A Borrower must only use this facility to fund a commercial activity.
(Propell is a commercial only lender and as such is not governed by consumer credit principles.)
From the date of the drawdown, the Borrower has six months to repay the draw down amount in full.
They can pay the principal back earlier than this with no penalty fee charged and pay only the fees due at the time of repayment. For example: if a Borrower were to draw down on the 1st January 2021, and then pay the full loan back 14th January 2021, then they would only pay the full principal plus the first month’s fee applicable. Otherwise, they pay each month on the anniversary of the drawdown plus the applicable fee for that month.
Propell uses a two stage fee structure – a big fee and a small fee. The big fee is applied for the first two months of the agreed repayment arrangement, with the small fee applied to the last four payments.
The big fee is applied from 3% to a maximum of 9.75%.
The small fee is 1% applied to all loans for the last four payments due.
Fee Application Example
For a $1,000 draw down paid as per schedule, the total the customer will pay back is $1,235. That is, six equal payments on the principal plus applicable fee each month. If the Borrower were to pay the loan in full within the first month of the draw down date, the total amount charged is $1,097.50.