Overview

This screen is where you configure the specific fees and interest parameters for the new loan. The options and calculations are based on the loan product selected in the first step and may vary based on your country's regulations and your user permissions.

Navigation

This screen is the third step in the New Loan wizard.

1. Navigate to Client Administration > Search for Existing Client.
2. Select the desired client and click New Loan.
3. Complete the first two screens and click Next.

Field Descriptions

The fields are divided into two main categories: Fees and Interest.

FEES

• Initiation Fee: (RSA Only) The fee charged for creating the loan.

  • The system calculates this fee based on the parameters of the selected loan product when you click Next.
  • If you have the necessary security permissions, you can manually enter or change this value.
  • The amount you enter cannot be higher than the maximum or lower than the minimum initiation fee defined for the loan product.

• Monthly Service Fee: (RSA Only) The recurring monthly fee for servicing the loan.

  • This value defaults to the amount set on the loan product.
  • If you have the necessary security permissions, you can change this value within the minimum and maximum limits defined for the loan product.

• Charge First Monthly Service Fee: (RSA Only) Tick this box to apply the service fee in the first month of the loan term. If unticked, the first service fee will only be charged from the second month.

• Charge Pro Rata First Monthly Service Fee: Tick this box to charge a pro-rata (proportional) portion of the service fee for the first month, based on the loan's start date.

• Charge Pro Rata Final Monthly Service Fee: Tick this box to charge a pro-rata (proportional) portion of the service fee for the final month of the loan term.

• Administration Fee: (Not for RSA) Enter the amount for any applicable administration fees.

• Charge Interest on Administration Fee: (Not for RSA) Tick this box if interest should be calculated on the principal debt plus the administration fee.

• Preparation of Business Plan Fee: (Not for RSA) Enter the amount for any fees related to preparing a business plan.

• Charge Interest on Preparation of Business Plan Fee: (Not for RSA) Tick this box if interest should be calculated on the principal debt plus the business plan fee.

INTEREST

• Interest Rate: The interest rate at which the money is borrowed. The calculation method (e.g., Compound, Simple, Short-term) is determined by the selected loan product.

• Penalty Interest Rate: The interest rate applied to the loan's outstanding balance if it goes into default.

• Profit Rate only: When selected, penalty interest will only be calculated from the instalment due date plus the defined grace period, especially relevant for rescheduled instalments.

• Interest Factor: (RSA Only) This value is configured on the loan product setup. Please refer to the loan product configuration guide for a detailed explanation.

• Interest Percentage to Add: (RSA Only) This value is configured on the loan product setup. Please refer to the loan product configuration guide for a detailed explanation.

• Recalculate Loan on Repo Rate Change: (RSA Only) If enabled on the loan product, the system will automatically recalculate the loan terms if there is a change in the SARB repo rate. This applies to specific RSA ICM loan types that are dependent on a reference rate.

Available Actions (Buttons)

• Next: Proceeds to the next step in the New Loan wizard. This action also triggers the calculation and validation of fee values.
• Back: Returns to the previous page.
• Cancel: Exits the New Loan wizard without creating a loan and returns to the client search page.