Fee and cost structures

Introduction

On the configuration you will be able to define fees which can be charged to the loan when performing several actions in the system, when configured on the product template by setting a fee rate list on the template.

Fee cost items

First you will define a cost item, creating a new template: ‘Fee cost items’ > ‘Create fee cost item’

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This item will be part of the rate list, which can be set on the template.

Name
The name of the cost item, this name will be shown when selecting an item on the fee rate list.

Type
The type of the cost item, the following types are supported:

  • General cost, used for costs which can be charged when performing several actions in the system other than extra repayment
  • Pay up cost, when a fee must be charged when performing an extra repayment, the system looks up a cost item with this type from the rate lists. There can be only on a rate list.

Fee rate lists

Creating a new rate lists: ‘Fee rate lists’ > ‘Create fee rate list’

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Name
The name of the fee rate list, this name will be shown when selecting a fee rate list on the template.

Type
The type of the fee rate list, the following types are supported:

  • General, if the fee is applicable for other actions, then repayments performed on the loan;

  • Payments, if the fee is applicable for repayments on the loan, these costs are added to the cashflow when notification (like the expected payment event) are sent.

  • Currency*
    The applicable currency of fee can be selected.

Add fee rate
Ability to define one or multiple fees which are set on the rate list

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Fee rate type
In case of the fee rate list type general, an action type can be selected, the following types are supported:

  • Settle loan, these fees can be selected and set when creating a loan. When set they will be charged automatically when a loan is disbursed.
  • Collect, the fees can be manual selected in the collection process, when exposed.
  • Change of terms, the fees can be selected when changing terms of the loan, like shorten or extend, see change payment plan/ change spread, when exposed.
  • Installment, the fees which can be selected when doing a manual repayment, when exposed.
  • Free cost, costs which are not specific linked to an action in the system, when using the adding costs action on a loan.
  • Commission, a onetime fee on top of the principal, can only be an amount. Specific created for pre-computed loans.
  • Precomputed interest, a fee percentage of the principal and the commission, can only be a percentage. Specific created for pre-computed loans.

For each rate type, you can only have one unique cost item.

When commission and the precomputed interest types are part the same rate list and set on the loan template, then the loan created using this template will become a precomputed loan with an irregular pre-computed repayment scheme.

Fee cost item
Any pre-created fee cost item needs to be selected.

Percentage / Amount
A percentage or amount can be set, depending on the selected type.


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