The total amount the borrower will pay consists of three things:
Principal: this is the original loan amount that must be repaid to the bank
Interest: interest rate is fixed over the whole tenor the loan. The interest rate is up to 18%.
Applicable fees and charges: the borrower pays the bank 2% of the loan amount in processing fee subject to a minimum of $100 or ៛400,000 at the time of application. A charge or a penalty is levied if the borrower misses a monthly payment. Please see Q20.