3. Costs
Step 3: Costs
Here you would configure the costs of the credit type by setting up the Initiation Fee, Service Fee and Interest amounts.
1. Initiation Fee
A table displaying the allowable charges is provided for your reference.
As a user, you have the flexibility to input an initiation percentage value. Please be advised that the National Credit Regulator (NCR) has set a maximum limit of 15 percent for this value.
Furthermore, there is an option to apply interest on the deferred initiation fee. This implies that the interest will be computed based on the entire payable amount, which includes the initiation fee. The toggle for this feature can be enabled as needed.
As a user, you have the flexibility to input an initiation percentage value. Please be advised that the National Credit Regulator (NCR) has set a maximum limit of 15 percent for this value.
Furthermore, there is an option to apply interest on the deferred initiation fee. This implies that the interest will be computed based on the entire payable amount, which includes the initiation fee. The toggle for this feature can be enabled as needed.
2. Service Fee
The Service Fee is determined proportionally (Pro-Rata), with a maximum of R60.00 per installment according to NCR regulations.
The service fee maximum amount can be set for the first instalment, meaning the calculated service fee amount will not exceed this value for the first instalment only.
By utilizing the calendar month toggle, a Service Fee can be charged for each month the loan remains active.
To illustrate, suppose a loan agreement is initiated in April, and there are three installments with the first one due on the first day of April. In this scenario, the client will incur four Service Fees.
Interest Rates
The interest on a loan is levied either as first annual monthly interest at 5% or monthly interest at 3%, in accordance with the specified percentage rate.
A first annual loan pertains to the initial loan that a client procures from your business within a calendar year. Therefore, even if a client borrows from your business on a monthly basis, they will be subject to the first annual monthly interest rate for the first loan taken each year.
Set Maximum Fee
Selecting this option will replace all fees with the maximum permissible rates according to the NCR and the given credit type.
Step 4: Permissions
Last updated