FINERACT-2232: Progressive loan income capitalization config

2025-04-15 19:45:25 +02:00
parent 6a65bc6592
commit 7df7be2b16
22 changed files with 601 additions and 32 deletions
@@ -132,6 +132,8 @@ import org.apache.fineract.portfolio.loanaccount.data.LoanTermVariationsData;
 import org.apache.fineract.portfolio.loanaccount.data.LoanTransactionData;
 import org.apache.fineract.portfolio.loanaccount.data.PaidInAdvanceData;
 import org.apache.fineract.portfolio.loanaccount.data.RepaymentScheduleRelatedLoanData;
+import org.apache.fineract.portfolio.loanaccount.domain.LoanCapitalizedIncomeCalculationType;
+import org.apache.fineract.portfolio.loanaccount.domain.LoanCapitalizedIncomeStrategy;
 import org.apache.fineract.portfolio.loanaccount.domain.LoanStatus;
 import org.apache.fineract.portfolio.loanaccount.domain.LoanSummaryBalancesRepository;
 import org.apache.fineract.portfolio.loanaccount.domain.LoanTermVariationType;
@@ -1135,7 +1137,9 @@ public class LoansApiResource {
                loanCollateralOptions, calendarOptions, notes, accountLinkingOptions, linkedAccount, disbursementData, emiAmountVariations,
                overdueCharges, paidInAdvanceTemplate, interestRatesPeriods, clientActiveLoanOptions, rates, isRatesEnabled, collectionData,
                LoanScheduleType.getValuesAsEnumOptionDataList(), LoanScheduleProcessingType.getValuesAsEnumOptionDataList(),
-                loanTermVariations, DaysInYearCustomStrategyType.getValuesAsStringEnumOptionDataList());
+                loanTermVariations, DaysInYearCustomStrategyType.getValuesAsStringEnumOptionDataList(),
+                LoanCapitalizedIncomeCalculationType.getValuesAsStringEnumOptionDataList(),
+                LoanCapitalizedIncomeStrategy.getValuesAsStringEnumOptionDataList());

        final ApiRequestJsonSerializationSettings settings = this.apiRequestParameterHelper.process(uriInfo.getQueryParameters(),
                mandatoryResponseParameters);
@@ -1206,6 +1206,12 @@ final class LoansApiResourceSwagger {
        public StringEnumOptionData chargeOffBehaviour;
        @Schema(example = "false")
        public Boolean interestRecognitionOnDisbursementDate;
+        @Schema(example = "false")
+        public Boolean enableIncomeCapitalization;
+        @Schema(example = "FLAT")
+        public StringEnumOptionData capitalizedIncomeCalculationType;
+        @Schema(example = "EQUAL_AMORTIZATION")
+        public StringEnumOptionData capitalizedIncomeStrategy;
    }

    @Schema(description = "GetLoansResponse")
@@ -1309,6 +1315,12 @@ final class LoansApiResourceSwagger {
        public BigDecimal fixedEmiAmount;
        @Schema(example = "false")
        public Boolean interestRecognitionOnDisbursementDate;
+        @Schema(example = "false")
+        public Boolean enableIncomeCapitalization;
+        @Schema(example = "FLAT", allowableValues = "FLAT")
+        public String capitalizedIncomeCalculationType;
+        @Schema(example = "EQUAL_AMORTIZATION", allowableValues = "EQUAL_AMORTIZATION")
+        public String capitalizedIncomeStrategy;

        public List<PostLoansRequestChargeData> charges;

@@ -172,6 +172,8 @@ public class LoanAccountData {
    private List<EnumOptionData> loanScheduleTypeOptions;
    private List<EnumOptionData> loanScheduleProcessingTypeOptions;
    private List<StringEnumOptionData> daysInYearCustomStrategyOptions;
+    private List<StringEnumOptionData> capitalizedIncomeCalculationTypeOptions;
+    private List<StringEnumOptionData> capitalizedIncomeStrategyOptions;

    @Transient
    private BigDecimal feeChargesAtDisbursementCharged;
@@ -274,6 +276,9 @@ public class LoanAccountData {
    private EnumOptionData loanScheduleProcessingType;

    private StringEnumOptionData chargeOffBehaviour;
+    private Boolean enableIncomeCapitalization;
+    private StringEnumOptionData capitalizedIncomeCalculationType;
+    private StringEnumOptionData capitalizedIncomeStrategy;

    public static LoanAccountData importInstanceIndividual(EnumOptionData loanTypeEnumOption, Long clientId, Long productId,
            Long loanOfficerId, LocalDate submittedOnDate, Long fundId, BigDecimal principal, Integer numberOfRepayments,
@@ -464,7 +469,9 @@ public class LoanAccountData {
            final BigDecimal disbursedAmountPercentageForDownPayment, final boolean enableAutoRepaymentForDownPayment,
            final boolean enableInstallmentLevelDelinquency, final EnumOptionData loanScheduleType,
            final EnumOptionData loanScheduleProcessingType, final Integer fixedLength, final StringEnumOptionData chargeOffBehaviour,
-            final boolean isInterestRecognitionOnDisbursementDate, final StringEnumOptionData daysInYearCustomStrategy) {
+            final boolean isInterestRecognitionOnDisbursementDate, final StringEnumOptionData daysInYearCustomStrategy,
+            final boolean enableIncomeCapitalization, final StringEnumOptionData capitalizedIncomeCalculationType,
+            final StringEnumOptionData capitalizedIncomeStrategy) {

        final CollectionData delinquent = CollectionData.template();

@@ -510,7 +517,9 @@ public class LoanAccountData {
                .setEnableInstallmentLevelDelinquency(enableInstallmentLevelDelinquency).setLoanScheduleType(loanScheduleType)
                .setLoanScheduleProcessingType(loanScheduleProcessingType).setFixedLength(fixedLength)
                .setChargeOffBehaviour(chargeOffBehaviour).setInterestRecognitionOnDisbursementDate(isInterestRecognitionOnDisbursementDate)
-                .setDaysInYearCustomStrategy(daysInYearCustomStrategy);
+                .setDaysInYearCustomStrategy(daysInYearCustomStrategy).setEnableIncomeCapitalization(enableIncomeCapitalization)
+                .setCapitalizedIncomeCalculationType(capitalizedIncomeCalculationType)
+                .setCapitalizedIncomeStrategy(capitalizedIncomeStrategy);
    }

    /*
@@ -536,7 +545,9 @@ public class LoanAccountData {
            final Collection<LoanAccountSummaryData> clientActiveLoanOptions, final List<RateData> rates, final Boolean isRatesEnabled,
            final CollectionData delinquent, final List<EnumOptionData> loanScheduleTypeOptions,
            final List<EnumOptionData> loanScheduleProcessingTypeOptions, final List<LoanTermVariationsData> loanTermVariations,
-            final List<StringEnumOptionData> daysInYearCustomStrategyOptions) {
+            final List<StringEnumOptionData> daysInYearCustomStrategyOptions,
+            final List<StringEnumOptionData> capitalizedIncomeCalculationTypeOptions,
+            final List<StringEnumOptionData> capitalizedIncomeStrategyOptions) {

        // TODO: why are these variables 'calendarData', 'chargeTemplate' never used (see original private constructor)

@@ -557,7 +568,9 @@ public class LoanAccountData {
                .setClientActiveLoanOptions(clientActiveLoanOptions).setRates(rates).setIsRatesEnabled(isRatesEnabled)
                .setDelinquent(delinquent).setLoanScheduleTypeOptions(loanScheduleTypeOptions)
                .setLoanScheduleProcessingTypeOptions(loanScheduleProcessingTypeOptions).setLoanTermVariations(loanTermVariations)
-                .setDaysInYearCustomStrategyOptions(daysInYearCustomStrategyOptions);
+                .setDaysInYearCustomStrategyOptions(daysInYearCustomStrategyOptions)
+                .setCapitalizedIncomeCalculationTypeOptions(capitalizedIncomeCalculationTypeOptions)
+                .setCapitalizedIncomeStrategyOptions(capitalizedIncomeStrategyOptions);
    }

    public LoanAccountData associationsAndTemplate(final Collection<LoanProductData> productOptions,
@@ -544,7 +544,10 @@ public class LoanScheduleAssembler {
                loanProduct.getLoanProductRelatedDetail().isEnableAccrualActivityPosting(),
                loanProduct.getLoanProductRelatedDetail().getSupportedInterestRefundTypes(),
                loanProduct.getLoanProductRelatedDetail().getChargeOffBehaviour(), interestRecognitionOnDisbursementDate,
-                loanProduct.getLoanProductRelatedDetail().getDaysInYearCustomStrategy());
+                loanProduct.getLoanProductRelatedDetail().getDaysInYearCustomStrategy(),
+                loanProduct.getLoanProductRelatedDetail().isEnableIncomeCapitalization(),
+                loanProduct.getLoanProductRelatedDetail().getCapitalizedIncomeCalculationType(),
+                loanProduct.getLoanProductRelatedDetail().getCapitalizedIncomeStrategy());
    }

    private CalendarInstance createCalendarForSameAsRepayment(final Integer repaymentEvery,
@@ -40,6 +40,8 @@ import org.apache.fineract.portfolio.common.domain.DaysInYearType;
 import org.apache.fineract.portfolio.common.domain.PeriodFrequencyType;
 import org.apache.fineract.portfolio.floatingrates.domain.FloatingRate;
 import org.apache.fineract.portfolio.fund.domain.Fund;
+import org.apache.fineract.portfolio.loanaccount.domain.LoanCapitalizedIncomeCalculationType;
+import org.apache.fineract.portfolio.loanaccount.domain.LoanCapitalizedIncomeStrategy;
 import org.apache.fineract.portfolio.loanaccount.domain.LoanChargeOffBehaviour;
 import org.apache.fineract.portfolio.loanaccount.loanschedule.domain.AprCalculator;
 import org.apache.fineract.portfolio.loanaccount.loanschedule.domain.LoanScheduleProcessingType;
@@ -305,6 +307,13 @@ public class LoanProductAssembler {
            chargeOffBehaviour = LoanChargeOffBehaviour.REGULAR;
        }

+        final boolean enableIncomeCapitalization = command
+                .booleanPrimitiveValueOfParameterNamed(LoanProductConstants.ENABLE_INCOME_CAPITALIZATION_PARAM_NAME);
+        final LoanCapitalizedIncomeCalculationType capitalizedIncomeCalculationType = command.enumValueOfParameterNamed(
+                LoanProductConstants.CAPITALIZED_INCOME_CALCULATION_TYPE_PARAM_NAME, LoanCapitalizedIncomeCalculationType.class);
+        final LoanCapitalizedIncomeStrategy capitalizedIncomeStrategy = command.enumValueOfParameterNamed(
+                LoanProductConstants.CAPITALIZED_INCOME_STRATEGY_PARAM_NAME, LoanCapitalizedIncomeStrategy.class);
+
        return new LoanProduct(fund, loanTransactionProcessingStrategy, loanProductPaymentAllocationRules, loanProductCreditAllocationRules,
                name, shortName, description, currency, principal, minPrincipal, maxPrincipal, interestRatePerPeriod,
                minInterestRatePerPeriod, maxInterestRatePerPeriod, interestFrequencyType, annualInterestRate, interestMethod,
@@ -325,7 +334,7 @@ public class LoanProductAssembler {
                overDueDaysForRepaymentEvent, enableDownPayment, disbursedAmountPercentageDownPayment, enableAutoRepaymentForDownPayment,
                repaymentStartDateType, enableInstallmentLevelDelinquency, loanScheduleType, loanScheduleProcessingType, fixedLength,
                enableAccrualActivityPosting, supportedInterestRefundTypes, chargeOffBehaviour, interestRecognitionOnDisbursementDate,
-                daysInYearCustomStrategy);
+                daysInYearCustomStrategy, enableIncomeCapitalization, capitalizedIncomeCalculationType, capitalizedIncomeStrategy);

    }

@@ -26,6 +26,8 @@ import org.apache.fineract.infrastructure.core.api.JsonCommand;
 import org.apache.fineract.organisation.monetary.domain.MonetaryCurrency;
 import org.apache.fineract.portfolio.common.domain.DaysInYearCustomStrategyType;
 import org.apache.fineract.portfolio.common.domain.PeriodFrequencyType;
+import org.apache.fineract.portfolio.loanaccount.domain.LoanCapitalizedIncomeCalculationType;
+import org.apache.fineract.portfolio.loanaccount.domain.LoanCapitalizedIncomeStrategy;
 import org.apache.fineract.portfolio.loanaccount.loanschedule.domain.AprCalculator;
 import org.apache.fineract.portfolio.loanaccount.loanschedule.domain.LoanScheduleProcessingType;
 import org.apache.fineract.portfolio.loanaccount.loanschedule.domain.LoanScheduleType;
@@ -296,6 +298,28 @@ public class LoanProductRelatedDetailUpdateUtil {
            loanRepaymentScheduleDetail.updateInterestRecognitionOnDisbursementDate(newValue);
        }

+        if (command.isChangeInBooleanParameterNamed(LoanProductConstants.ENABLE_INCOME_CAPITALIZATION_PARAM_NAME,
+                loanRepaymentScheduleDetail.isEnableIncomeCapitalization())) {
+            final boolean newValue = command
+                    .booleanPrimitiveValueOfParameterNamed(LoanProductConstants.ENABLE_INCOME_CAPITALIZATION_PARAM_NAME);
+            actualChanges.put(LoanProductConstants.ENABLE_INCOME_CAPITALIZATION_PARAM_NAME, newValue);
+            loanRepaymentScheduleDetail.setEnableIncomeCapitalization(newValue);
+        }
+
+        if (command.parameterExists(LoanProductConstants.CAPITALIZED_INCOME_CALCULATION_TYPE_PARAM_NAME)) {
+            final LoanCapitalizedIncomeCalculationType newValue = command.enumValueOfParameterNamed(
+                    LoanProductConstants.CAPITALIZED_INCOME_CALCULATION_TYPE_PARAM_NAME, LoanCapitalizedIncomeCalculationType.class);
+            actualChanges.put(LoanProductConstants.CAPITALIZED_INCOME_CALCULATION_TYPE_PARAM_NAME, newValue);
+            loanRepaymentScheduleDetail.setCapitalizedIncomeCalculationType(newValue);
+        }
+
+        if (command.parameterExists(LoanProductConstants.CAPITALIZED_INCOME_STRATEGY_PARAM_NAME)) {
+            final LoanCapitalizedIncomeStrategy newValue = command.enumValueOfParameterNamed(
+                    LoanProductConstants.CAPITALIZED_INCOME_STRATEGY_PARAM_NAME, LoanCapitalizedIncomeStrategy.class);
+            actualChanges.put(LoanProductConstants.CAPITALIZED_INCOME_STRATEGY_PARAM_NAME, newValue);
+            loanRepaymentScheduleDetail.setCapitalizedIncomeStrategy(newValue);
+        }
+
        return actualChanges;
    }

@@ -106,6 +106,8 @@ import org.apache.fineract.portfolio.loanaccount.data.PaidInAdvanceData;
 import org.apache.fineract.portfolio.loanaccount.data.RepaymentScheduleRelatedLoanData;
 import org.apache.fineract.portfolio.loanaccount.data.ScheduleGeneratorDTO;
 import org.apache.fineract.portfolio.loanaccount.domain.Loan;
+import org.apache.fineract.portfolio.loanaccount.domain.LoanCapitalizedIncomeCalculationType;
+import org.apache.fineract.portfolio.loanaccount.domain.LoanCapitalizedIncomeStrategy;
 import org.apache.fineract.portfolio.loanaccount.domain.LoanChargeOffBehaviour;
 import org.apache.fineract.portfolio.loanaccount.domain.LoanRepaymentScheduleInstallment;
 import org.apache.fineract.portfolio.loanaccount.domain.LoanRepaymentScheduleTransactionProcessorFactory;
@@ -722,6 +724,9 @@ public class LoanReadPlatformServiceImpl implements LoanReadPlatformService, Loa
                    + " l.is_floating_interest_rate as isFloatingInterestRate, "
                    + " l.interest_rate_differential as interestRateDifferential, "
                    + " l.days_in_year_custom_strategy as daysInYearCustomStrategy, "
+                    + " l.enable_income_capitalization as enableIncomeCapitalization, "
+                    + " l.capitalized_income_calculation_type as capitalizedIncomeCalculationType, "
+                    + " l.capitalized_income_strategy as capitalizedIncomeStrategy, "
                    + " l.create_standing_instruction_at_disbursement as createStandingInstructionAtDisbursement, "
                    + " lpvi.minimum_gap as minimuminstallmentgap, lpvi.maximum_gap as maximuminstallmentgap, "
                    + " lp.can_use_for_topup as canUseForTopup, l.is_topup as isTopup, topup.closure_loan_id as closureLoanId, "
@@ -1098,6 +1103,11 @@ public class LoanReadPlatformServiceImpl implements LoanReadPlatformService, Loa
            final boolean interestRecognitionOnDisbursementDate = rs.getBoolean("interestRecognitionOnDisbursementDate");
            final StringEnumOptionData daysInYearCustomStrategy = DaysInYearCustomStrategyType
                    .getStringEnumOptionData(rs.getString("daysInYearCustomStrategy"));
+            final boolean enableIncomeCapitalization = rs.getBoolean("enableIncomeCapitalization");
+            final StringEnumOptionData capitalizedIncomeCalculationType = LoanCapitalizedIncomeCalculationType
+                    .getStringEnumOptionData(rs.getString("capitalizedIncomeCalculationType"));
+            final StringEnumOptionData capitalizedIncomeStrategy = LoanCapitalizedIncomeStrategy
+                    .getStringEnumOptionData(rs.getString("capitalizedIncomeStrategy"));

            return LoanAccountData.basicLoanDetails(id, accountNo, status, externalId, clientId, clientAccountNo, clientName,
                    clientOfficeId, clientExternalId, groupData, loanType, loanProductId, loanProductName, loanProductDescription,
@@ -1117,7 +1127,8 @@ public class LoanReadPlatformServiceImpl implements LoanReadPlatformService, Loa
                    lastClosedBusinessDate, overpaidOnDate, isChargedOff, enableDownPayment, disbursedAmountPercentageForDownPayment,
                    enableAutoRepaymentForDownPayment, enableInstallmentLevelDelinquency, loanScheduleType.asEnumOptionData(),
                    loanScheduleProcessingType.asEnumOptionData(), fixedLength, chargeOffBehaviour.getValueAsStringEnumOptionData(),
-                    interestRecognitionOnDisbursementDate, daysInYearCustomStrategy);
+                    interestRecognitionOnDisbursementDate, daysInYearCustomStrategy, enableIncomeCapitalization,
+                    capitalizedIncomeCalculationType, capitalizedIncomeStrategy);
        }
    }

@@ -81,6 +81,8 @@ import org.apache.fineract.portfolio.floatingrates.service.FloatingRatesReadPlat
 import org.apache.fineract.portfolio.fund.data.FundData;
 import org.apache.fineract.portfolio.fund.service.FundReadPlatformService;
 import org.apache.fineract.portfolio.loanaccount.api.LoanApiConstants;
+import org.apache.fineract.portfolio.loanaccount.domain.LoanCapitalizedIncomeCalculationType;
+import org.apache.fineract.portfolio.loanaccount.domain.LoanCapitalizedIncomeStrategy;
 import org.apache.fineract.portfolio.loanaccount.domain.LoanChargeOffBehaviour;
 import org.apache.fineract.portfolio.loanaccount.loanschedule.domain.LoanScheduleProcessingType;
 import org.apache.fineract.portfolio.loanaccount.loanschedule.domain.LoanScheduleType;
@@ -127,7 +129,10 @@ public class LoanProductsApiResource {
            LoanApiConstants.fixedPrincipalPercentagePerInstallmentParamName, LoanProductConstants.DUE_DAYS_FOR_REPAYMENT_EVENT,
            LoanProductConstants.OVER_DUE_DAYS_FOR_REPAYMENT_EVENT, LoanProductConstants.ENABLE_DOWN_PAYMENT,
            LoanProductConstants.DISBURSED_AMOUNT_PERCENTAGE_DOWN_PAYMENT, LoanProductConstants.ENABLE_AUTO_REPAYMENT_DOWN_PAYMENT,
-            LoanProductConstants.REPAYMENT_START_DATE_TYPE, LoanProductConstants.DAYS_IN_YEAR_CUSTOM_STRATEGY_TYPE_PARAMETER_NAME));
+            LoanProductConstants.REPAYMENT_START_DATE_TYPE, LoanProductConstants.DAYS_IN_YEAR_CUSTOM_STRATEGY_TYPE_PARAMETER_NAME,
+            LoanProductConstants.ENABLE_INCOME_CAPITALIZATION_PARAM_NAME,
+            LoanProductConstants.CAPITALIZED_INCOME_CALCULATION_TYPE_PARAM_NAME,
+            LoanProductConstants.CAPITALIZED_INCOME_STRATEGY_PARAM_NAME));

    private static final Set<String> PRODUCT_MIX_DATA_PARAMETERS = new HashSet<>(
            Arrays.asList("productId", "productName", "restrictedProducts", "allowedProducts", "productOptions"));
@@ -439,6 +444,10 @@ public class LoanProductsApiResource {
                .retrieveCodeValuesByCode(LoanApiConstants.CHARGE_OFF_REASONS);
        final List<StringEnumOptionData> daysInYearCustomStrategyOptions = DaysInYearCustomStrategyType
                .getValuesAsStringEnumOptionDataList();
+        final List<StringEnumOptionData> capitalizedIncomeCalculationTypeOptions = LoanCapitalizedIncomeCalculationType
+                .getValuesAsStringEnumOptionDataList();
+        final List<StringEnumOptionData> capitalizedIncomeStrategyOptions = LoanCapitalizedIncomeStrategy
+                .getValuesAsStringEnumOptionDataList();

        return new LoanProductData(productData, chargeOptions, penaltyOptions, paymentTypeOptions, currencyOptions, amortizationTypeOptions,
                interestTypeOptions, interestCalculationPeriodTypeOptions, repaymentFrequencyTypeOptions, interestRateFrequencyTypeOptions,
@@ -451,7 +460,7 @@ public class LoanProductsApiResource {
                advancedPaymentAllocationTypes, LoanScheduleType.getValuesAsEnumOptionDataList(),
                LoanScheduleProcessingType.getValuesAsEnumOptionDataList(), creditAllocationTransactionTypes,
                creditAllocationAllocationTypes, supportedInterestRefundTypesOptions, chargeOffBehaviourOptions, chargeOffReasonOptions,
-                daysInYearCustomStrategyOptions);
+                daysInYearCustomStrategyOptions, capitalizedIncomeCalculationTypeOptions, capitalizedIncomeStrategyOptions);
    }

 }
@@ -49,6 +49,8 @@ import org.apache.fineract.infrastructure.core.service.MathUtil;
 import org.apache.fineract.portfolio.calendar.service.CalendarUtils;
 import org.apache.fineract.portfolio.common.domain.PeriodFrequencyType;
 import org.apache.fineract.portfolio.loanaccount.api.LoanApiConstants;
+import org.apache.fineract.portfolio.loanaccount.domain.LoanCapitalizedIncomeCalculationType;
+import org.apache.fineract.portfolio.loanaccount.domain.LoanCapitalizedIncomeStrategy;
 import org.apache.fineract.portfolio.loanaccount.domain.LoanChargeOffBehaviour;
 import org.apache.fineract.portfolio.loanaccount.domain.LoanRepaymentScheduleTransactionProcessorFactory;
 import org.apache.fineract.portfolio.loanaccount.domain.transactionprocessor.impl.AdvancedPaymentScheduleTransactionProcessor;
@@ -186,7 +188,10 @@ public final class LoanProductDataValidator {
            LoanProductConstants.LOAN_SCHEDULE_PROCESSING_TYPE, LoanProductConstants.FIXED_LENGTH,
            LoanProductConstants.ENABLE_ACCRUAL_ACTIVITY_POSTING, LoanProductConstants.SUPPORTED_INTEREST_REFUND_TYPES,
            LoanProductConstants.CHARGE_OFF_BEHAVIOUR, LoanProductConstants.INTEREST_RECOGNITION_ON_DISBURSEMENT_DATE,
-            LoanProductConstants.DAYS_IN_YEAR_CUSTOM_STRATEGY_TYPE_PARAMETER_NAME));
+            LoanProductConstants.DAYS_IN_YEAR_CUSTOM_STRATEGY_TYPE_PARAMETER_NAME,
+            LoanProductConstants.ENABLE_INCOME_CAPITALIZATION_PARAM_NAME,
+            LoanProductConstants.CAPITALIZED_INCOME_CALCULATION_TYPE_PARAM_NAME,
+            LoanProductConstants.CAPITALIZED_INCOME_STRATEGY_PARAM_NAME));

    private static final String[] SUPPORTED_LOAN_CONFIGURABLE_ATTRIBUTES = { LoanProductConstants.amortizationTypeParamName,
            LoanProductConstants.interestTypeParamName, LoanProductConstants.transactionProcessingStrategyCodeParamName,
@@ -877,6 +882,8 @@ public final class LoanProductDataValidator {
                    "Charge off behaviour is only supported for Progressive loans");
        }

+        validateIncomeCapitalization(transactionProcessingStrategyCode, element, baseDataValidator);
+
        throwExceptionIfValidationWarningsExist(dataValidationErrors);
    }

@@ -1922,6 +1929,9 @@ public final class LoanProductDataValidator {

        validateRepaymentPeriodWithGraceSettings(numberOfRepayments, graceOnPrincipalPayment, graceOnInterestPayment,
                graceOnInterestCharged, recurringMoratoriumOnPrincipalPeriods, baseDataValidator);
+
+        validateIncomeCapitalization(transactionProcessingStrategyCode, element, baseDataValidator);
+
        throwExceptionIfValidationWarningsExist(dataValidationErrors);
    }

@@ -2660,6 +2670,39 @@ public final class LoanProductDataValidator {
        }
    }

+    private void validateIncomeCapitalization(String transactionProcessingStrategyCode, JsonElement element,
+            DataValidatorBuilder baseDataValidator) {
+        if (this.fromApiJsonHelper.parameterExists(LoanProductConstants.CAPITALIZED_INCOME_CALCULATION_TYPE_PARAM_NAME, element)) {
+            final String capitalizedIncomeCalculationType = this.fromApiJsonHelper
+                    .extractStringNamed(LoanProductConstants.CAPITALIZED_INCOME_CALCULATION_TYPE_PARAM_NAME, element);
+            baseDataValidator.reset().parameter(LoanProductConstants.CAPITALIZED_INCOME_CALCULATION_TYPE_PARAM_NAME)
+                    .value(capitalizedIncomeCalculationType).isOneOfEnumValues(LoanCapitalizedIncomeCalculationType.class);
+        }
+
+        if (this.fromApiJsonHelper.parameterExists(LoanProductConstants.CAPITALIZED_INCOME_STRATEGY_PARAM_NAME, element)) {
+            final String capitalizedIncomeStrategy = this.fromApiJsonHelper
+                    .extractStringNamed(LoanProductConstants.CAPITALIZED_INCOME_STRATEGY_PARAM_NAME, element);
+            baseDataValidator.reset().parameter(LoanProductConstants.CAPITALIZED_INCOME_STRATEGY_PARAM_NAME)
+                    .value(capitalizedIncomeStrategy).isOneOfEnumValues(LoanCapitalizedIncomeStrategy.class);
+        }
+
+        if (AdvancedPaymentScheduleTransactionProcessor.ADVANCED_PAYMENT_ALLOCATION_STRATEGY.equals(transactionProcessingStrategyCode)
+                && this.fromApiJsonHelper.parameterExists(LoanProductConstants.ENABLE_INCOME_CAPITALIZATION_PARAM_NAME, element)) {
+            Boolean enableIncomeCapitalization = this.fromApiJsonHelper
+                    .extractBooleanNamed(LoanProductConstants.ENABLE_INCOME_CAPITALIZATION_PARAM_NAME, element);
+            baseDataValidator.reset().parameter(LoanProductConstants.ENABLE_INCOME_CAPITALIZATION_PARAM_NAME)
+                    .value(enableIncomeCapitalization).ignoreIfNull().validateForBooleanValue();
+        } else if (this.fromApiJsonHelper.parameterExists(LoanProductConstants.ENABLE_INCOME_CAPITALIZATION_PARAM_NAME, element)) {
+            Boolean enableIncomeCapitalization = this.fromApiJsonHelper
+                    .extractBooleanNamed(LoanProductConstants.ENABLE_INCOME_CAPITALIZATION_PARAM_NAME, element);
+            if (Boolean.TRUE.equals(enableIncomeCapitalization)) {
+                baseDataValidator.reset().parameter(LoanProductConstants.ENABLE_INCOME_CAPITALIZATION_PARAM_NAME).failWithCode(
+                        "supported.only.for.progressive.loan.income.capitalization",
+                        "Income capitalization is only supported for Progressive loans");
+            }
+        }
+    }
+
    private Integer defaultToZeroIfNull(Integer value) {
        return value != null ? value : 0;
    }
@@ -45,6 +45,8 @@ import org.apache.fineract.portfolio.common.domain.DaysInYearCustomStrategyType;
 import org.apache.fineract.portfolio.common.service.CommonEnumerations;
 import org.apache.fineract.portfolio.delinquency.data.DelinquencyBucketData;
 import org.apache.fineract.portfolio.delinquency.service.DelinquencyReadPlatformService;
+import org.apache.fineract.portfolio.loanaccount.domain.LoanCapitalizedIncomeCalculationType;
+import org.apache.fineract.portfolio.loanaccount.domain.LoanCapitalizedIncomeStrategy;
 import org.apache.fineract.portfolio.loanaccount.domain.LoanChargeOffBehaviour;
 import org.apache.fineract.portfolio.loanaccount.loanschedule.domain.LoanScheduleProcessingType;
 import org.apache.fineract.portfolio.loanaccount.loanschedule.domain.LoanScheduleType;
@@ -288,8 +290,11 @@ public class LoanProductReadPlatformServiceImpl implements LoanProductReadPlatfo
                    + "lp.allow_variabe_installments as isVariableIntallmentsAllowed, " + "lvi.minimum_gap as minimumGap, "
                    + "lvi.maximum_gap as maximumGap, dbuc.id as delinquencyBucketId, dbuc.name as delinquencyBucketName, "
                    + "lp.can_use_for_topup as canUseForTopup, lp.is_equal_amortization as isEqualAmortization, lp.loan_schedule_type as loanScheduleType, lp.loan_schedule_processing_type as loanScheduleProcessingType, lp.supported_interest_refund_types as supportedInterestRefundTypes, "
-                    + "lp.charge_off_behaviour as chargeOffBehaviour" + " from m_product_loan lp "
-                    + " left join m_fund f on f.id = lp.fund_id "
+                    + "lp.charge_off_behaviour as chargeOffBehaviour, " //
+                    + "lp.enable_income_capitalization as enableIncomeCapitalization, " //
+                    + "lp.capitalized_income_calculation_type as capitalizedIncomeCalculationType, " //
+                    + "lp.capitalized_income_strategy as capitalizedIncomeStrategy " //
+                    + " from m_product_loan lp " + " left join m_fund f on f.id = lp.fund_id "
                    + " left join m_product_loan_recalculation_details lpr on lpr.product_id=lp.id "
                    + " left join m_product_loan_guarantee_details lpg on lpg.loan_product_id=lp.id "
                    + " left join m_product_loan_configurable_attributes lca on lca.loan_product_id = lp.id "
@@ -552,6 +557,11 @@ public class LoanProductReadPlatformServiceImpl implements LoanProductReadPlatfo
            final String chargeOffBehaviourStr = rs.getString("chargeOffBehaviour");
            final LoanChargeOffBehaviour loanChargeOffBehaviour = LoanChargeOffBehaviour.valueOf(chargeOffBehaviourStr);
            final boolean interestRecognitionOnDisbursementDate = rs.getBoolean("interestRecognitionOnDisbursementDate");
+            final boolean enableIncomeCapitalization = rs.getBoolean("enableIncomeCapitalization");
+            final StringEnumOptionData capitalizedIncomeCalculationType = LoanCapitalizedIncomeCalculationType
+                    .getStringEnumOptionData(rs.getString("capitalizedIncomeCalculationType"));
+            final StringEnumOptionData capitalizedIncomeStrategy = LoanCapitalizedIncomeStrategy
+                    .getStringEnumOptionData(rs.getString("capitalizedIncomeStrategy"));

            return new LoanProductData(id, name, shortName, description, currency, principal, minPrincipal, maxPrincipal, tolerance,
                    numberOfRepayments, minNumberOfRepayments, maxNumberOfRepayments, repaymentEvery, interestRatePerPeriod,
@@ -576,7 +586,7 @@ public class LoanProductReadPlatformServiceImpl implements LoanProductReadPlatfo
                    enableInstallmentLevelDelinquency, loanScheduleType.asEnumOptionData(), loanScheduleProcessingType.asEnumOptionData(),
                    fixedLength, enableAccrualActivityPosting, supportedInterestRefundTypes,
                    loanChargeOffBehaviour.getValueAsStringEnumOptionData(), interestRecognitionOnDisbursementDate,
-                    daysInYearCustomStrategy);
+                    daysInYearCustomStrategy, enableIncomeCapitalization, capitalizedIncomeCalculationType, capitalizedIncomeStrategy);
        }
    }

@@ -189,4 +189,5 @@
    <include file="parts/0168_transaction_summary_with_asset_owner_report_add_active_intermediate_filtering.xml" relativeToChangelogFile="true" />
    <include file="parts/0169_add_missing_permissions.xml" relativeToChangelogFile="true" />
    <include file="parts/0170_days_in_year_custom_strategy.xml" relativeToChangelogFile="true"/>
+    <include file="parts/0171_loan_capitalized_income.xml" relativeToChangelogFile="true"/>
 </databaseChangeLog>
@@ -0,0 +1,49 @@
+<?xml version="1.0" encoding="UTF-8"?>
+<!--
+
+    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.
+
+-->
+<databaseChangeLog xmlns="http://www.liquibase.org/xml/ns/dbchangelog"
+                   xmlns:xsi="http://www.w3.org/2001/XMLSchema-instance"
+                   xsi:schemaLocation="http://www.liquibase.org/xml/ns/dbchangelog http://www.liquibase.org/xml/ns/dbchangelog/dbchangelog-4.3.xsd">
+    <changeSet author="fineract" id="1">
+        <addColumn tableName="m_loan">
+            <column name="enable_income_capitalization" type="boolean" defaultValueBoolean="false">
+                <constraints nullable="false"/>
+            </column>
+            <column name="capitalized_income_calculation_type" type="VARCHAR(100)">
+                <constraints nullable="true"/>
+            </column>
+            <column name="capitalized_income_strategy" type="VARCHAR(100)">
+                <constraints nullable="true"/>
+            </column>
+        </addColumn>
+        <addColumn tableName="m_product_loan">
+            <column name="enable_income_capitalization" type="boolean" defaultValueBoolean="false">
+                <constraints nullable="false"/>
+            </column>
+            <column name="capitalized_income_calculation_type" type="VARCHAR(100)">
+                <constraints nullable="true"/>
+            </column>
+            <column name="capitalized_income_strategy" type="VARCHAR(100)">
+                <constraints nullable="true"/>
+            </column>
+        </addColumn>
+    </changeSet>
+</databaseChangeLog>
@@ -98,7 +98,8 @@ public class DefaultScheduledDateGeneratorTest {
                Money.of(fromApplicationCurrency(dollarCurrency), ZERO), false, null, EMPTY_LIST, BigDecimal.valueOf(36_000L), null,
                DaysInMonthType.ACTUAL, DaysInYearType.ACTUAL, false, null, null, null, null, null, ZERO, null, NONE, null, ZERO,
                EMPTY_LIST, true, 0, false, holidayDetailDTO, false, false, false, null, false, false, null, false, DISBURSEMENT_DATE,
-                submittedOnDate, CUMULATIVE, LoanScheduleProcessingType.HORIZONTAL, null, false, null, null, false, null);
+                submittedOnDate, CUMULATIVE, LoanScheduleProcessingType.HORIZONTAL, null, false, null, null, false, null, false, null,
+                null);

        // when
        List<? extends LoanScheduleModelPeriod> result = underTest.generateRepaymentPeriods(mathContext, expectedDisbursementDate,
@@ -179,7 +180,7 @@ public class DefaultScheduledDateGeneratorTest {
                EMPTY_LIST, BigDecimal.valueOf(36_000L), null, DaysInMonthType.ACTUAL, DaysInYearType.ACTUAL, false, null, null, null, null,
                null, ZERO, null, NONE, null, ZERO, EMPTY_LIST, true, 0, false, holidayDetailDTO, false, false, false, null, false, false,
                null, false, DISBURSEMENT_DATE, submittedOnDate, CUMULATIVE, LoanScheduleProcessingType.HORIZONTAL, null, false, null, null,
-                false, null);
+                false, null, false, null, null);
    }

    private HolidayDetailDTO createHolidayDTO() {