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Bundled products can make a monthly quote difficult to interpret
A combined payment may include a loan and another service.
The apparent difference between two quotes can therefore reflect what is bundled rather than a different interest calculation.
Separate the products and identify required or optional conditions. The borrower needs to know what each payment buys and what changes if one component is declined or ends.
Prepare your application document list
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.