Cost‑of‑Credit (CoC), Discounts, and Instalment Schedule

The Cost‑of‑Credit (CoC) is everything a borrower pays beyond the original loan amount — including interest, initiation, service fees, insurance, and VAT.

The National Credit Act (NCA) limits how much these combined charges may total. Mobiloan automatically checks every quotation to ensure those limits are never exceeded.

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How the System Enforces Compliance ?

At the end of the calculation, Mobiloan compares the total costs against the product’s maximum allowed percentage (the Max Fees Percent). Example: If a product allows 25 % of the loan amount, a R 1 000 loan may include no more than R 250 in total charges.

If charges exceed that limit, Mobiloan:

1. Calculates the legal maximum.

2. Reduces repayments until total charges match that value.

3. Applies the difference as an automatic discount, shown clearly in the repayment schedule.

If within limits, no adjustment is made. This automatic check ensures every loan is fully NCR‑compliant, regardless of size or term.

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Rounding Instalments

After costs and discounts are finalized, Mobiloan rounds instalments neatly according to product settings (e.g., to the nearest R 10). This keeps repayments simple, collection‑ready, and clearly understood by the borrower.

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Why It Matters

The Cost‑of‑Credit and Discount steps are the final safeguards before the repayment schedule is generated. They guarantee that:

• Loans never exceed NCR limits.

• Discounts are handled automatically and visibly.

• Instalments are rounded for clarity and accuracy.

By the time a quotation or agreement is issued, every figure — from fees to final repayment — is verified, fair, and legally compliant.