Overdraft Product

Beginning at the main screen, select Admin, then Products from the drop-down menu. This will launch the Products menu.

Overdraft should be defined in the Savings product itself by enabling Overdraft allowed as shown in the illustrations below.

Select Savings Products.

Create Savings Product


Please refer above Details - Image, Details mentioned above are updated with respect to the provided fields numbers.

  • 1 - Provide Overdraft Product name.

  • 2 - Provide Short name.

  • 3 - Provide Description of this product.


  • 4 - Select Currency. Need to have defined required currency: Currency Configuration

  • 5 - Provide Decimal places.

  • 6 - Provide Currency in multiples of. This is to provide total rounding off amount. For example: 10, so Total amount gets rounded of to 10's.


  • 7 - Provide Nominal annual interest (Rate of interest) - Will calculate the interest on the positive balance.

  • 8 - Select Interest compounding period. For more information refer: Savings Interest Calculation and Posting Daily Monthly Quarterly Semi-Annual Annually

  • 9 - Select Interest posting period - Interest get posted for the selected frequency period. For more information refer: Savings Interest Calculation and Posting Monthly Quarterly Semi-Annual Annually

  • 10 - Select Interest calculated using. For more information refer: Savings Interest Calculation and Posting Daily Balance Average daily balance

  • 11 - Select Days in year - depending upon your financial days in a year practice. 365 Days 360 Days

Settings - Enabling overdraft

Skip to 19:

12 to 18 are the other fields which are required for creating - Savings Products, you can ignore and skip to 19.

  • 19: Checking the check box enables Overdraft allowed and opens up new fields: 19-a, 19-b and 19-c.

  • 19-a: Maximum Overdraft amount limit - Set overdraft limit amount here, example: 100000 where an overdraft cannot be crossed with this set limit.

  • 19-b: Nominal annual interest for overdraft - Provide annual rate of interest. Will calculate the interest on the negative balance, that is, on the overdraft amount.

  • 19-c: Min Overdraft Required For Interest calculation - Provide in case you want to provide minimum overdraft required for interest calculation.


In order to use Add charge, you should have already defined it in charges. For more information on charges refer here: Charges


By default Accounting will be disabled - None:- Meaning If you are using this product for various transactions like deposits, withdrawals, etc. These transactions are not passed in journal entry.

Enabling accounting for the savings product:->> You should have created chart of accounts, for more information refer: https://mifosforge.jira.com/wiki/display/docs/Chart+of+Accounts+and+General+Ledger+Setup.>> To enable Accounting, you need to select cash accounting. As of now, Mifos x supports only cash accounting for savings product.

  • Cash

>> Map accounts with respect to the savings product accounts. For information on these accounts refer: A Possible accounting Spec - Accounting rules for savings.

Advanced Accounting Rule

On clicking on the show button, it enables Advanced accounting rule.

If you click on Add button, it will expand and show up selection drop-downs.

  • Configure Fund sources for Payment Channels. Example: In the image shown above, Payment type - Cheque is mapped to Fund source - Bank. So whenever payment type is used for transaction. Journal entry for Account - Bank will be passed.

  • Map Fees to Income Accounts.

  • Map Penalties to Specific Income Accounts

Click on Submit button to Save/Create savings product.

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