LendingTerms

Describes the period, interest and repayment configuration for a lending contract.

Field	Data Type	Description
period	string	Required Overall duration of a lending contract. For example, 1 month or 1 year Read-write
interest	object ( InterestSettings )	Required Interest settings. Read-write
fees	object ( FeeSettings ) [] | null	Required Lending fees settings. Read-write
penalty	object ( PenaltySettings ) | null	Required Penalty settings for installments in arrears. Read-write

InterestSettings

Describes the duration, interest and repayment configuration for a lending contract.

All rates are annual and are defined as ratios not percentages.

Field	Data Type	Description
calculationMethod	string ( "flat", "reducing_balance" )	Required Interest calculation method.
compoundingPeriod	string ( Time period )	Required Interest compounding period. The period of time for which interest is calculated on the current principal. It must be less than or equal to the overall lending term period. The compounding period also defines both the number of repayments to be made and the amortization schedule for a loan. For example, for a 1 month loan contract, if the compounding period is 1 week, then interest is calculated every week for the 4 weeks of the loan duration and there will be 4 repayments made every week. For example, 1 week, 1 month or 1 year.
baseRate	number	Required This is the minimum effective annual interest rate that can be applied for any contract without accounting for the risk of default or additional service charges. The base rate is usually set in line with a widely accepted benchmark within the lending context. For instance, the base lending rate set by national central banks. It is expressed as a positive ratio. For example, 14% would be expressed as 0.14.
riskPremiumRate	number	Required This is a variable interest rate set in excess of the base rate to account for the risk of default. The risk premium is usually set to 0 when defining products and can later be dynamically adjusted when setting up product offer configuration rules in the lending app policy. It is expressed as a positive ratio. For example, 4% would be expressed as 0.04. Defaults to 0.
waiverRate	number	Required This is the ratio of a lending contract's nominal interest rate (baseRate + riskPremiumRate), that should be wavered. Defaults to 0.
maxAPR	number	Required The maximum annual percentage rate (APR) allowed for any contract. If a contract were calculated to have an APR above the set maximum, then it would be lowered to be equal to the maximum by default. This field is useful as a control measure in jurisdictions with lending rate caps. Defaults to the -1 which means no maximum rate is effected.
maxAER	number	Required The maximum annual equivalent rate (AER) allowed for any contract. If a contract were calculated to have an AER above the set maximum, then it would be lowered to be equal to the maximum by default. Defaults to the -1 which means no maximum rate is effected.

FeeSettings

Describes settings for a lending fee.

Field	Data Type	Description
kind	string ( LendingFeeType )	Required Fee kind.
value	number ( Money format )	Required A value used to calculate the fee amount using the fee calculation method.
displayName	string	Required Fee display name.
calculationMethod	string ( "flat", "principal_amount_ratio" )	Required Fee calculation method. The values are outlined below. flat: The fee amount is equal to the fee value set. principal_amount_ratio: The fee amount is a ratio of the contract principal amount and is derived by multiplying the fee value by the contract principal amount.
installmentTarget	string ( "first_in_sequence", "last_in_sequence", "all_in_sequence", "all_in_sequence_split", "in_progress" ) | null	Required Specifies which loan installment(s) to allocate a fee amount to. The values are outlined below. first_in_sequence: The fee amount is allocated to the first loan installment. last_in_sequence: The fee amount is allocated to the last loan installment. all_in_sequence: The fee amount is allocated to each loan installments as is. all_in_sequence_split: The fee amount is first divided by the number of installments and then allocated to each loan installments. in_progress: The fee amount is allocated to the currently active loan installment.
description	string | null	Required The fee description.
required	boolean	Required A flag to denote whether the fee is required. A required fee is automatically applied to all loan accounts when applicable. Defaults to true.
calculateInAdvance	boolean	Required A flag to denote whether the fee should be calculated before the loan account is created. Defaults to false.

PenaltySettings

Describes settings for a lending penalty for an installment in arrears.

Field	Data Type	Description
calculationMethod	string ( "overdue_principal", "overdue_principal_and_interest", "outstanding_principal" )	Required Penalty calculation method. The values are outlined below. overdue_principal: The penalty is applied on the overdue principal amount. penaltyAmount = penaltyRate * overduePrincipal * noOfDaysLate overdue_principal_and_interest: The penalty is applied on the overdue principal amount and overdue interest amount. penaltyAmount = penaltyRate * (overduePrincipal + overdueInterest) * noOfDaysLate outstanding_principal: The penalty is applied on the overdue principal amount and overdue interest amount. penaltyAmount = penaltyRate * (overduePrincipal + overdueInterest) * noOfDaysLate
gracePeriod	string	Required The maximum period of time a repayment can be overdue but the penalty is not applied. For example, 2 days.
rate	number	Required The rate at which the penalty is charged expressed as a ratio. For example 0.02 is a penalty of 2%.

LendingFeeType

A list of all valid lending fee types.

Type	Description
capitalized_disbursement_fee	The fee amount is included within the loan principal at disbursement.collection_fee
collection_fee	A fee amount that is included in advance within each loan installment in the loan schedule.
deducted_disbursement_fee	The fee amount is deducted from the loan principal at disbursement.
late_payment_fee	A fee amount that is applied whenever an installment payment is late.
manual_fee	A custom fee amount that is applied whenever required.
upfront_disbursement_fee	An fee amount that is applied when the loan is disbursed and is paid in one of the installments.