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Fee Templates
For the purposes of this table:
APR: Defines if the fee is included into APR calculation
Dupl: Defines if the fee can be duplicated, i.e. you can create several fees based on this template.
RS: Defines if the fee can be used in the products when restructuring a loan
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Template Name
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Description
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Periodicity
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APR
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Dupl
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RS
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Administration fee
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Fee Table
You can use this table for fast reference. Please keep in mind that the table might be missing some of the details provided further the article.
Template Name | Description | Periodicity | APR | Dupl | RS |
|---|---|---|---|---|---|
Administration fee | Applied to each loan installment to cover |
administration costs. |
Configurable as a fixed amount or |
percentage. | Each installment. | + | + | + |
Disbursement fee |
Charged on loan disbursement as a fixed amount or |
percentage. Included in the loan but deducted from the disbursed amount. |
Upon disbursement. | + | + | + |
Down payment | An upfront payment made by the Customer, deducted from the loan amount |
Decrease amount to disburse.
Disbursement fees are applied and immediately paid as soon as a loan is disbursed, regardless of their priority in the fees list.
Make a note that in case of multiple disbursements, this fee is applied every time, to everyto reduce the principal to be financed. Deducted from the loan amount. | One-time fees, when the payment transaction is done by the Customer before disbursement. | + |
- |
+
Down payment
The Down payment amount is a part of the purchase price that a borrower decides to pay and the loan amount will be calculated as a subtraction down payment from the purchase price.
Waiting for the payment on the Servicing WP. Can not overpay. 'Pending initial payments' status until a customer pays the down payment amount in full.
'0' Installment will be added to the schedule.
One-time fees, when the payment transaction is done by the Customer before disbursement.
+
-
-
Late fee
Some types of loan products accrue penalties for late payments. A late fee can be added to a credit product as a fixed amount or percent or rate.
The penalty is charged once payment is delayed by a number of days specified in the agreement (Installment past due). There may be several commissions of past due days, and for each of them, different amounts of fine may be charged.
example:
Late fee 1:
DPD = 5 days, percent = 1%
Late fee 2:
DPD = 10 days, amount = $20
Once the rule is applied and a fee is charged, this rule is no longer checked and applied for this installment. However, it can be applied for other installments - the DPD value for each installment is calculated based on this installment's Due Date.
- | |||||
Late fee | Penalty for late payments. Charged once payment is delayed by a specified number of days. | Once - as per the late payment schedule | - | + | + |
Leasing payment | Applied and must be defined when the loan type is Leasing | Each payment transaction | - | + | + |
NSF | Charged when a payment fails due to insufficient funds. | Each failed payment | - | + | + |
Origination fee | One-time fee for loan origination. | Included in the first installment. | + | + | + |
Past due interest | Interest on overdue payments, calculated daily/weekly/monthly/yearly. | Daily/ weekly/ monthly/ yearly as long as the loan is in the Past Due status | - | + | + |
Payment holiday interest fee | A daily/weekly/monthly/yearly interest charged when a payment holiday is granted. | As long as a Payment holiday is applied. | - | + | + |
Payoff fee | One-time fee for early loan repayment. | Once, when the loan is paid off ahead of the schedule. | - | + | + |
Leasing payment
Leasing payment is available when the loan type is - Leasing.
'Leasing payment' commission can be specified as a percent of the Loan Amount or as a fixed amount (not depending on Loan Amount).
It is expected that only one lease payment is added to the credit product, however, you are free to add a set of such commissions if it corresponds to your business needs.
Pre-approval fee | Fee paid before loan application approval. Loan cannot be approved until the fee is paid | One-time, before approval (zero-installment is created) | - | + |
+
NSF
Non-sufficient funds (NSF) is the term used when the checking account is overdrawn — meaning there is not enough money in the account to pay the check written against it. The bank (payment provider) returns the “bounced” check to the account holder and charges a returned check charge or an NSF fee. A returned check stamped with NSF means that the check wasn't honored by the bank because the account holder doesn’t have enough funds in the account or the account has been closed. In this case, the System will apply an NSF fee on the loan in an amount predefined in the Credit Product settings.
NSF fee is accrued automatically in case a payment transaction is failed with the following return statuses:
result = "Decline Insufficient funds",
ORresult = "Returned".
NSF charges apply once a monthly payment from a borrower does not go through.
-
+
+
Origination fee
Regardless of the payment schedule calculation method, the Origination Fee adds to the first installment (i.e. it is a part of the first scheduled payment).
An Origination Fee can be added to a credit product as a fixed amount or percent or rate.
A one-time fee applied to loans to cover the price of origination.
+
+
+
Past due interest
Interest for late payments is accrued in the system depending on the Past Due Interest setting in the Credit Product. It can be based on:
Past due principal
Outstanding principal
Loan amount
Past due interest may be applied to late payments in addition to a late fee(s).
The interest on arrears is calculated daily/ weekly/ monthly/ yearly(commissions settings) as a percentage.
Daily/ weekly/ monthly/ yearly fees are applied to a loan in case an installment isn't paid on schedule.
-
+
+
Payment holiday interest fee
The Payment holiday interest fee is an additional charge applied once a Payment holiday is created.The interest on arrears is calculated daily/ weekly/ monthly/ yearly(commissions settings) as a percentage.
Once, when a Payment holiday is applied.
-
+
+
Payoff fee
A Payoff fee can be can be set in the credit product settings as a fixed amount or percent or rate of the Outstanding principal.
Once a repayment transaction with the "Payoff" type is created, a calculated payoff fee is accrued and paid first.
Payoff fee is a sum of all fees that are assigned an Event Type 'On payoff' in the Credit Product.
If Value Type for any of the fees are set as a percentage, then the fee value is calculated from the remaining principal amount.
A one-time fee applied when the loan is paid off ahead of the schedule.
-
+
+
Pre-approval fee
A fee to be paid by a customer for a new loan before the application will be sent for approval.
A pre-approval fee can be set up on the CP as an amount.
Waiting for the payment on the Originator WP. Can be paid partly, cannot be overpaid. 'Pending initial payments' status until a customer pays the pre-approval fee amount in full. If the payment isn't made, the loan gets expired.
'0' Installment will be added to the schedule.
A one-time fee applied to loans that should be paid while the loan has a status 'Pending initial payments' (Before approval).
-
+
-
Pre-disbursement fee
A special kind of initial payment. It's a fee to be paid by a customer for an approved loan to allow disbursement.
A pre-approval fee can be set up on the CP as a fixed amount or percent or rate.
Waiting for the payment on the Servicing WP. Can be paid partly, cannot be overpaid. 'Pending initial payments' status until a customer pays the Pre-disbursement fee amount in full. If the payment isn't made, the loan gets expired.
"0" Installment will be added to the schedule.
A one-time fee applied to loans that should be paid while the loan has a status 'Pending initial payments'(Before disbursement).
-
+
-
Repayment fee
A repayment fee can be added to a Credit Product as a fixed amount or percent or rate.
Once a repayment transaction is applied, a calculated repayment fee amount is deducted from the transaction amount. The rest is applied according to the general rules.
The amount can be chosen:
Amount to be applied – the specified amount will count towards loan repayment. Taxes and fees will be added to it.
Transaction amount – taxes and fees will be deducted from the specified amount and the remainder will count towards loan repayment.
A repayment fee is a sum of all fees that are assigned an Event Type 'On payment' in the Credit Product.
If Value Type for any of the fees are set as a percentage, then the fee value is calculated from the transaction amount.
The base for Repayment Fee, % doesn't include Sales taxes.
For each payment transaction.
-
+
+
Sales tax
Sales tax can only be specified as a percentage and can be set as a constant value or with fee ranges.
Sales Tax = Paid Principal * Sales tax % rate.
The amount can be chosen:
Amount to be applied – the specified amount will count towards loan repayment. Taxes and fees will be added to it.
Transaction amount – taxes and fees will be deducted from the specified amount and the remainder will count towards loan repayment.
If some fees with Calculation basis ='Paid Principal' are added to the credit product, then these fees are accrued one by one according to 'Accrual priority', so the Installment payment amount for the second fee includes the already accrued first fee amount- | |||||
Pre-disbursement fee | Fee paid before loan disbursement. Loan cannot be disbursed until the fee is paid | One-time, before disbursement (zero-installment is created) | - | + | - |
Repayment fee | Charged each time a repayment is made. Deducted from the repayment. | For each payment transaction. | - | + | + |
Sales tax | Applied as a percentage of the paid principal. Deducted from the repayment. | For each payment transaction. | - | - | + |
How to manage Fees
Settings → Loan settings → Credit products
In the Credit Product settings you can define commissions to be automatically accrued to the loan:
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loans of the Credit Product
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For each fee you will see a window with dedicated settings (as shown below). The settings of each specific fee are displayed below
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Fee Types and Their Settings
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The administration fee is a recurring charge applied to each loan installment to cover the administrative costs associated with managing the loan. This fee ensures that the lender Lender can maintain efficient processing and servicing of the loan throughout its term.
For instance, if a borrower Customer takes out a loan with monthly installments, the administration fee might be $10 per installment. Alternatively, it could be set at 1% of the loan installment amount, meaning if the monthly installment is $500, the administration fee would be $5.
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Field name | Parameters | Description |
|---|---|---|
Name | Administration fee | Full fee name Can be edited. |
Calculation basis |
| Define the fee base if the fee is set as a percent or rate. If a fee value is "Amount", the calculation basis is unavailable. |
Use variable fee value |
| Allows different loans based on this credit product to have different fee values within the available range (Min value, Max value). The fee value is used as the default for every loan created by a borrowerCustomer. |
Who can edit the fee:
| If "Use variable fee value" is enabled, it is possible to choose who will be permitted to edit the fee value. | |
Fee value |
| This value is used as the Commission Rate for all loans created using this Credit Product. |
Accrual mode |
| Choose a suitable accrual mode. |
Loan phase |
| Define the loan phase(s) applicable if Grace Period is defined for the Credit Product. |
Payoff settings General: by date |
| Define which part of currently accrued but unpaid amount shall oblige in case of payoff. |
Payoff settings General: future |
| Define which part of currently scheduled but not yet accrued amount shall oblige in case of payoff. |
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The disbursement fee is charged each time funds are disbursed to the borrowerCustomer. It can be set as a fixed amount or a percentage of the disbursed loan amount. This fee is deducted from the total loan amount upon disbursement, and the remaining funds are transferred to the borrowerCustomer, in particular for multiple disbursements, this fee is applied every time, to every disbursement.
For example, if a borrower Customer is approved for a loan of $10,000 and the disbursement fee is 2%, $200 will be deducted as the fee, and the borrower Customer will receive $9,800
Periodicity: Disbursement fees are applied and immediately paid as soon as a loan is disbursed, regardless of their priority in the fees list.
Included in APR calculation: Yes
Multiple fees allowed: Yes
Applicable in loan restructuring: Yes
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The down payment is a portion of the purchase price that the borrower Customer pays upfront. This amount is deducted from the loan amount to reduce the principal that needs to be financed. The down payment is typically required before the loan disbursement.
For example, if a borrower Customer agrees to purchase an item for $20,000 and makes a down payment of $5,000, the loan amount would make $15,000.
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Field name | Parameters | Description |
|---|---|---|
Name | Down payment | Full fee name |
Calculation basis |
| Define the fee base if the fee is set as a percent or rate. If a fee value is "Amount", the calculation basis is unavailable. |
Fee value |
| This value is used as the Commission Rate for all loans created using this Credit Product. |
Use variable fee value |
| Allows different loans based on this credit product to have different fee values within the available range (Min value, Max value). The fee value is used as the default for every loan created by a borrowerCustomer. |
Who can edit the fee:
| If "Use variable fee value" is enabled, it is possible to choose who will be permitted to edit the fee value. |
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The late fee is a penalty charged when a borrower Customer fails to make a loan payment by the due date. This fee can be a fixed amount or a percentage of the overdue payment and serves as an incentive for borrowers Customers to make timely payments and compensates the lender Lender for the inconvenience and potential risk of late payments.
For example, If a borrower Customer misses a monthly payment of $500 and the late fee is set at $25 or 5% of the overdue amount, the borrower Customer would incur an additional charge of $25 or $25 (5% of $500).
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The NSF fee is applied when a borrower’s Customer’s payment fails due to insufficient funds in their account. This fee compensates the lender Lender for the costs associated with handling the failed transaction and encourages borrowers Customers to ensure sufficient funds are available for their payments.
NSF fee is accrued automatically in case a payment transaction is failed with the following return statuses: result = "Decline Insufficient funds" or result = "Returned".
For example, if a borrower’s Customer’s monthly loan payment of $600 is returned due to non-sufficient funds, and the NSF fee is set at $35, the borrower Customer would be charged this additional fee on top of the missed payment.
Periodicity: NSF charges apply once a monthly payment from a borrower Customer does not go through.
Included in APR calculation: No
Multiple fees allowed: Yes
Applicable in loan restructuring: Yes
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The origination fee is a one-time fee charged at the inception of the loan to cover the costs of processing the loan application and initiating the loan. This fee is included in the first installment.
For a $15,000 personal loan with a 3% origination fee, the Customer would be required to pay $450 as the origination fee along with the first installment.
Periodicity: A one-time fee applied to loans to cover the price of origination.
Included in APR calculation: Yes
Multiple fees allowed: Yes
Applicable in loan restructuring: Yes
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Past due interest is the additional interest charged on overdue loan payments. This fee accrues daily/ weekly/monthly/ yearly (subject to the settings) as a percentage based on the outstanding principal or total debt and is intended to compensate the lender Lender for the delay in receiving scheduled payments.
For example, if a borrower’s Customer’s $1,000 payment is 10 days late, and the past due interest rate is 0.05% per day, the borrower Customer would incur an additional $5 in interest (0.05% of $1,000 * 10 days).
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The payment holiday interest fee is an additional charge applied when a payment holiday is granted. During a payment holiday, the regular loan payments are paused, but interest continues to accrue. The additiona additional interest can be calculated daily, weekly, monthly, or yearly, based on the commission settings.
For instance, if a borrower Customer takes a payment holiday of one month on a loan with a principal balance of $10,000 and the daily interest rate is 0.05%, the interest accrued during the holiday period would be $150 (0.05% of $10,000 * 30 days).
Periodicity: Applied when as long a Payment holiday is applied.
Included in APR calculation: No
Multiple fees allowed: Yes
Applicable in loan restructuring: Yes
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The payoff fee is a one-time fee charged when a borrower Customer repays the loan in full before the scheduled end date. This fee can be a fixed amount or a percentage of the remaining balance and compensates the lender Lender for the loss of expected interest. It will be applied along with the sum of all fees that are assigned an Event Type 'On payoff' in the Credit Product.
For example, if a borrower Customer decides to pay off the remaining $5,000 balance of a loan early and the payoff fee is 2%, the borrower Customer would need to pay an additional $100.
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The pre-approval fee is charged to the borrower Customer before the loan application is processed and approved. This fee covers the initial evaluation and administrative costs associated with the loan application process.
A ‘zero'-installment will be added to the schedule.
For example, the lender Lender might charge a $150 pre-approval fee to cover the costs of credit checks and preliminary paperwork and won’t proceed with the application until the payment has been performed.
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The pre-disbursement fee is a fee charged once the loan is approved but before the funds are disbursed. This fee must be paid by the borrower Customer to activate the loan disbursement process.
A ‘zero'-installment will be added to the schedule.
For example, if a loan of $20,000 is approved and a pre-disbursement fee of $100 is required, the borrower Customer must pay this fee before receiving the loan amount.
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Field name | Parameters | Description |
|---|---|---|
Name | Pre-disbursement fee | Full fee name |
Calculation basis | Loan amount | The fee base if the fee is set as a percent or rate. If a fee value is "Amount", the calculation basis is unavailable. |
Fee value |
| This value is used as the Commission Rate for all loans created using this Credit Product. |
Use variable fee value |
| Allows different loans based on this credit product to have different fee values within the available range (Min value, Max value). The fee value is used as the default for every loan created by a borrowerCustomer. |
Who can edit the fee:
| If "Use variable fee value" is enabled, it is possible to choose who will be permitted to edit the fee value. |
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The repayment fee is charged each time a payment is made towards the loan. This fee can be a fixed amount or a percentage of the repayment amount and is deducted from the payment received before applying the remainder to the loan balance.
For example, if a borrower Customer makes a $500 repayment and the repayment fee is 2%, $10 will be deducted as the fee, and $490 will be applied to the loan balance.
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The sales tax is applied as a percentage of the paid principal and can be set as a constant value or within predefined fee ranges. This fee is used to calculate the amount of tax based on the principal portion of the loan repayment.
The specified amount is counted towards the loan repayment with other fees added to it (including the Repayment Fee) and when the Sales Tax fee is deducted from the specified amount, the remainder is counted towards loan repayment.
Let's consider a borrower Customer who has a loan with the following details:
Principal Amount: $10,000
Monthly Payment (Principal portion): $500
Sales Tax Rate: 8% = $500×0.08 = $40
If the borrower Customer makes a payment of $540, the $500 is applied towards the principal, and $40 is added as the sales tax, making the total payment $540.
Field name | Parameters | Description |
|---|---|---|
Name | Sales tax | Full fee name |
Calculation basis | Paid principal | Define the fee base if the fee is set as a percent or rate. If a fee value is "Amount", the calculation basis is unavailable. |
Fee value |
| This value is used as the Commission Rate for all loans created using this Credit Product |
Use variable fee value |
| Allows different loans based on this credit product to have different fee values within the available range (Min value, Max value). The fee value is used as the default for every loan created by a borrowerCustomer. |
Who can edit the fee:
| If "Use variable fee value" is enabled, it is possible to choose who will be permitted to edit the fee value. | |
Loan phase |
| Define the loan phase(s) applicable if Grace Period is defined for the Credit Product. |
Add fee cap | Who can edit the fee:
| If "add fee cap" is enabled, it is possible to choose who will be permitted to edit the fee value. |
Value type - Amount(by default) Value - $ | Fill in the value. |
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Payoff, Repayment, and Sales Tax fees are always paid as a matter of priority regardless of their place in the list. |
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When multiple fees with a calculation basis of "Paid Principal" are added to the credit product, these fees are accrued sequentially according to their 'Accrual Priority.' This means the installment payment amount for the second fee includes the already accrued amount from the first fee. |