGeneratorDTO.isInterestToBeAppropriatedEquallyWhenGreaterThanEMI(), this.fixedPrincipalPercentagePerInstallment);
+                scheduleGeneratorDTO.isInterestToBeRecoveredFirstWhenGreaterThanEMI(), this.fixedPrincipalPercentagePerInstallment,
+                scheduleGeneratorDTO.isPrincipalCompoundingDisabledForOverdueLoans());
        return loanApplicationTerms;
    }

@@ -5905,7 +5906,7 @@ public class Loan extends AbstractPersistableCustom {
                compoundingCalendarInstance, compoundingFrequencyType, this.loanProduct.preCloseInterestCalculationStrategy(),
                rescheduleStrategyMethod, loanCalendar, getApprovedPrincipal(), annualNominalInterestRate, loanTermVariations,
                calendarHistoryDataWrapper, numberofdays, isSkipRepaymentonmonthFirst, holidayDetailDTO, allowCompoundingOnEod, false,
-                false, this.fixedPrincipalPercentagePerInstallment);
+                false, this.fixedPrincipalPercentagePerInstallment, false);
    }

    /**
@@ -286,8 +286,7 @@ public abstract class AbstractLoanScheduleGenerator implements LoanScheduleGener

            // will check for EMI amount greater than interest calculated
            if (loanApplicationTerms.getFixedEmiAmount() != null
-                    && loanApplicationTerms.getFixedEmiAmount().compareTo(principalInterestForThisPeriod.interest().getAmount()) < 0
-                    && !loanApplicationTerms.isInterestToBeAppropriatedEquallyWhenGreaterThanEMIEnabled()) {
+                    && loanApplicationTerms.getFixedEmiAmount().compareTo(principalInterestForThisPeriod.interest().getAmount()) < 0) {
                String errorMsg = "EMI amount must be greater than : " + principalInterestForThisPeriod.interest().getAmount();
                throw new MultiDisbursementEmiAmountException(errorMsg, principalInterestForThisPeriod.interest().getAmount(),
                        loanApplicationTerms.getFixedEmiAmount());
@@ -333,7 +332,9 @@ public abstract class AbstractLoanScheduleGenerator implements LoanScheduleGener
                    scheduleParams.getOutstandingBalance(), currentPeriodParams.getInterestForThisPeriod(),
                    currentPeriodParams.getFeeChargesForInstallment(), currentPeriodParams.getPenaltyChargesForInstallment(),
                    totalInstallmentDue, !isCompletePeriod);
-
+            if (principalInterestForThisPeriod.getRescheduleInterestPortion() != null) {
+                installment.setRescheduleInterestPortion(principalInterestForThisPeriod.getRescheduleInterestPortion().getAmount());
+            }
            addLoanRepaymentScheduleInstallment(scheduleParams.getInstallments(), installment);
            // apply loan transactions on installments to identify early/late
            // payments for interest recalculation
@@ -379,44 +380,6 @@ public abstract class AbstractLoanScheduleGenerator implements LoanScheduleGener
            scheduleParams.setTotalOutstandingInterestPaymentDueToGrace(Money.zero(currency));
        }

-        if (loanApplicationTerms.isInterestToBeAppropriatedEquallyWhenGreaterThanEMIEnabled()
-                && loanApplicationTerms.getInterestTobeApproppriated() != null
-                && loanApplicationTerms.getInterestTobeApproppriated().isGreaterThanZero()) {
-            int emisTobeChanged = 1;
-            for (LoanScheduleModelPeriod installment : (List<LoanScheduleModelPeriod>) periods) {
-                if (!installment.isEMIFixedSpecificToInstallment()) {
-                    emisTobeChanged++;
-                }
-            }
-            if (emisTobeChanged > 1) {
-                emisTobeChanged--;
-            }
-            Money interestTobeApproppriated = loanApplicationTerms.getInterestTobeApproppriated();
-            Money interestFraction = interestTobeApproppriated.dividedBy(emisTobeChanged, mc.getRoundingMode());
-            BigDecimal roundFraction = interestFraction.getAmount().remainder(BigDecimal.ONE);
-            interestFraction = interestFraction.minus(roundFraction);
-            for (LoanScheduleModelPeriod installment : (List<LoanScheduleModelPeriod>) periods) {
-                if (!installment.isEMIFixedSpecificToInstallment()) {
-                    installment.addInterestAmount(interestFraction);
-                    installment.setRescheduleInterestPortion(interestFraction.getAmount());
-                    interestTobeApproppriated = interestTobeApproppriated.minus(interestFraction);
-                }
-            }
-            LoanScheduleModelPeriod lastInstallment = ((List<LoanScheduleModelPeriod>) periods).get(periods.size() - 1);
-
-            if (interestTobeApproppriated.isGreaterThanZero()) {
-                lastInstallment.addInterestAmount(interestTobeApproppriated);
-                BigDecimal rescheduleInterestPortion = BigDecimal.ZERO;
-                if (lastInstallment.rescheduleInterestPortion() != null) {
-                    rescheduleInterestPortion = lastInstallment.rescheduleInterestPortion();
-                }
-                lastInstallment.setRescheduleInterestPortion(rescheduleInterestPortion.add(interestTobeApproppriated.getAmount()));
-            }
-            scheduleParams.addTotalRepaymentExpected(loanApplicationTerms.getInterestTobeApproppriated());
-            scheduleParams.addTotalCumulativeInterest(loanApplicationTerms.getInterestTobeApproppriated());
-            loanApplicationTerms.setInterestTobeApproppriated(Money.zero(currency));
-        }
-
        // determine fees and penalties for charges which depends on total
        // loan interest
        updatePeriodsWithCharges(currency, scheduleParams, periods, nonCompoundingCharges);
@@ -1054,6 +1017,7 @@ public abstract class AbstractLoanScheduleGenerator implements LoanScheduleGener
                modifiedScheduledDueDate = loanTermVariationsData.getDateValue();
                if (!loanTermVariationsData.isSpecificToInstallment()) {
                    scheduleParams.setActualRepaymentDate(modifiedScheduledDueDate);
+                    loanApplicationTerms.setNewScheduledDueDateStart(modifiedScheduledDueDate);
                }
                loanTermVariationsData.setProcessed(true);
            }
@@ -2397,23 +2361,11 @@ public abstract class AbstractLoanScheduleGenerator implements LoanScheduleGener
            periods.clear();
        }

-        BigDecimal rescheuleInterestPortionTobeRetained = BigDecimal.ZERO;
-        for (LoanRepaymentScheduleInstallment retainedInstallment : retainedInstallments) {
-            if (retainedInstallment.getRescheduleInterestPortion() != null) {
-                rescheuleInterestPortionTobeRetained = rescheuleInterestPortionTobeRetained
-                        .add(retainedInstallment.getRescheduleInterestPortion());
-            }
+        if (retainedInstallments.size() > 0
+                && retainedInstallments.get(retainedInstallments.size() - 1).getRescheduleInterestPortion() != null) {
+            loanApplicationTerms.setInterestTobeApproppriated(
+                    Money.of(loan.getCurrency(), retainedInstallments.get(retainedInstallments.size() - 1).getRescheduleInterestPortion()));
        }
-
-        BigDecimal rescheuleInterestPortionTotal = BigDecimal.ZERO;
-        for (LoanRepaymentScheduleInstallment inst : loan.getRepaymentScheduleInstallments()) {
-            if (inst.getRescheduleInterestPortion() != null) {
-                rescheuleInterestPortionTotal = rescheuleInterestPortionTotal.add(inst.getRescheduleInterestPortion());
-            }
-        }
-
-        BigDecimal rescheuleInterestPortionTobeAppropriated = rescheuleInterestPortionTotal.subtract(rescheuleInterestPortionTobeRetained);
-        loanApplicationTerms.setInterestTobeApproppriated(Money.of(loan.getCurrency(), rescheuleInterestPortionTobeAppropriated));
        LoanScheduleModel loanScheduleModel = generate(mc, loanApplicationTerms, loan.charges(), holidayDetailDTO, loanScheduleParams);

        for (LoanScheduleModelPeriod loanScheduleModelPeriod : loanScheduleModel.getPeriods()) {
@@ -2640,8 +2592,8 @@ public abstract class AbstractLoanScheduleGenerator implements LoanScheduleGener
            final HolidayDetailDTO holidayDetailDTO) {
        LocalDate nextScheduleDate = null;
        if (loanApplicationTerms.getRecalculationFrequencyType().isSameAsRepayment()) {
-            nextScheduleDate = this.scheduledDateGenerator.generateNextScheduleDateStartingFromDisburseDate(startDate, loanApplicationTerms,
-                    holidayDetailDTO);
+            nextScheduleDate = this.scheduledDateGenerator.generateNextScheduleDateStartingFromDisburseDateOrRescheduleDate(startDate,
+                    loanApplicationTerms, holidayDetailDTO);
        } else {
            CalendarInstance calendarInstance = loanApplicationTerms.getRestCalendarInstance();
            nextScheduleDate = CalendarUtils.getNextScheduleDate(calendarInstance.getCalendar(), startDate);
@@ -113,7 +113,11 @@ public class DecliningBalanceInterestLoanScheduleGenerator extends AbstractLoanS
                        compoundFee = compoundingMap.get(principal.getKey());
                        compoundingMap.put(principal.getKey(), interestToBeCompounded.plus(compoundFee));
                    }
-                    balanceForInterestCalculation = balanceForInterestCalculation.plus(principal.getValue()).plus(compoundFee);
+                    if (!loanApplicationTerms.isPrincipalCompoundingDisabledForOverdueLoans()) {
+                        balanceForInterestCalculation = balanceForInterestCalculation.plus(principal.getValue());
+                    }
+                    balanceForInterestCalculation = balanceForInterestCalculation.plus(compoundFee);
+
                    if (interestRates.containsKey(principal.getKey())) {
                        loanApplicationTerms.updateAnnualNominalInterestRate(interestRates.get(principal.getKey()));
                    }
@@ -128,42 +132,27 @@ public class DecliningBalanceInterestLoanScheduleGenerator extends AbstractLoanS
        interestForThisInstallment = interestForThisInstallment.plus(result.interest());
        cumulatingInterestDueToGrace = result.interestPaymentDueToGrace();

-        Money interestTobeApproppriated = loanApplicationTerms.getInterestTobeApproppriated() == null
-                ? Money.zero(interestForThisInstallment.getCurrency())
-                : loanApplicationTerms.getInterestTobeApproppriated();
-
-        if (loanApplicationTerms.getFixedEmiAmount() != null
-                && loanApplicationTerms.isInterestToBeAppropriatedEquallyWhenGreaterThanEMIEnabled() && interestForThisInstallment
-                        .isGreaterThan(Money.of(interestForThisInstallment.getCurrency(), loanApplicationTerms.getFixedEmiAmount()))) {
-            LocalDate actualPeriodEndDate = this.scheduledDateGenerator.generateNextRepaymentDate(interestStartDate, loanApplicationTerms,
-                    false);
-            PrincipalInterest tempInterest = loanApplicationTerms.calculateTotalInterestForPeriod(calculator,
-                    interestCalculationGraceOnRepaymentPeriodFraction, periodNumber, mc, cumulatingInterestDueToGrace,
-                    balanceForInterestCalculation, interestStartDate, actualPeriodEndDate);
-
-            Money fixedEmi = Money.of(interestForThisInstallment.getCurrency(), loanApplicationTerms.getFixedEmiAmount());
-
-            if (tempInterest.interest().isGreaterThan(fixedEmi)) {
-                loanApplicationTerms
-                        .setInterestTobeApproppriated(interestTobeApproppriated.plus(interestForThisInstallment.minus(fixedEmi)));
-                interestForThisInstallment = fixedEmi;
-            } else {
-                loanApplicationTerms.setInterestTobeApproppriated(
-                        interestTobeApproppriated.plus(interestForThisInstallment.minus(tempInterest.interest())));
-                interestForThisInstallment = tempInterest.interest();
-            }
+        if (loanApplicationTerms.isInterestToBeRecoveredFirstWhenGreaterThanEMIEnabled()
+                && loanApplicationTerms.isInterestTobeApproppriated()) {
+            interestForThisInstallment = interestForThisInstallment.add(loanApplicationTerms.getInterestTobeApproppriated());
+            loanApplicationTerms.setInterestTobeApproppriated(interestForThisInstallment.zero());
        }

-        cumulatingInterestDueToGrace = result.interestPaymentDueToGrace();
-
        Money interestForPeriod = interestForThisInstallment;
        if (interestForPeriod.isGreaterThanZero()) {
            interestForPeriod = interestForPeriod.minus(cumulatingInterestPaymentDueToGrace);
        } else {
            interestForPeriod = cumulatingInterestDueToGrace.minus(cumulatingInterestPaymentDueToGrace);
        }
+
        Money principalForThisInstallment = loanApplicationTerms.calculateTotalPrincipalForPeriod(calculator, outstandingBalance,
                periodNumber, mc, interestForPeriod);
+        if (loanApplicationTerms.isInterestToBeRecoveredFirstWhenGreaterThanEMIEnabled() && principalForThisInstallment.isLessThanZero()
+                && !loanApplicationTerms.isLastRepaymentPeriod(periodNumber)) {
+            loanApplicationTerms.setInterestTobeApproppriated(principalForThisInstallment.abs());
+            interestForThisInstallment = interestForThisInstallment.minus(loanApplicationTerms.getInterestTobeApproppriated());
+            principalForThisInstallment = principalForThisInstallment.zero();
+        }

        // update cumulative fields for principal & interest
        final Money interestBroughtFowardDueToGrace = cumulatingInterestDueToGrace;
@@ -173,6 +162,9 @@ public class DecliningBalanceInterestLoanScheduleGenerator extends AbstractLoanS
        principalForThisInstallment = loanApplicationTerms.adjustPrincipalIfLastRepaymentPeriod(principalForThisInstallment,
                totalCumulativePrincipalToDate, periodNumber);

-        return new PrincipalInterest(principalForThisInstallment, interestForThisInstallment, interestBroughtFowardDueToGrace);
+        PrincipalInterest principalInterest = new PrincipalInterest(principalForThisInstallment, interestForThisInstallment,
+                interestBroughtFowardDueToGrace);
+        principalInterest.setRescheduleInterestPortion(loanApplicationTerms.getInterestTobeApproppriated());
+        return principalInterest;
    }
 }
@@ -327,4 +327,22 @@ public class DefaultScheduledDateGenerator implements ScheduledDateGenerator {
        generatedDate = adjustRepaymentDate(generatedDate, loanApplicationTerms, holidayDetailDTO).getChangedScheduleDate();
        return generatedDate;
    }
+
+    @Override
+    public LocalDate generateNextScheduleDateStartingFromDisburseDateOrRescheduleDate(LocalDate lastRepaymentDate,
+            LoanApplicationTerms loanApplicationTerms, final HolidayDetailDTO holidayDetailDTO) {
+
+        LocalDate generatedDate = loanApplicationTerms.getExpectedDisbursementDate();
+        boolean isFirstRepayment = true;
+        if (loanApplicationTerms.getNewScheduledDueDateStart() != null) {
+            generatedDate = loanApplicationTerms.getNewScheduledDueDateStart();
+            isFirstRepayment = false;
+        }
+        while (!generatedDate.isAfter(lastRepaymentDate)) {
+            generatedDate = generateNextRepaymentDate(generatedDate, loanApplicationTerms, isFirstRepayment);
+            isFirstRepayment = false;
+        }
+        generatedDate = adjustRepaymentDate(generatedDate, loanApplicationTerms, holidayDetailDTO).getChangedScheduleDate();
+        return generatedDate;
+    }
 }
@@ -188,7 +188,9 @@ public final class LoanApplicationTerms {

    private final boolean isFirstRepaymentDateAllowedOnHoliday;

-    private final boolean isInterestToBeAppropriatedEquallyWhenGreaterThanEMI;
+    private final boolean isInterestToBeRecoveredFirstWhenGreaterThanEMI;
+
+    private boolean isPrincipalCompoundingDisabledForOverdueLoans;

    private final HolidayDetailDTO holidayDetailDTO;

@@ -209,6 +211,8 @@ public final class LoanApplicationTerms {
    private Money interestTobeApproppriated;
    private final BigDecimal fixedPrincipalPercentagePerInstallment;

+    private LocalDate newScheduledDueDateStart;
+
    public static LoanApplicationTerms assembleFrom(final ApplicationCurrency currency, final Integer loanTermFrequency,
            final PeriodFrequencyType loanTermPeriodFrequencyType, final Integer numberOfRepayments, final Integer repaymentEvery,
            final PeriodFrequencyType repaymentPeriodFrequencyType, Integer nthDay, DayOfWeekType weekDayType,
@@ -230,7 +234,8 @@ public final class LoanApplicationTerms {
            BigDecimal approvedAmount, List<LoanTermVariationsData> loanTermVariations,
            Boolean isInterestChargedFromDateSameAsDisbursalDateEnabled, final Integer numberOfDays,
            boolean isSkipRepaymentOnFirstDayOfMonth, final HolidayDetailDTO holidayDetailDTO, final boolean allowCompoundingOnEod,
-            final boolean isEqualAmortization, final BigDecimal fixedPrincipalPercentagePerInstallment) {
+            final boolean isEqualAmortization, final boolean isInterestToBeRecoveredFirstWhenGreaterThanEMI,
+            final BigDecimal fixedPrincipalPercentagePerInstallment, final boolean isPrincipalCompoundingDisabledForOverdueLoans) {

        final LoanRescheduleStrategyMethod rescheduleStrategyMethod = null;
        final CalendarHistoryDataWrapper calendarHistoryDataWrapper = null;
@@ -245,8 +250,9 @@ public final class LoanApplicationTerms {
                recalculationFrequencyType, compoundingCalendarInstance, compoundingFrequencyType, principalThresholdForLastInstalment,
                installmentAmountInMultiplesOf, preClosureInterestCalculationStrategy, loanCalendar, approvedAmount, loanTermVariations,
                calendarHistoryDataWrapper, isInterestChargedFromDateSameAsDisbursalDateEnabled, numberOfDays,
-                isSkipRepaymentOnFirstDayOfMonth, holidayDetailDTO, allowCompoundingOnEod, isEqualAmortization, false, false,
-                fixedPrincipalPercentagePerInstallment);
+                isSkipRepaymentOnFirstDayOfMonth, holidayDetailDTO, allowCompoundingOnEod, isEqualAmortization, false,
+                isInterestToBeRecoveredFirstWhenGreaterThanEMI, fixedPrincipalPercentagePerInstallment,
+                isPrincipalCompoundingDisabledForOverdueLoans);

    }

@@ -273,7 +279,7 @@ public final class LoanApplicationTerms {
                compoundingMethod, compoundingCalendarInstance, compoundingFrequencyType, loanPreClosureInterestCalculationStrategy,
                rescheduleStrategyMethod, loanCalendar, approvedAmount, annualNominalInterestRate, loanTermVariations,
                calendarHistoryDataWrapper, numberOfDays, isSkipRepaymentOnFirstDayOfMonth, holidayDetailDTO, allowCompoundingOnEod, false,
-                false, null);
+                false, null, false);
    }

    public static LoanApplicationTerms assembleFrom(final ApplicationCurrency applicationCurrency, final Integer loanTermFrequency,
@@ -291,8 +297,8 @@ public final class LoanApplicationTerms {
            BigDecimal annualNominalInterestRate, final List<LoanTermVariationsData> loanTermVariations,
            final CalendarHistoryDataWrapper calendarHistoryDataWrapper, final Integer numberOfDays,
            final boolean isSkipRepaymentOnFirstDayOfMonth, final HolidayDetailDTO holidayDetailDTO, final boolean allowCompoundingOnEod,
-            final boolean isFirstRepaymentDateAllowedOnHoliday, final boolean isInterestToBeAppropriatedEquallyWhenGreaterThanEMI,
-            final BigDecimal fixedPrincipalPercentagePerInstallment) {
+            final boolean isFirstRepaymentDateAllowedOnHoliday, final boolean isInterestToBeRecoveredFirstWhenGreaterThanEMI,
+            final BigDecimal fixedPrincipalPercentagePerInstallment, final boolean isPrincipalCompoundingDisabledForOverdueLoans) {

        final Integer numberOfRepayments = loanProductRelatedDetail.getNumberOfRepayments();
        final Integer repaymentEvery = loanProductRelatedDetail.getRepayEvery();
@@ -331,7 +337,8 @@ public final class LoanApplicationTerms {
                loanPreClosureInterestCalculationStrategy, loanCalendar, approvedAmount, loanTermVariations, calendarHistoryDataWrapper,
                isInterestChargedFromDateSameAsDisbursalDateEnabled, numberOfDays, isSkipRepaymentOnFirstDayOfMonth, holidayDetailDTO,
                allowCompoundingOnEod, isEqualAmortization, isFirstRepaymentDateAllowedOnHoliday,
-                isInterestToBeAppropriatedEquallyWhenGreaterThanEMI, fixedPrincipalPercentagePerInstallment);
+                isInterestToBeRecoveredFirstWhenGreaterThanEMI, fixedPrincipalPercentagePerInstallment,
+                isPrincipalCompoundingDisabledForOverdueLoans);
    }

    public static LoanApplicationTerms assembleFrom(final ApplicationCurrency applicationCurrency, final Integer loanTermFrequency,
@@ -390,7 +397,7 @@ public final class LoanApplicationTerms {
                recalculationFrequencyType, compoundingCalendarInstance, compoundingFrequencyType, principalThresholdForLastInstalment,
                installmentAmountInMultiplesOf, loanPreClosureInterestCalculationStrategy, loanCalendar, approvedAmount, loanTermVariations,
                calendarHistoryDataWrapper, isInterestChargedFromDateSameAsDisbursalDateEnabled, numberOfDays,
-                isSkipRepaymentOnFirstDayOfMonth, holidayDetailDTO, allowCompoundingOnEod, isEqualAmortization, false, false, null);
+                isSkipRepaymentOnFirstDayOfMonth, holidayDetailDTO, allowCompoundingOnEod, isEqualAmortization, false, false, null, false);

    }

@@ -417,8 +424,8 @@ public final class LoanApplicationTerms {
                applicationTerms.calendarHistoryDataWrapper, applicationTerms.isInterestChargedFromDateSameAsDisbursalDateEnabled,
                applicationTerms.numberOfDays, applicationTerms.isSkipRepaymentOnFirstDayOfMonth, applicationTerms.holidayDetailDTO,
                applicationTerms.allowCompoundingOnEod, applicationTerms.isEqualAmortization,
-                applicationTerms.isFirstRepaymentDateAllowedOnHoliday, applicationTerms.isInterestToBeAppropriatedEquallyWhenGreaterThanEMI,
-                applicationTerms.fixedPrincipalPercentagePerInstallment);
+                applicationTerms.isFirstRepaymentDateAllowedOnHoliday, applicationTerms.isInterestToBeRecoveredFirstWhenGreaterThanEMI,
+                applicationTerms.fixedPrincipalPercentagePerInstallment, applicationTerms.isPrincipalCompoundingDisabledForOverdueLoans);
    }

    private LoanApplicationTerms(final ApplicationCurrency currency, final Integer loanTermFrequency,
@@ -443,7 +450,8 @@ public final class LoanApplicationTerms {
            final CalendarHistoryDataWrapper calendarHistoryDataWrapper, Boolean isInterestChargedFromDateSameAsDisbursalDateEnabled,
            final Integer numberOfDays, final boolean isSkipRepaymentOnFirstDayOfMonth, final HolidayDetailDTO holidayDetailDTO,
            final boolean allowCompoundingOnEod, final boolean isEqualAmortization, final boolean isFirstRepaymentDateAllowedOnHoliday,
-            final boolean isInterestToBeAppropriatedEquallyWhenGreaterThanEMI, final BigDecimal fixedPrincipalPercentagePerInstallment) {
+            final boolean isInterestToBeRecoveredFirstWhenGreaterThanEMI, final BigDecimal fixedPrincipalPercentagePerInstallment,
+            final boolean isPrincipalCompoundingDisabledForOverdueLoans) {

        this.currency = currency;
        this.loanTermFrequency = loanTermFrequency;
@@ -517,8 +525,9 @@ public final class LoanApplicationTerms {
        this.totalPrincipalAccounted = principal.zero();
        this.isEqualAmortization = isEqualAmortization;
        this.isFirstRepaymentDateAllowedOnHoliday = isFirstRepaymentDateAllowedOnHoliday;
-        this.isInterestToBeAppropriatedEquallyWhenGreaterThanEMI = isInterestToBeAppropriatedEquallyWhenGreaterThanEMI;
+        this.isInterestToBeRecoveredFirstWhenGreaterThanEMI = isInterestToBeRecoveredFirstWhenGreaterThanEMI;
        this.fixedPrincipalPercentagePerInstallment = fixedPrincipalPercentagePerInstallment;
+        this.isPrincipalCompoundingDisabledForOverdueLoans = isPrincipalCompoundingDisabledForOverdueLoans;
    }

    public Money adjustPrincipalIfLastRepaymentPeriod(final Money principalForPeriod, final Money totalCumulativePrincipalToDate,
@@ -743,6 +752,10 @@ public final class LoanApplicationTerms {
        return periodNumber == numberOfRepayments;
    }

+    public boolean isLastRepaymentPeriod(final int periodNumber) {
+        return periodNumber == this.actualNumberOfRepayments;
+    }
+
    /**
     * general method to calculate totalInterestDue discounting any grace settings
     */
@@ -1248,7 +1261,7 @@ public final class LoanApplicationTerms {
        Money interestDue = Money.zero(outstandingBalance.getCurrency());

        final BigDecimal periodicInterestRate = periodicInterestRate(calculator, mc, this.daysInMonthType, this.daysInYearType,
-                periodStartDate, periodEndDate);
+                periodStartDate, periodEndDate);// 0.021232877 ob:14911.64
        interestDue = outstandingBalance.multiplyRetainScale(periodicInterestRate, mc.getRoundingMode());

        return interestDue;
@@ -1334,7 +1347,6 @@ public final class LoanApplicationTerms {

    private Money calculatePrincipalDueForInstallment(final int periodNumber, final Money totalDuePerInstallment,
            final Money periodInterest) {
-
        Money principal = totalDuePerInstallment.minus(periodInterest);
        if (isPrincipalGraceApplicableForThisPeriod(periodNumber)) {
            principal = principal.zero();
@@ -1795,15 +1807,30 @@ public final class LoanApplicationTerms {
    }

    public Money getInterestTobeApproppriated() {
-        return interestTobeApproppriated;
+        return interestTobeApproppriated == null ? this.principal.zero() : interestTobeApproppriated;
    }

    public void setInterestTobeApproppriated(Money interestTobeApproppriated) {
        this.interestTobeApproppriated = interestTobeApproppriated;
    }

-    public boolean isInterestToBeAppropriatedEquallyWhenGreaterThanEMIEnabled() {
-        return isInterestToBeAppropriatedEquallyWhenGreaterThanEMI;
+    public Boolean isInterestTobeApproppriated() {
+        return interestTobeApproppriated != null && interestTobeApproppriated.isGreaterThanZero();
    }

+    public boolean isInterestToBeRecoveredFirstWhenGreaterThanEMIEnabled() {
+        return isInterestToBeRecoveredFirstWhenGreaterThanEMI;
+    }
+
+    public boolean isPrincipalCompoundingDisabledForOverdueLoans() {
+        return isPrincipalCompoundingDisabledForOverdueLoans;
+    }
+
+    public LocalDate getNewScheduledDueDateStart() {
+        return newScheduledDueDateStart;
+    }
+
+    public void setNewScheduledDueDateStart(LocalDate newScheduledDueDateStart) {
+        this.newScheduledDueDateStart = newScheduledDueDateStart;
+    }
 }
@@ -25,6 +25,7 @@ public class PrincipalInterest {
    private final Money principal;
    private final Money interest;
    private final Money interestPaymentDueToGrace;
+    private Money rescheduleInterestPortion;

    public PrincipalInterest(final Money principal, final Money interest, final Money interestPaymentDueToGrace) {
        this.principal = principal;
@@ -43,4 +44,12 @@ public class PrincipalInterest {
    public Money interestPaymentDueToGrace() {
        return this.interestPaymentDueToGrace;
    }
+
+    public Money getRescheduleInterestPortion() {
+        return rescheduleInterestPortion;
+    }
+
+    public void setRescheduleInterestPortion(Money rescheduleInterestPortion) {
+        this.rescheduleInterestPortion = rescheduleInterestPortion;
+    }
 }
@@ -43,4 +43,7 @@ public interface ScheduledDateGenerator {

    LocalDate generateNextScheduleDateStartingFromDisburseDate(LocalDate lastRepaymentDate, LoanApplicationTerms loanApplicationTerms,
            HolidayDetailDTO holidayDetailDTO);
+
+    LocalDate generateNextScheduleDateStartingFromDisburseDateOrRescheduleDate(LocalDate lastRepaymentDate,
+            LoanApplicationTerms loanApplicationTerms, HolidayDetailDTO holidayDetailDTO);
 }
@@ -448,7 +448,10 @@ public class LoanScheduleAssembler {
                Date.from(expectedDisbursementDate.atStartOfDay(ZoneId.systemDefault()).toInstant()), HolidayStatusType.ACTIVE.getValue());
        final WorkingDays workingDays = this.workingDaysRepository.findOne();
        HolidayDetailDTO detailDTO = new HolidayDetailDTO(isHolidayEnabled, holidays, workingDays);
-
+        final boolean isInterestToBeRecoveredFirstWhenGreaterThanEMI = this.configurationDomainService
+                .isInterestToBeRecoveredFirstWhenGreaterThanEMI();
+        final boolean isPrincipalCompoundingDisabledForOverdueLoans = this.configurationDomainService
+                .isPrincipalCompoundingDisabledForOverdueLoans();
        return LoanApplicationTerms.assembleFrom(applicationCurrency, loanTermFrequency, loanTermPeriodFrequencyType, numberOfRepayments,
                repaymentEvery, repaymentPeriodFrequencyType, nthDay, weekDayType, amortizationMethod, interestMethod,
                interestRatePerPeriod, interestRatePeriodFrequencyType, annualNominalInterestRate, interestCalculationPeriodMethod,
@@ -460,7 +463,8 @@ public class LoanScheduleAssembler {
                compoundingMethod, compoundingCalendarInstance, compoundingFrequencyType, principalThresholdForLastInstalment,
                installmentAmountInMultiplesOf, loanProduct.preCloseInterestCalculationStrategy(), calendar, BigDecimal.ZERO,
                loanTermVariations, isInterestChargedFromDateSameAsDisbursalDateEnabled, numberOfDays, isSkipMeetingOnFirstDay, detailDTO,
-                allowCompoundingOnEod, isEqualAmortization, fixedPrincipalPercentagePerInstallment);
+                allowCompoundingOnEod, isEqualAmortization, isInterestToBeRecoveredFirstWhenGreaterThanEMI,
+                fixedPrincipalPercentagePerInstallment, isPrincipalCompoundingDisabledForOverdueLoans);
    }

    private CalendarInstance createCalendarForSameAsRepayment(final Integer repaymentEvery,
@@ -144,15 +144,17 @@ public class LoanUtilService {
        boolean isFirstRepaymentDateAllowedOnHoliday = this.configurationDomainService
                .isFirstRepaymentDateAfterRescheduleAllowedOnHoliday();

-        boolean isInterestToBeAppropriatedEquallyWhenGreaterThanEMI = this.configurationDomainService
-                .isInterestToBeAppropriatedEquallyWhenGreaterThanEMI();
+        boolean isInterestToBeRecoveredFirstWhenGreaterThanEMI = this.configurationDomainService
+                .isInterestToBeRecoveredFirstWhenGreaterThanEMI();
+        boolean isPrincipalCompoundingDisabledForOverdueLoans = this.configurationDomainService
+                .isPrincipalCompoundingDisabledForOverdueLoans();

        ScheduleGeneratorDTO scheduleGeneratorDTO = new ScheduleGeneratorDTO(loanScheduleFactory, applicationCurrency,
                calculatedRepaymentsStartingFromDate, holidayDetails, restCalendarInstance, compoundingCalendarInstance, recalculateFrom,
                overdurPenaltyWaitPeriod, floatingRateDTO, calendar, calendarHistoryDataWrapper,
                isInterestChargedFromDateAsDisbursementDateEnabled, numberOfDays, isSkipRepaymentOnFirstMonth,
                isChangeEmiIfRepaymentDateSameAsDisbursementDateEnabled, isFirstRepaymentDateAllowedOnHoliday,
-                isInterestToBeAppropriatedEquallyWhenGreaterThanEMI);
+                isInterestToBeRecoveredFirstWhenGreaterThanEMI, isPrincipalCompoundingDisabledForOverdueLoans);

        return scheduleGeneratorDTO;
    }
@@ -0,0 +1,29 @@
+--
+-- Licensed to the Apache Software Foundation (ASF) under one
+-- or more contributor license agreements. See the NOTICE file
+-- distributed with this work for additional information
+-- regarding copyright ownership. The ASF licenses this file
+-- to you under the Apache License, Version 2.0 (the
+-- "License"); you may not use this file except in compliance
+-- with the License. You may obtain a copy of the License at
+--
+-- http://www.apache.org/licenses/LICENSE-2.0
+--
+-- Unless required by applicable law or agreed to in writing,
+-- software distributed under the License is distributed on an
+-- "AS IS" BASIS, WITHOUT WARRANTIES OR CONDITIONS OF ANY
+-- KIND, either express or implied. See the License for the
+-- specific language governing permissions and limitations
+-- under the License.
+--
+
+delete from c_configuration where name = 'is-interest-to-be-appropriated-equally-when-greater-than-emi';
+
+INSERT INTO `c_configuration` (`name`, `value`, `date_value`, `enabled`, `is_trap_door`, `description`)
+VALUES
+    ('is-interest-to-be-recovered-first-when-greater-than-emi', 0, NULL, 0, 0, 'If enabled, when interest amount is greater than EMI, the additional interest is recovered first before princupal');
+
+
+INSERT INTO `c_configuration` (`name`, `value`, `date_value`, `enabled`, `is_trap_door`, `description`)
+VALUES
+    ('is-principal-compounding-disabled-for-overdue-loans', 0, NULL, 0, 0, 'If enabled, it donot consider principal of an upaid installment for calculating interest of next installment. this is for testing back-dated loan sshedule');