Loan Fee Distribution Based On Loan Duration

We have enhanced the logic for loan fee calculation and distribution in the loan application process. Previously, loan fees were either applied upfront or added as a lump sum to a single installment. The updated logic introduces improved methods for calculating and distributing fees, ensuring greater accuracy and flexibility during loan processing.

Now:

• The applicable loan fee will be calculated based on the loan duration,
• And then evenly distributed across the loan tenure,
• So that the fee is paid in portions along with each installment.

Key Benefits:

• Improves affordability by spreading out fee payments.
• Enhances repayment flexibility for borrowers.
• Ensures accurate and duration-sensitive fee calculations, especially for long-term loans.
• Streamlines the posting of fees into installment schedules for easy tracking and accounting.

Impact:
This enhancement creates a more borrower-friendly repayment model and improves financial clarity for both SACCOs/MFIs and their members.