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A percentage fee needs its calculation base
The same displayed percentage can refer to principal, balance, settlement or another defined amount.
Without its base and trigger, the percentage does not identify a bill.
The written terms should be used to form the example. A guide must not invent an amount or silently assume the base merely because the label sounds familiar.
Compare secured and unsecured structures
Definitions
- Total repayable
- Sum payable under the stated schedule and its assumptions; contingent charges and changes must be considered separately.
- Amount received
- Money actually made available to the borrower, which can differ from the stated loan amount if a charge is deducted.