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How do I calculate my SPayLater Installment?
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When choosing SPayLater as your payment method to purchase items in installments, it’s important to understand how your total repayment amount is calculated.
Below is a step-by-step breakdown to help you easily compute the charges.
Fees/Charges | Particulars |
Processing Fee | 0% - 7% 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 will be based on your 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), 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. |
Total Repayment Formula:
1. Loan Principal
Example: If you buy an item worth ₱1,000 using SPayLater - your Loan Principal is ₱1,000.
2. Interest Computation
Interest is the cost charged to the user for borrowing the principal. The interest is calculated using this formula:
For example, if the interest rate is 3.95% per month and you choose a 3-month installment plan, the interest is calculated as follows:
3. Processing Fee Computation
A Processing Fee is applied to the loan, which is a fixed percentage of the principal. For example, if the processing fee rate is 5%, the processing fee is calculated as follows:
To note, a Documentary Stamp Tax (DST) - a government-imposed tax on loan transactions is also embedded in the loan. If the loan already has a processing fee, the DST is already part of it. However, in the absence of the fixed processing fee rate, the DST is calculated using the following formula:
Compute 1/200 or 0.5% of the loan principal: 1,000 x (1/200) = 5.00
Round up first to the nearest centavo: ₱5.00
Multiply by the tax rate (1.5): 5.00 x 1.5 = 7.50
Adjust for the loan tenure (loan tenure in days/ total days of the year): 7.50 x (90/365) = ₱1.85
4. Compute the Total Repayment Amount
Now, we add up all the charges:
Charge Type | Amount |
Loan Principal | ₱ 1,000 |
Interest | ₱ 118.50 |
Processing Fee | ₱ 50 |
Total Repayment | ₱ 1,168.50 |
For a ₱1,000 loan over 3 months, the total repayment amount is ₱ 1,168.50.
⚠️Note · Interest rates may vary, so always check your SPayLater terms before purchasing. · The Processing Fee includes the DST fee so that no separate DST charge will be added to your repayment amount. · For installment purchases, your repayment is first applied to interest and fees. Any remaining amount shall reduce the principal balance thereafter. · During repayment, only the Principal Amount will be restored to the Total Credit Limit. · For those with temporary credit limits and/or late fees, these are prioritized over restoring your total credit limit. |
