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FINERACT-1724: [doc] Downpayment user documentation
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‎fineract-doc/src/docs/en/chapters/features/downpayment.adoc‎

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= Downpayment
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== Overview
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Downpayment is a feature that allows a customer to make a partial payment at the time of loan application.
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It is an initial instalment due the same day as the disbursement. Every disbursement initiates a downpayment.
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The downpayment amount is then used to reduce the loan amount.
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== Configuration
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Downpayment can be configured in the loan product settings.
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On the Settings tab there is a checkbox called 'Enable downpayment'.
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Clicking on it brings up two attributes which can be set on downpayment:
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* ‘Disbursed Amount percentage Down Payment’ - mandatory field. Here can be set that how many percent of the Disbursed amount will be the actual downpayment.
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* ‘Enable Auto Repayment for Down Payment’ - optional, checkbox. If enabled, downpayment will be automatically paid on raising.
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== Scope
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Downpayment can be applied both for Loan products with Loan schedule type: cumulative and progressive.
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Loans with or without interest can have downpayment.
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== Usage
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Downpayment can be used in the loan application process.
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When a new Loan is created with a Loan Product that has downpayment enabled, the downpayment amount is calculated based on the 'Disbursed Amount percentage Down Payment' attribute.
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In the Repayment schedule the downpayment is shown as a separate instalment due on the same day as the disbursement. If 'Enable Auto Repayment for Down Payment' is enabled, the downpayment will be automatically paid on raising.
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Downpayment does not count as an installment in the context that upon loan creation if X installments set, then the downpayment will be the first (initial) installment followed by X regular installments.
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If the downpayment is not paid on time, it will be marked as overdue the same way as a regular installment.
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Reversing a disbursement also rolls back the associated downpayment transaction.
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Charges due on dowpayment date will be added to the first installment, not to the downpayment.
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In case of interest bearing loan, interest will not be realised on downpayment.
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== Example
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We have a progressive Loan product, with disbursed amount 100, 7% annual interest rate, 6 installments and 25% downpayment with auto repayment enabled.
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Repayment schedule on disbursement day:
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[cols="1,1,3,3,2,2,2,1,1,1,1,1,1,1", options="header"]
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|===
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| Nr
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| Days
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| Date
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| Paid date
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| Balance of loan
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| Principal due
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| Interest
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| Fees
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| Penalties
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| Due
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| Paid
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| In advance
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| Late
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| Outstanding
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|
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|
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| 01 January 2024
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|
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| 100.0
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|
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|
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| 0.0
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|
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| 0.0
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| 0.0
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|
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|
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|
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| 1
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| 0
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| 01 January 2024
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| 01 January 2024
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| 75.0
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| 25.0
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| 0.0
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| 0.0
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| 0.0
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| 25.0
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| 25.0
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| 0.0
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| 0.0
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| 0.0
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| 2
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| 31
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| 01 February 2024
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|
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| 62.68
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| 12.32
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| 0.44
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| 0.0
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| 0.0
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| 12.76
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| 0.0
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| 0.0
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| 0.0
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| 12.76
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| 3
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| 29
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| 01 March 2024
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|
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| 50.29
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| 12.39
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| 0.37
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| 0.0
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| 0.0
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| 12.76
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| 0.0
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| 0.0
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| 0.0
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| 12.76
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| 4
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| 31
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| 01 April 2024
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|
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| 37.82
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| 12.47
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| 0.29
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| 0.0
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| 0.0
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| 12.76
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| 0.0
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| 0.0
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| 0.0
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| 12.76
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| 5
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| 30
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| 01 May 2024
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|
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| 25.28
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| 12.54
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| 0.22
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| 0.0
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| 0.0
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| 12.76
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| 0.0
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| 0.0
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| 0.0
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| 12.76
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| 6
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| 31
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| 01 June 2024
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|
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| 12.67
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| 12.61
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| 0.15
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| 0.0
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| 0.0
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| 12.76
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| 0.0
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| 0.0
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| 0.0
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| 12.76
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| 7
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| 30
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| 01 July 2024
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|
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| 0.0
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| 12.67
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| 0.07
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| 0.0
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| 0.0
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| 12.74
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| 0.0
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| 0.0
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| 0.0
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| 12.74
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|===
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