1. Loan Collection Setup Guide
  2. Product
  3. Contract
  4. Fees

4.5.4 Fees

Any fees that are defined in the contract are set up on the Fees sub screen. The system currently supports the following contract fees:
  • Late charges
  • Non sufficient funds
  • Extensions
  • Prepayment penalties
  • Delay Fee
  • ACH Fee
The Fees sub screen allows you to define those fees whose value and method of calculation are set at the time of the Loan. As these amounts cannot be changed after the product is booked and funded, you should only set up fees here that will not change over the life of the Loan. Individual contract fee types may be defined multiple times in order to create graduated fees.

Note:

Certain fees, like late fees, can be set up at contract, as well as state level. In such cases, the contract fee, if present, is used first.
To set up the Fees
  1. Click Setup > Setup > Administration > User > Products > Contract > Loan > Fees.
  2. In the Fees section, perform any of the Basic Operations mentioned in Navigation chapter.
    A brief description of the fields is given below:

    Table 4-19 Contract Fees

    Field Do this
    Type Select the fee type from the drop-down list.
    Txn Amt From Specify the lowest transaction amount or balance amount against which this contract fee definition may be applied.
    Amount Financed From

    Specify the minimum value of amount financed on the contract.

    Note: This is the Contracted loan amount during origination and would always be the Amount Financed on contract even if principal addition is done through a transaction in servicing.
    Method Select the method of calculating the fee to be assessed from the dropdown list.
    Frequency Select the frequency of calculating the fee to be assessed from the drop-down list.
    Threshold Amt

    This field is enabled only if the Contract Fee type is either CYCLE BASED COLLECTION LATE FEE or CYCLE BASED LATE FEE.

    Specify the threshold amount which is less than or equal to minimum fee amount to be assessed. Based on this amount, system calculates and posts the Cycle Based Collection Late Fee or Cycle Based Late Fee based on the account.

    If calculated fee amount is less than threshold amount, fee is posted with transaction amount = 0.

    If calculated fee amount is greater or equal to threshold amount, fee is posted based on existing min amt and max amt comparing logic.
    Min Amt Specify the minimum fee amount to be assessed.
    Max Amt Specify the maximum fee amount to be assessed. If you selected FLAT in the Method field, then this field is not used and is normally populated as $0.00.
    Percent Specify the fee percentage of the outstanding transaction amount to be assessed as a fee. This amount will be adjusted to fall within the Min Amount and the Max Amount.
    Enabled Check this box to create the selected contract fee when the account is booked and funded.
  3. Perform any of the Basic Actions mentioned in Navigation chapter.

Parent topic: Contract