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How does the SPayLater payment work? (ENG)
Para sa Taglish version ng article, basahin dito.
If SPayLater is chosen as the payment method for an order, only the principal amount will be deducted from the Credit Limit, while the interest will not be deducted.
As a result, when the user pays their SPayLater Bill, only the outstanding principal amount will be credited back.
List of fees related to SPayLater
Fees/Charges | Particulars |
Credit Limit | Php 1,500 - Php 50,000 |
Processing Fee | 0% - 2% of the total checkout amount (i.e. principal), inclusive of (0.75% loan term in days/365) applied on the principal, which will be charged as payment for the Documentary Stamp Tax. This will be distributed via monthly repayments. |
Interest Rate | 1% - 5% of the total checkout amount (i.e. principal), will be distributed via monthly repayments. The Interest rate offered will be based on your personal credit profile and may differ from the rate offered to other borrowers. |
Late Charge | 2.5% - 5% applied to the outstanding loan amount (including fees and interest), and at a monthly rate. If you have overdue payments from another month, the late charge will be applied to your total overdue amount and will be included in your existing charges. |
Sample Computation of SPaylater Bill:
If someone buys items worth P1,000 on Shopee using SPayLater and the 3-month installment option, the total repayment amount can be calculated as follows:
To break it down further:
1. Loan principal is the amount borrowed (Php 1,000)
2. Interest is the cost charged to the user for borrowing the principal, and is calculated through the following formula:
Or in the case of this user:
3. Documentary Stamp Tax (DST) is the tax charged for this order, and the calculation is a little more complex:
To calculate the daily tax burden for the loan, we first multiply the loan principal by 1/200 multiplied by the tax rate of 1.5 (as mandated by Section 129 of the Tax Code by BIR).
This number represents the daily tax payment required from the user, and it should be rounded to the nearest 1 (i.e. nearest integer).
Next, we extend this daily tax burden over the loan's tenure. In this case, the user has chosen a 3-month installment plan, which is approximately 90 days out of the total 365 days in a year.
So in sum, the DST for this user will be:
Finally, combine all the calculated values using the original formula to determine the total repayment amount:
⚠️Note During repayment, only the Principal Amount will be restored to the Total Credit Limit. |
Learn more on how to pay your SPayLater Bills.
