LoanCreator

loan_creator gem intends to provide a set of methods to allow automatic generation of loan timetables, for simulation, from a lender point of view and from a borrower point of view, regarding financial rounding differences. As of today, the gem makes the borrower support any rounding issue. In a later work, an option should be provided to decide who supports such issues.

Add this line to your application's Gemfile:

gem 'loan_creator'

And then execute:

$ bundle

Or install it yourself as:

$ gem install loan_creator

Parent module

    module LoanCreator

There are four types of loans. All inherit from a LoanCreator::Common class.

    LoanCreator::Standard
    LoanCreator::Linear
    LoanCreator::InFine
    LoanCreator::Bullet
    LoanCreator::UncapitalizedBullet

Each instance of one of the previous classes has the following attributes:

    :period
    :amount
    :annual_interests_rate
    :starts_at
    :duration_in_periods
    :deferred_in_periods (defaults to zero)
    :interests_start_date (optional)
    :initial_values (to generate a timetable from a previous term or at a given state)
    :realistic_durations (optional, defaults to false)

Initial values must be a hash with specific keys, like so:

{
    paid_capital: 0,
    paid_interests: 11000.0,
    accrued_delta_interests: 0,
    starting_index: 2,
    due_interests: 0
}

There is also a LoanCreator::Timetable class dedicated to record the data of the loans' terms. Each instance of LoanCreator::Timetable represents an array of LoanCreator::Term records, each having the following attributes:

      # Term number (starts at 1)
      :index

      # Term date
      :due_on

      # Remaining due capital at the beginning of the term
      :crd_beginning_of_period

      # Remaining due capital at the end of the term
      :crd_end_of_period

      # Theoricaly due interests
      :period_theoric_interests

      # Difference between theorical and real (rounded) due interests
      :delta_interests

      # Accrued interests' delta
      :accrued_delta_interests

      # Adjustment of -0.01 0 or +0.01 cent depending on accrued_delta_interests
      :amount_to_add

      # Interests to pay this term
      :period_interests

      # Capital to pay this term
      :period_capital

      # Total capital paid so far (including current term)
      :total_paid_capital_end_of_period

      # Total interests paid so far (including current term)
      :total_paid_interests_end_of_period

      # Amount to pay this term
      :period_amount_to_pay

      # Whether or not to use the real number of days in each month
      :realistic_durations

#periodic_interests_rate renders a precise calculation of the loan's periodic interests rate based on two inputs: #annual_interests_rate and #period.

#lender_timetable shall be defined in each loan class. It renders an instance of LoanCreator::Timetable which contains an ascending order array of LoanCreator::Term. It takes into account financial rounding differences and makes the borrower support all those differences.

.borrower_timetable(*lenders_timetables) (class method) intends to sum each attribute of each provided lender_timetable on each term and thus to provide an ascending order array of LoanCreator::Term. It should be used for the borrower of a loan, once all lenders and their lending amounts are known. It makes the borrower support all financial rounding differences.

loan_creator = LoanCreator::Standard.new(
  period: :year,
  amount: 42_000,
  annual_interests_rate: 4,
  starts_on: '2019-03-01',
  duration_in_periods: 5,
  deferred_in_periods: 1,
  interests_start_date: '2019-02-10'
)
loan_creator.lender_timetable
# => #<LoanCreator::Timetable:0x0000000003198bd0 @terms=[...] ...>
loan_creator.lender_timetable.terms.first
# => #<LoanCreator::Term:0x00000000030f1a88 @crd_beginning_of_period=0.42e5,
# [...] @period_amount_to_pay=0.8745e2, @index=0, @due_on=Sun, 10 Feb 2019>

Standard loan generates terms with constant payments.

Linear loan generates terms with constant capital share payment.

Standard and Linear loans may be capital-deferred, i.e. capital repayment is delayed.
Interests are to be payed normally during this period.

InFine loan generates terms where terms' payments are composed by interests only.
Capital share shall be repaid in full at loan's end.

Bullet loan generates terms where terms' payments are zero.
Interests are capitalized, i.e. added to the borrowed capital on each term.
Capital share shall be repaid in full and all interests paid at loan's end. N.b.: Due capitalized interests to date are stored into terms under due_intesrests_ columns

UncapitalizedBullet same as bullet, the only difference is the interests
are NOT capitalized. N.b.: Due interests to date are stored into terms under due_intesrests_ columns

There is no deferred time for InFine and Bullet loans as it would be equivalent to increasing loan's duration.

period: A Symbol. :month, :quarter, :semester or :year.

duration_in_periods: An Integer.

amount: Any number that can be converted to BigDecimal.

annual_interests_rate: In percentage. Any number that can be converted to BigDecimal.

starts_at: A Date, or a String that can be parsed.

deferred_in_periods: Optional. An Integer, smaller than duration_in_periods. Number of periods during which no capital is refunded, only interest. Only relevant for Standard and Linear loans.

interests_start_date: Optional. To be used when the loan starts before the first full term date. This then compute an additional term with only interests for the time difference. For example, with a start_at in january 2020 and a interests_start_date in october 2019, the timetable will include a first term corresponding to 3 months of interests.

realistic_durations: Optional. A boolean that specifies whether or not to use the real number of days in each month when calculating the periodic interests rate (ie: for a period between January 1st 2021 and February 1st 2021 the period rate is annual_interests_rate * 31/355). Note that leap years are taken into account (ie: for a period between January 1st 2020 and February 1st 2020 the period rate is annual_interests_rate * 31/356). Also, an overlaping period take each parts into account (ie: for a period between December 1st 2020 and February 1st 2021, the period rate is (annual_interests_rate * (31/355) + annual_interests_rate * (31/356))) Default: false. The default behaviour is to use the period in relation to the number of months in a year (ie: for a monthly timetable annual_interests_rate * 1/12, for quarter annual_interests_rate * 3/12, etc.)

term_dates: Optional. Implemented for LoanCreator::Bullet, LoanCreator::InFine and LoanCreator::Linear. Can be used if you want to implement custom due dates for terms. Terms will be computed from date to date. Must be an array with following dates. Must contain duration + 1 dates. The first element of the array is the first period start_date and last is the last period pay day.

An excel simulator for standard case can be found here.

After checking out the repo, run bin/setup to install dependencies. Then, run bundle exec rspec to run the tests. You can also run bin/console for an interactive prompt that will allow you to experiment.

To install this gem onto your local machine, run bundle exec rake install. To release a new version, update the version number in version.rb, and then run bundle exec rake release, which will create a git tag for the version, push git commits and tags, and push the .gem file to rubygems.org.

Bug reports and pull requests are welcome on GitHub at https://github.com/CapSens/loan_creator.

The gem is available as open source under the terms of the MIT License.