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- Nov 13, 2013
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Hi everyone
Kindly assist me in the following:
I have a case where I am not sure how we(lender) should account for loan application and establishment fees on the following scenarios:
Scenario 1
The customer borrows R100 000
Application fees are 1%
Establishment fees are 1%
The customer does have the amount and pay it in cash to us(lender) to process the loan.
Scenario 2
The customer borrows R100 000
Application fees are 1%
Establishment fees are 1%
The customer does not have the amount to cater for the application fees and the establishment fees and as such, we have offered the customer an option to increase the loan value to R102 000, so that the R2 000 (being 1% application fees and 1% establishment fees) is taken by the customer as a loan .
Kindly assist me in the following:
I have a case where I am not sure how we(lender) should account for loan application and establishment fees on the following scenarios:
Scenario 1
The customer borrows R100 000
Application fees are 1%
Establishment fees are 1%
The customer does have the amount and pay it in cash to us(lender) to process the loan.
Scenario 2
The customer borrows R100 000
Application fees are 1%
Establishment fees are 1%
The customer does not have the amount to cater for the application fees and the establishment fees and as such, we have offered the customer an option to increase the loan value to R102 000, so that the R2 000 (being 1% application fees and 1% establishment fees) is taken by the customer as a loan .