How does Mobiloan Calculate the Minimum Expenses Required on an given loan?
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Mobiloan calculates the minimum expense for a loan applicant based on their gross monthly income and the National Credit Regulator (NCR) guidelines.
Income Bracket Determination: The applicant's gross monthly income is used to determine their income bracket. Each income bracket has a corresponding minimum monthly fixed factor and a percentage rate.
Calculating the Expense: The minimum expense is calculated using the following formula:
Applying the Result: If the applicant claims expenses lower than the calculated minimum expense, the credit provider can assume the minimum expense as the applicant's actual expense. However, if the applicant claims higher expenses, they may need to provide additional proof to support their claim.
To further refine affordability assessments, Mobiloan allows superusers to define category-specific minimum expenses. If the category-specific minimum exceeds the NCR-calculated minimum, the higher value is used. This ensures that affordability assessments are accurate and compliant with regulatory requirements.
