Regular Costs
Last updated
Last updated
Here you would configure the costs of the credit type by setting up the Initiation Fee, Service Fee and Interest amounts.
As a user, you can specify an initiation percentage value. Please note that the National Credit Regulator (NCR) has set a maximum limit of 15 percent for this value.
Additionally, there is an option to apply interest on the deferred initiation fee. When enabled, interest will be calculated based on the total payable amount, including the initiation fee. You can toggle this feature on or off as needed.
The Service Fee is calculated proportionally (Pro-Rata) and is capped at R60.00 per installment, in compliance with NCR regulations.
The maximum service fee can be applied to the first installment, ensuring that the fee does not exceed this amount only for the first installment.
By using the calendar month toggle, you can charge a Service Fee for each month the loan remains active.
Example: If a loan agreement begins in April with three installments, the client will incur four Service Fees, one for each month the loan remains active.
The interest rate on the loan is applied in one of two ways:
First Annual Interest: This is charged at 5% annually for the first loan taken by a client in a calendar year.
Monthly Interest: A rate of 3% is applied monthly.
Even if a client borrows from your business multiple times throughout the year, the first annual interest rate applies only to the first loan taken within the year.
When this option is selected, all fees are replaced with the maximum allowable rates set by the NCR and the specific credit type.
