Backend (BE) Fee - Creation & Update Guide

Last updated: May 7, 2026

Overview – How the BE Fee Works

  • The Backend Fee is configured as a single End-of-Term fee and recognized for OID

  • The system automatically calculates the weighted average rate across different periods

  • You do not need multiple fees - all changes are handled via rate updates

  • Each rate change creates a restructure event, which is tracked and used for OID

Step 1: Create the Backend (End-of-Term) Fee

  1. Navigate to the Loan Fees section

  2. Click Add Fee

  3. Configure the fee as follows:

    • Fee Type: EOT Fee

  4. Leave all default settings unchanged
    → The default configuration already aligns with system logic and OID handling

Step 2: Define the Initial Fee Rate

  1. Set the initial Backend Fee rate (for example: 1% of the approved amount)

  2. This rate applies starting from the loan start date

Example:

  • Loan start date: April 25

  • Initial BE fee rate: 1%

Step 3: Add Rate Changes for Different Periods

Example Timeline

First rate change

  • From date: April 26

  • Rate: 2% of approved amount

Second rate change (after one year)

  • From date: April 27 (following year)

  • Rate: 3% of approved amount

🔁 You may add as many rate changes as needed, each with its own effective date.

Step 4: (Optional) OID Effective Date Adjustments

  • If required, you may define a separate Effective From date

  • This is optional and only relevant when OID recognition timing should differ from the rate actual date

  • In most cases, the From Date alone is sufficient

Step 5: Save the Fee

  1. Click Add Fee / Save

  2. The system will automatically:

    • Recognize the fee for OID

    • Apply weighted averaging across all defined periods

What Happens in the Background

  • Each rate update creates a restructure event

  • Each restructure event:

    • Updates the End-of-Term Fee value

    • Recalculates the total OID

  • You can track:

    • The event date

    • The updated rate

    • The impact on OID

This ensures:

  • Accurate weighted-average Backend Fee

  • Full audibility

  • Correct OID allocation across periods