Apply Fees to a Loan Contract

There are different types of fees that are applied on a contract after its approval. 

The examples of fees that are applied on a contract after its approval and disbursal are:

• Periodic Fees - Periodic Fees are posted to the customer's loan accounts on a routine basis (typically, weekly, monthly, bi-weekly, semi-monthly, monthly, bi-monthly, quarterly, semi-annually, annually, or on a single payment basis). This fee is applied for specific dates.
• Late Fees - Late Fees is a charge applied on late receipt of payment.
• Pre-paid Fees  - Pre-Paid Fees are fees charged to the customer before disbursement. 
• Prepayment Penalty Fee - Prepayment Penalty Fee is the fee that a lender may assess when a borrower repays the loan before the scheduled maturity date or repays more than due.

Setting up fees and fee sets is a prerequisite to creating a lending product in CL Loan.

To set up Fees and Fee Sets or to add a Fee to a Lending Product or a Contract, you must make sure that you have performed the following steps:

1. First define a Fee in the Servicing Configuration.
2. Create a new Fee Set in the Servicing Configuration.
3. Then link the Fee to the Fee Set.