Define the Protect Fee Split

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Define the Protect Fee Split

CL Loan enables you to fund a loan via a single or multiple investors. In such case, you can opt to pay a part of the fee paid by the borrower to avail the Protect feature on the loan contract, to the investors. The protect fee split allows you to define the share and stage of the loan at which the investors may be paid. If there are multiple investors, the investor share is divided among them, as per their investment share.

Prerequisites

The following are the prerequisites to defining additional loan product details:

  • The lending product is created.

  • The Protect Fee option is enabled in the lending product.

Steps

Perform the following steps to define the protect fee split 

  1. If you are not already in the lending product's page, navigate to it from Service Configuration, Product, Product Management, View/Edit Lending Products. Click on the required product to open the lending product's page. 

  2. Scroll down to the Protect Fee Split section. 

  3. In the Protect Fee Split section:

    1. Click New Protect Fee Split. The Protect Fee Split Edit page is displayed.

    2. Specify a Protect Fee Split Name.

    3. The Lending Product is displayed by default. This field is editable, to allow you to choose the product in case you navigate to this page from the contract creation page.

    4. Specify the Split Share percentage, which is paid to the investor, if any, on the loan contract.

    5. Provide a brief Description of the fee split.

    6. Select the Paid By Investor checkbox if the investor pays any fee to the lender for managing the protect enabled loan.

    7. Select the Part of Disbursal checkbox if the protect fee is to be collected at the time of loan disbursement.

    8. Select the Is Investor Rebated at WriteOff checkbox if the fee is returned to the investor on pro rata basis, in case the loan is written off.

    9. Select the  Is Investor Rebated on Refinance at checkbox if the fee is returned to the investor on pro rata basis, in case the loan is refinanced.

    10. Select the  Is Investor Rebated at Payoff checkbox if the fee is returned to the investor on pro rata basis, in case the borrower pays off the loan early.

    11. Click Save.