Cancellation, termination and fees

Cancellation

An instalment loan can be cancelled at any time. Upon cancellation, the outstanding principal and any interest owed on overdue repayment amounts will be transferred to the customer’s revolving credit account.

If configured as part of the finance option on which the instalment loan is based, cancellation fees will also be applied. These fees are transferred to the customer’s revolving credit account as a transaction_type_id = 9 (Fee - Internal).

The status of the instalment loan will be updated to Closed.

Termination

Termination occurs automatically when a defined number of repayment cycles become overdue (as defined on the finance option). At this point, the outstanding principal and any interest owed on overdue repayment amounts are transferred to the customer’s revolving credit account.

If termination fees are configured as part of the finance option on which the instalment loan is based, these fees will also be applied. Like cancellation fees, they will be transferred to the customer’s revolving credit account as a transaction_type_id = 9 (Fee - Internal).

The status of the instalment loan will be updated to Closed.

Late payment

If a repayment cycle is not fully paid by the repayment due date, a late payment fee may be applied. When late payment fees are configured as part of the finance option on which the instalment loan is based, they will be assessed accordingly.

These fees, like cancellation fees, will be transferred to the customer’s revolving credit account as a transaction_type_id = 9 (Fee - Internal).