Costs of borrowing

1. Administration and documentation fee

$100 for each loan regardless of the loan type eg Home loan or vehicle loan etc. The administration and document fee is added to the loan at the date of the advanced.

 

2. Interest calculation

Interest, at the Ordinary Interest Rate, shall be calculated on the amount of the Loan outstanding at the end of each day.  Interest shall accrue from day to day from the Date of Advance until the Loan and any other amounts payable under this Agreement are paid in full.


Interest shall be charged at monthly intervals on the Loan on dates selected by the Lender regardless of the timing of the payments required.


The current ordinary interest rates are between 3.2% and 9.2% per annum.


Home loans are between 2.99% and 6.2%, factors that determine the rate is whether the loan is a first or second mortgage. Also as our focus is on helping out physically disabled persons who are finding it difficult to access funding. As a general rule, where other avenues of funding, such as banks, are not available or affordable.


If you do have access to other funding, we may still be able to help you, but you may not be eligible for our lowest interest rate.


Car loans are between 6.2% and 9.2%


Unsecured loans are 9.2%

 

3. Default interest rate calculation

If the Borrower does not make any payment on the date on which the payment was due then interest shall be payable Upon Demand and may be charged at the Default Interest Rate on a daily basis on the outstanding balance of the Loan and any other amount payable under this Agreement which remains unpaid from the date of the default in payment until the overdue payment has been paid in full.


Any default interest which is not paid when due may be added to the overdue sum by the Lender and shall itself bear interest at the Default Interest Rate once it has been debited.


Default interest rate is the ordinary interest rate of the loan in default plus 5% per annum
 

4. Other costs

All fees, expenses and liabilities at any time incurred or charged by the Lender or by the Lender’s agents (Third party) or employees in connection with the processing, variation, release or administration of the Loan, or in the course of protecting or enforcing or attempting to protect or enforce the Lender’s rights under this Agreement must be paid by the Borrower to the Lender Upon Demand.


By way of example only, fees and expenses may include:


(a) Administrative time and costs including the time of the Lender’s staff or agents, whose time shall be charged at reasonable rates; or

(b) Legal fees and expenses on a solicitor client basis.

 

For example

  • Legal cost of preparing a General Security Agreement for Personal Property Security to be registered
  • Personal Property Security Register Fee
  • Legal costs associated with preparing Loan Agreement and Mortgages relating to an approved loan
  • Costs relating to debt recovery

 

See also

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General loan terms

 

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