Tiered Fee Configuration

Overview

  • Purpose: The Tiered Fee Configuration feature allows for implementing different loan application fees based on the size of the loan.
  • Benefit: It provides greater flexibility, customization in fee management, and transparency, empowering financial institutions to better cater to borrowers’ needs.

Steps

  1. Sign in to the Admin Panel.
  2. Navigate to the Settings menu and choose Policies from the dropdown list.
  3. Under Policies, select Credit Product Policy to adjust credit-related settings.
  4. Locate the Loan Charges section and enable the Range option for tiered configuration.
  5. Click the + icon to add fee ranges.
  6. Define and assign fees to each range according to your preferences.
Click into “Range” option to attach the different fees required for a specific range of amount(s)

Benefits

  1. Customizable Fee Ranges: Attach unique fees to specific loan amounts by configuring ranges.
  2. Equity: Ensure borrowers pay fees proportional to their loan size, creating a fair system.
  3. Market Appeal: Strengthen competitive positioning by accommodating different borrowing capacities.
  4. Enhanced Trust: Provide borrowers with clear, upfront information about fees.

This enhancement can significantly improve the loan application process and borrower satisfaction.

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