Line of Credit

Goals

• Allow Fineract to support basic open-ended credit, i.e, a loan account on which borrows can make multiple withdrawals subject to the total balance being lesser than a predefined limit.

Background and strategic fit

Fineract 1.x has good support for term loans , i.e loans wherein a complete repayment schedule is generated at the time of approval/disbursal. However, it lacks support for revolving credit / line of credits / open ended loans like credit cards. Introducing the same in Fineract-CN would help differentiate it from Fineract 1.x and encourage users having these requirements to implement Fineract-CN

Assumptions

The specification isn't comprehensive and does not deal with functionality already present in Fineract 1.x / enterprise forks of Fineract 1.x which are a pre-requisite to support the loan in its entirety, which include

• All common loan product settings including fees, penalties, interest rates, amortization, repayment strategies, moratoriums, arrears tolerance etc
• Integration with accounting
• Loan origination
• Loan servicing including delinquency and defaults management
• Collateral management
• Customer exposure limits

The specification instead focuses on the additional features required in the loan module to support open-ended credit

Requirements

User interaction and design

Questions

Below is a list of questions to be addressed as a result of this requirements document:

Not Doing