How are early repayment (payout) fees calculated?

The method for calculating an early loan payout differs for Commercial and Consumer products.

Commercial Lending:

• Payout Calculation: The payout amount includes the remaining principal balance plus accrued interest up to the settlement date.

• Interest Adjustment: As the loan is terminating early, the lender removes the future interest it would have earned. This amount of future interest is recalculated to its present value using a discount rate and is deducted from the total payout figure.

• Fees: No separate early termination or exit fee is charged. The interest adjustment represents the total cost for early settlement.

Consumer Lending:

• Payout Calculation: The payout amount is the current loan balance plus accrued interest calculated only up to the day the payout funds are received.

• Fees: The payout figure will also include the following mandatory fees:

  • Discharge Fee: $195

  • Early Payout Fee: $395