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:
First define a Fee in the Servicing Configuration.
Create a new Fee Set in the Servicing Configuration.
Then link the Fee to the Fee Set.
For more information on defining a Fee and a Fee Set, see the Fees Management > Define a Fee and Fees Management > Define a Fee Set section of this guide.