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Key Conditions for Calculating the Early Repayment Amount

No: NA Date(g): 1/8/2015 | Date(h): 16/10/1436 Status: In-Force

Translated Document

Effective from Aug 01 2015 - Jul 31 2015
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  1. Use the declining balance method to distribute the term cost over the repayment period, with the term cost allocated proportionally among the installments based on the remaining balance of the financing amount at the start of the period for which the installment is due.
  2. The amortization table must specify (number of payments, payment date, payment amount, term cost amount (profit) and principal amount for each payment, remaining balance of the financing amount after each payment
  3. When opting for early repayment, the total remaining balance of the financing amount must be paid in full, along with the term cost for the three months following the repayment, calculated based on the declining balance.