<h2>How are fees calculated?</h2>
<h3>TL;DR</h3>
<p>As soon as a loan is approved, you can retrieve its cost using the <b>fees_estimated</b> field from the
<a href="https://developers.getdefacto.com/reference/get_loan-loan-id">GET /loan/`{id}`</a> endpoint. This will save you the cost of running the calculations yourself and directly provides the cost of funding for a loan repaid on time.</p>
<h3>Standard interest rate</h3>
<p>Let's assume a loan of 10,000 cents (i.e., €100) over 60 days.</p>
<p>The daily interest rate may range between 0.05% and 0.1%. The exact rate applicable to your loan is specified in the <b>fees_daily_rate</b> field, via the <a href="https://developers.getdefacto.com/reference/get_borrower-borrower-id-financial-products">GET /borrower/`{id}`/financial_products</a> endpoint. It is also available in the contract PDF.</p>
<p>Once you have the loan amount, the daily rate, and the duration, the calculation is straightforward:</p>
<pre>Cost of funding = interest_fees
= outstanding_amount × duration_in_days × (fees_daily_rate / 100)
= 10,000 (cents) × 60 (days) × (0.06 / 100)
= 360 cents</pre>
<p><i><b>Note:</b> If you repay the loan on the same day it was issued, Defacto will still charge a minimum of one day of interest.</i></p>
<h3>Late interest</h3>
<p>Late interest applies starting 7 days after the scheduled repayment date (or 30 days after the contractual date if repayment was postponed excessively). From that point on, the <b>late_daily_rate</b> replaces the standard <b>fees_daily_rate</b>.</p>
<p>The late daily rate is usually equal to twice the standard rate, capped at 0.1%.</p>
<p>Example: A loan repaid 10 days after the contractual repayment date. The calculation is as follows:</p>
<pre>Cost of funding = regular_interest_fees + late_interest_fees
= outstanding_amount × (late_start_date − paid_at in days) × (fees_daily_rate / 100)
+ outstanding_amount × (repayment_date − late_start_date in days) × (late_daily_rate / 100)
= 10,000 (cents) × 67 (days) × (0.06 / 100)
+ 10,000 (cents) × 3 (days) × (0.1 / 100)
= 432 cents</pre>
<h3>Penalties</h3>
<p>To ensure a high-quality service for all our customers, we apply penalties for failed repayments. Each time a direct debit fails—whether due to insufficient funds or because the borrower rejects the payment—a fixed penalty of €40 is charged.</p>
<p>The fixed chargeback penalty amount is also available in the <b>fixed_chargeback_penalty</b> field of <a href="https://developers.getdefacto.com/reference/get_borrower-borrower-id-financial-products">GET /borrower/`{id}`/financial_products</a> endpoint.</p>
<p>To count chargebacks on a loan, you must count the number of payments in:</p>
<ul>
<li>status=FAILED and payment_method=DIRECT_DEBIT and payment_type = REPAYMENT_NOMINAL</li>
<li>status=FAILED and payment_method=DIRECT_DEBIT and payment_type = REPAYMENT_FEES (only 1 time despite it is bound to many loans)</li>
<li>status=PAID and payment_method=DIRECT_DEBIT and payment_type=CHARGEBACK</li>
</ul>
<p><b>Note: VAT is not applied to any of the above fees.</b></p>All
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