How Mobiloan Calculates Rates and Fees

Mobiloan is designed to make loan pricing simple, accurate, and fully compliant with South African lending regulations.

Every time a quotation is created, Mobiloan automatically calculates all loan costs and charges — from interest and fees to insurance and discounts — and then builds a transparent repayment schedule that anyone can understand.

The system follows the rules defined by the National Credit Act (NCA) and the National Credit Regulator (NCR), ensuring each loan is fair to the borrower and legally compliant for the lender.

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What Mobiloan Calculates ?

Mobiloan takes care of every element involved in loan costing and repayment setup. Each quotation includes the automatic calculation of:

• Initiation Fees – once‑off setup costs derived from product limits and NCA fee rules.

• Service Fees – ongoing monthly administration fees, adjusted automatically for short or long first‑periods (pro‑rata).

• Interest Charges – calculated based on the product’s interest rate, repayment frequency, and actual number of days between instalments.

• Insurance Premiums – includes mandatory credit life and optional voluntary insurance, generated per product or insurer settings.

All of these figures are combined into a detailed repayment table (or amortisation schedule) showing exactly what makes up each instalment:

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Scope of this documentation

Refer to the following sections for detailed explanations of each rate and fee component, as each has its own independent calculation method.

Select a page link below to learn more

First‑Period Length and FactorInitiation Fee CalculationInterest Rate CalculationService Fee Calculation and Pro‑Rata AdjustmentInsurance Calculation and Premium LogicCost‑of‑Credit (CoC), Discounts, and Instalment Schedule