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.

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

How to manage Fees

Settings → Loan settings → Credit products

In the Credit Product settings you can define commissions to be automatically accrued to the loans of the Credit Product

Open

Open

For each fee you will see a window with dedicated settings (as shown below).

Basic Settings

The settings of each specific fee are displayed below, however some of the common settings are:

• Name: the name used to display the fee it in the UI

• Calculation basis: the base used to calculate the fee if it is a percantage

• Use variable fee rate: if checked, enabled authorized users to change the fee value when the loan is created.

• Fee value: default, minimum and maximum values of variable fees or just the fee value (for non-variable)

Accrual Mode

When initial schedule is created, foreseen fees and payments are divided into some expected amounts. These amounts are accrued in compliance with their priority and the following modes.

1. Always in equal payment - the amount is accrued into the installment regardless of the equal payment limit (even if the installment payment will exceed the limit).
   Check the calculations based on the schedule below.
   
   

2. Within equal payment limit - the amount is accrued in such a manner that it is not less than required but when it is added the total installment amount doesn't exceed the equal payment limit.

3. Over equal payment - the amount is added to the installment above the equal payment limit.

4. Special - the amount is not added to the installment. It is kept in the buffer (special repayment step is used to make special payments).

5. Postponed - the amount is initially save in the buffer and added to the installment if the amount accrued is less than the equal payment limit. (to keep the logic, it is reasonable to set Postponed Fees at the end of the priority list).

Loan Phase

Defines if the fee shall be applied during the Grace Period (if Grace Period is defined for the Credit Product). In general, you can define the fees applied only during the Grace Period, only after the end of the Grace Period or during the whole loan life-cycle.

Payoff Settings

Define which part of the unpaid fee amount shall oblige in case of payoff.

• General: by date: For the amount accrued but unpaid on the date of the payoff

• General: future: For the amount currently scheduled but not yet accrued amount shall oblige in case of payoff.
  
  

Fee Types and Their Settings

Administration Fee

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 can maintain efficient processing and servicing of the loan throughout its term.

For instance, if a 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.

• Periodicity: Each installment

• Included into APR calculation: Yes

• You can create several fees based on this template: Yes

• Can be used in the products when restructuring a loan: Yes

Administration Fee Settings

The fee amount can be configured in the credit product settings and may be set as a fixed amount, a percentage of the loan amount, or a rate.

Disbursement Fee

The disbursement fee is charged each time funds are disbursed to the Customer. 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 Customer, in particular for multiple disbursements, this fee is applied every time, to every disbursement.

For example, if a Customer is approved for a loan of $10,000 and the disbursement fee is 2%, $200 will be deducted as the fee, and the 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

Disbursement Fee Settings

Down Payment

The down payment is a portion of the purchase price that the 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 Customer agrees to purchase an item for $20,000 and makes a down payment of $5,000, the loan amount would make $15,000.

A “zero”-installment is added to the schedule.

• Periodicity: One-time fees, when the payment transaction is done by the Customer before disbursement.

• Included in APR calculation: Yes

• Multiple fees allowed: No

• Applicable in loan restructuring: No

Down Payment Settings

Late Fee

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

Late Fee Settings

Leasing Payment 

The leasing payment is applicable when the loan type is designated as "Leasing." While it is generally expected that only one leasing payment is added to the credit product, multiple leasing payments can be configured if it aligns with your business requirements.

For example, if a company finances a piece of equipment through a leasing loan of $50,000, the leasing payment might be set at 2% of the loan amount, resulting in a $1,000 leasing payment. Alternatively, a fixed leasing payment of $1,500 might be applied regardless of the loan amount.

• Periodicity: For each payment transaction.

• Included in APR calculation: No

• Multiple fees allowed: Yes

• Applicable in loan restructuring: Yes

Leasing Payment Settings

Manual Fee

The manual fee is an ad-hoc charge that can be added by the Lender at any point in time. This fee is applied on the day it is created and is assigned to the current installment of the loan. It allows for flexibility in managing unexpected or additional costs that may arise during the loan term.

For example, if on the 10th day of the month the Customer incurs an additional service charge of $50, the Lender can add a manual fee of $50 to the current installment. If the current installment is due on the 15th of the month, the manual fee will be accrued on the 10th and expected to be paid on the 15th - as a part of the total amount due for that installment.

• Periodicity: When charged

• Included in APR calculation: No

• Multiple fees allowed: Yes

• Applicable in loan restructuring: Yes

Manual Fee Settings

Manual fee is always defined as an amount. The best practice is to make it a variable amount.

NSF

The NSF fee is applied when a Customer’s payment fails due to insufficient funds in their account. This fee compensates the Lender for the costs associated with handling the failed transaction and encourages 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 Customer’s monthly loan payment of $600 is returned due to non-sufficient funds, and the NSF fee is set at $35, the Customer would be charged this additional fee on top of the missed payment.

• Periodicity: NSF charges apply once a monthly payment from a Customer does not go through. 

• Included in APR calculation: No

• Multiple fees allowed: Yes

• Applicable in loan restructuring: Yes

NSF Settings

Origination Fee

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

Origination Fee Settings

Past Due Interest

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 for the delay in receiving scheduled payments.

For example, if a Customer’s $1,000 payment is 10 days late, and the past due interest rate is 0.05% per day, the Customer would incur an additional $5 in interest (0.05% of $1,000 * 10 days).

• 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

Past Due Interest Settings

Payment Holiday Interest Fee

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 additional interest can be calculated daily, weekly, monthly, or yearly, based on the commission settings.

For instance, if a 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 as long a Payment holiday is applied.

• Included in APR calculation: No

• Multiple fees allowed: Yes

• Applicable in loan restructuring: Yes

Payment Holiday Interest Fee Settings

Payoff Fee

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.

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.

• Periodicity: A one-time fee applied when the loan is paid off ahead of the schedule.

• Included in APR calculation: No

• Multiple fees allowed: Yes

• Applicable in loan restructuring: Yes

Payoff Fee Settings

Pre-Approval Fee

The pre-approval fee is charged to the 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 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.

• Periodicity: A one-time fee applied when the loan is paid off ahead of the schedule.

• Included in APR calculation: Yes

• Multiple fees allowed: No

• Applicable in loan restructuring: Yes

Pre-Approval Fee Settings

Pre-Disbursement Fee

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 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 Customer must pay this fee before receiving the loan amount.

• Periodicity: A one-time fee applied to loans that should be distributed while the loan has a status 'Pending initial payments' (Before disbursement).

• Included in APR calculation: No

• Multiple fees allowed: Yes

• Applicable in loan restructuring: No

Pre-Disbursement Fee Settings

Repayment Fee

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 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.

• Periodicity: For each payment transaction.

• Included in APR calculation: No

• Multiple fees allowed: Yes

• Applicable in loan restructuring: No

Repayment Fee Settings

Sales Tax

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 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 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.

How to manage repayment priority

After setting commissions accruals order can be changed. 

By clicking on the "Manage repayment priority" button, a popup will be opened. Here you can edit repayment priority.