Fees are charges assessed on a line of credit or loan to cover various costs, penalties, or services associated with the financial product.
These can include recurring fees (e.g., monthly or annual maintenance fees), penalty fees (e.g., late payment fees), and one-time or manual fees (e.g., processing or manual service charges). Fees are typically defined by policies and can be automatically applied based on account, line or loan activity or manually added by lenders.
They play a critical role in revenue generation for lenders and incentivize borrowers to adhere to agreed-upon terms. In our system, fees are configurable, trackable, and integrated into the overall financial lifecycle of a line or loan, ensuring transparency and compliance.
Fee Types
| Value | Description |
|---|---|
| LATE FEE | A fee imposed when a payment is not made by the graced due date, encouraging timely repayments. |
| MANUAL FEE | A one-time fee manually assessed by the lender for specific services, adjustments, or exceptions. |
| MONTHLY FEE | A monthly fee applied to cover administrative or maintenance costs associated with an account or loan. |
| ANNUAL FEE | An annual fee assessed for the continued use or servicing of a financial product. |
| RECURRING FEE | A fee charged at regular intervals (e.g., monthly or quarterly) for maintaining an account, line of credit, or loan. |
| RETURN CHECK FEE | A penalty fee charged when a payment check is returned due to insufficient funds or other issues. |