Glossary of Terms
Here is a non-exhaustive list of words/phrases/concepts (with descriptions) you might come across while using Mifos X. In case you come across more such words/phrases/concepts and feel that they may aid others in understanding Mifos X better, feel free to add them to this page.
Bulk loan reassignment
Several loans can be reassigned to a different loan officer in one go.
Fees that a financial institution charges for the services it offers. Charges are flexible and can be changed by financial institutions to suit their requirements.
Declining balance
The interest for a particular repayment is calculated on the remaining principal to be paid and not on the initial principal amount.
The act of giving the loan money to the client.
Equal Installments
An amortization method for a loan, which means the amount paid by the client stays constant during every repayment.
Equal principal payments
The principal amount is divided equally over the said repayment time period. Hence, the principal amount that is paid in each repayment is the same.
Flat interest method
A fixed interest is calculated based on the initial principal amount.
A source of money received to create loans or carry out other financial institution functions.
Loan Officer
A financial institution employee permitted to act on client loan accounts.
Loan Product
A loan template with a unique name, defined rules, attributes, and default values.
Loan state-Active
A loan application that has been approved and is waiting for disbursement or has been already disbursed. Indicates an “Active” Loan.
Loan state- Closed
A loan application that has been rejected, withdrawn or all repayments have been completed, and now the loan is “closed”.
Loan state—Pending
A loan application waiting for approval.
Individual Loan
In an individual loan, the individual is totally responsible for repayment of the loan and for payment of any associated fees.
Group Loan
In a group loan, the group as a whole is responsible for repayment and fees, and each participant in the group has a designated responsibility to pay their part of the debt. In a group loan, the group has a single loan account and the group is the primary unit that the financial institution interacts with; a single repayment schedule is maintained for the group. The group provides credit worthiness to all its participants; if one participant in the group is delinquent, then all group participants are considered delinquent.
Loan Account
A loan account is a specific instance of a loan product, with a specified interest rate and an account number, and it is owned by a financial institution client.
GLIM (group loans individual monitoring)
Calculates performance history separately for each participant in a group loan.
GLIM loan
The group is the primary unit that participates in transactions, but the performance history of each participant is calculated in a slightly different way than a regular group loan.
Overdue Loans
Loans that remain unpaid past their due (or maturity) date. All financial arrangements become overdue one business day after their due date.
You can also refer to the older Mifos X glossary for more information here:
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