Example 1
Let's say a loan of ₹4,000 is overdue for 120 days and you funded ₹2,000 of it (50%). ₹2,800 is recovered (70%), so your 50% share is ₹1,400. You pay your 50% of the slab fee.
Loan Amount: ₹4,000
You invested: ₹2,000 (50%)
Recovered on the loan: ₹2,800
Your share of recovered (50%): ₹1,400
25% Third-party Expense (on ₹1,400): -₹350
91–180 days fee (50% of ₹1,000): -₹500
Total Recovery Fee: -₹850
You get (50% share): ₹550
Example 2
Let's say a loan of ₹30,000 is overdue for 150 days and you funded ₹12,000 of it (40%). ₹24,000 is recovered (80%), so your 40% share is ₹9,600. You pay your 40% of the slab fee.
Loan Amount: ₹30,000
You invested: ₹12,000 (40%)
Recovered on the loan: ₹24,000
Your share of recovered (40%): ₹9,600
25% Third-party Expense (on ₹9,600): -₹2,400
91–180 days fee (40% of ₹4,000): -₹1,600
Total Recovery Fee: -₹4,000
You get (40% share): ₹5,600
Important Points to Note
Recovery fee is proportional to your contribution: The recovery fee deducted will be in proportion to your contribution to the loan. For example, if you funded 50% of the loan, you'll be charged 50% of the recovery fee.
Fee is capped at recovered amount: The total recovery fee (including third-party charges) will never exceed the amount actually recovered. You will never owe more than what was collected.