Loan Fee
Last updated
Udara360 User Guide
Last updated
The Loan Fee page enables you to establish and oversee fees linked to loan accounts. These fees can be based on a flat rate, a percentage of the loan amount, or specific criteria such as payment frequency. The Loan Fee page offers tools for setting up, activating, deactivating, and monitoring these fees across various loan products.
Log into the application using your credentials.
From the dashboard, navigate to Accounts in the side menu.
Select Fees from the dropdown list.
Select Loan Fee from the Fees dropdown list.
To create a new Loan fee:
Click on the “Add” button at the top of the page.
Fill in the Create New Loan Fee form fields:
Fee Name: Enter a descriptive name for the fee (e.g. Processing Fee, Insurance Fee, Application Fee).
Fee Computational Model: Select the method for calculating the fee. Common computational models include:
Flat: A fixed amount charged irrespective of the loan principal size.
Percentage: A percentage-based fee calculated on the loan principal or outstanding balance.
Amount/Percentage: Enter the actual loan fee amount or Loan fee rate.
Fee Charge Cycle: Define how often the fee should be applied. Examples include:
One-off: Charged only once during loan disbursement.
Weekly: Charged on recurring weekly basis.
Monthly: Charged on a recurring monthly basis.
Quarterly: Charged on a recurring quarterly basis.
And Custom: Charged in line with the principal repayment frequency.
Income/Payable GL: Select the appropriate General Ledger (GL) account which could either be an income account or a liability account where the fee will be recorded. This ensures proper accounting of the fee revenue or liability.
Apply VAT?: Toggle this option to see if VAT should be applied to the fee or not.
Once you’ve filled in all the necessary fields, click “Save” to apply the new Loan fee.
To view an existing Loan fee:
In the Actions column, click the three vertical dots (⋮) next to the Loan fee you want to view.
Select View from the dropdown menu.
This will display the full details of the created Loan Fee.
To modify an existing Loan Fee:
In the Actions column, click the three vertical dots (⋮) next to the Loan fee you wish to modify.
Select Modify from the dropdown menu.
Update the necessary Loan Fee details.
Click Update to save and apply the changes.
Confirm the action by selecting “Yes, I want to proceed.”
To activate/deactivate an existing Loan fee:
In the Actions column, click the three vertical dots (⋮) next to the Loan fee you wish to deactivate.
Select Deactivate from the dropdown menu.
Confirm the action by selecting “Yes, I want to proceed.”
