Mifos X Smart Contract & Loan Agreement Summarization with LLMs

Loan agreements are supposed to protect borrowers. In practice, most people sign them without understanding what they say, not because they're careless, but because these documents are written in language that takes training to parse. For the rural borrowers and small business owners that Mifos X was built to serve, this gap is not a minor inconvenience. It is a direct risk to their financial wellbeing. This project builds an LLM-powered summarization layer that integrates directly into Mifos X. A loan officer pastes a contract or pulls a loan product from Mifos X via the Fineract REST API, and the system extracts every key financial term like loan amount, interest rate, repayment schedule, every fee. It runs a mathematical consistency check on the numbers, and returns a plain-language summary written so anyone can understand it before they sign. Every extracted value is verified against the source text before reaching the screen, so the tool never silently surfaces wrong information. For MFIs with strict data privacy requirements, the system supports fully local inference via Ollama, no borrower data ever leaves their server. Before writing this proposal I built a working POC, deployed at https://loan-analyzer.streamlit.app/ , to prove the core pipeline actually works on real contracts. That POC is the foundation. The GSoC project takes it from a proof of concept into a properly integrated Mifos tool, with three deliverables: a working application connected to Mifos X with summaries generated in under ten seconds; a documented LLM evaluation comparing four providers on accuracy, readability, speed, and cost submitted to the Mifos wiki; and a clean codebase any contributor can clone and run in under fifteen minutes.