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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.
For the sake of the table:
APR: Included into APR calculation
Dupl: You can create several fees based on this template
RS: Can be used in the products when restructuring a loan
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 to 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. | + | - | - |
Late fee | Penalty for late payments. Charged once payment is delayed by a the specified number of days.Once - as per the late payment schedule | Each time a payment is late as defined. | - | + | + |
Leasing payment | Applied and must be defined when the loan type is Leasing | Each payment transaction | - | + | + |
Manual | Ad-hoc charge added by the Lender | Applied to the current installment on the day it is created | - | + | + |
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. | - | + | + |
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) | - | + | - |
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. | - | - | + |
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The late fee is a penalty charged when a 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 Customers to make timely payments and compensates the Lender for the inconvenience and potential risk of late payments. The fee is charged each time an installment becomes the defined number of days late.
For example, If a Customer misses a monthly payment of $500 and the late fee is set at $25 or 5% of the overdue amount, the Customer would incur an additional charge of $25 or $25 (5% of $500). If the Customer fails to pay the next installment, the fee will be applied again in the same manner.
Periodicity: Late Fees are applied to loan installment as soon as this installment's DPD value becomes equal to the DPD value specified in a late fee rule.
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 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 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 Customer decides to pay off the remaining $5,000 balance of a loan early and the payoff fee is 2%, the Customer would need to pay an additional $100.
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