Settlement & Write-Off

The Settlement feature allows operators to calculate and execute loan settlements (partial or full payoff) and write-offs in Fineract.

How It Works

1. Find Loan - Enter the loan ID or external ID
2. Preview - System calculates the settlement amount by component (principal, interest, fees, penalties)
3. Execute - Posts the settlement to Fineract

Settlement Flow

1. Enter the loan ID and click Search
2. The system fetches the loan's current outstanding from Fineract
3. Enter the settlement amount
4. Preview shows how the amount will be allocated:
   • Outstanding principal
   • Outstanding interest
   • Outstanding fees
   • Outstanding penalties
5. Click Execute Settlement to post to Fineract

Settlement Rules

Settlement products can be configured to control the allocation order. For example:

• Principal first, then interest, then fees
• Interest first, then principal, then fees

Configure rules per loan product via Settlement > Configure Rules.

API Endpoints

Method	Path	Description
GET	/api/settlement/loan/{loan_id}	Get loan details for settlement
GET	/api/settlement/preview/{loan_id}	Preview settlement allocation
POST	/api/settlement/execute/{loan_id}	Execute settlement
GET	/api/settlement/products	List loan products with settlement rules
POST	/api/settlement/products/{id}/configure	Configure settlement component order