Fee Apportioning

Fee apportioning means collection of fees at a frequency specified in the fee definition. With CL Loan you can apportion fees in the following two ways:

• Method 1: The total amount of fee to be collected is calculated using one of the supported fee calculation methods, and it is apportioned uniformly. The frequency of apportioning is the same as the loan payment frequency. For example, if a fee of 120 is to be collected over a loan with 10 terms, then an amount of 12 is apportioned from each term.

• Method 2: A fixed amount of fee is apportioned, at the defined frequency. This frequency can be different from the loan frequency.

Configuring a fee for apportioning

Perform the following steps to define a fee for apportioning.

1. Define a fee.

   Note:

   To learn about defining a fee, refer to Define a Fee. While defining a fee for apportioning, make the following selections:

   • In the Time of Charge list, select Periodic Fees.

   • To apportion a fee when the amount is known beforehand, select Total Amount, in the Periodic Fee Amount Type list.

   • To apportion a fee for a fixed amount per period, select Per Period Amount, in the Periodic Fee Amount Type list.

   • To include the fee in the bills, select the Include in Schedules check box.

2. Define a fee set for apportioning and associate the defined fee to this fee set.Note: To learn about defining a fee set and associating a fee with it, refer to the Define a Fee Set section.

3. Create a loan with the fee set defined for apportioning.

4. Create a contract and associate it with the loan product created in the previous step.

   Note:

   The amount of the fee to be apportioned is derived from the product setup. The periodic fee that you associated with the product appears under the Period Fee section of the contract. Only one periodic fee is supported per contract.

5. Provide the start date from when the fee should be charged and the frequency at which it should be charged. The fee to be apportioned is listed in the schedules and the bills.

Example for method1

Let's assume there is a loan with the following details:

• Loan Amount = 500,000

• Fee Calculation Method = Amount calculated as % of loan amount

• Amount = 5 (percentage of loan amount that derives the fee amount)

• Total fee to be apportioned = 500000 * 5% = 25000

• Payment Frequency = Monthly.

• Fee Payment Frequency = Monthly

The schedules are listed with the due fee for each term, as shown in the following image.

Example for method 2

Let's assume there is a loan with the following details:

• Loan Amount = 10,000

• Interest rate = 0

• Period per amount = 50

• Loan Payment Frequency = Monthly

• Loan payment start date =1st May 2014

• Fee Payment frequency = Semi-monthly

• Fee payment start date =17th May 2014

The schedules are listed with the due fee for each term, as shown in the following image.

Understanding the example for method 2

• Due Amount is inclusive of the fee amount.

• Fee start date is later than the loan payment start date so the first bill does not include any fee.

• The second bill includes a fee of 50, due between May 17th and June 1st (fee start date is 17th May and loan payment start date is May 1st).

• The third bill includes a fee of (50 + 50), due between June 1st and July 1st (fee frequency is semi-monthly)