Sample - TERM LOAN DISCLOSURE STATEMENT
The following is a summary of certain key terms of your Loan Agreement and other important information that will
apply to your Loan Account (your “Account”) issued and administered by Affirm Financial Services*.
Principal Amount
Annual Interest Rate
From $300.00 to $7,500
From 29.9% to 39.9%* Interest is calculated at the annual interest rate
calculated daily and compounded monthly, not in advance. On each regular loan
payment date, we re-calculate the amount of interest you owe. We take the
principal amount owing, plus interest if your payments are not up to date, from
the previous payment date until this payment date. We add this interest
amount to the principal amount owing. Then we use this new amount to
calculate the interest owing on your next loan payment date. This is called
compound interest.
*Interest rates are based on various factors, including credit criteria and
payment history
Annual Percentage Rate
Term
Date of Advance
The Annual Percentage Rate does not differ from the Annual Interest Rate.
Loan term is from 6 to 60 months. Our term is open.
The principal amount of the loan is to be advanced on or about (DATE). Interest
is to begin to be charged on that same date.
Payments
Will indicate the amount of each monthly payment of $000.00 and is payable on
the (day)th of every month starting on (MM/DD/YEAR). Each regular payment
you make pays the interest costs for the loan and repays part of the principal
amount borrowed. Each payment will be applied first to interest then to
principal. The principal amount of the loan decreases with each regular payment
and the portion of your payments needed to cover interest costs also decreases.
Over time, when your payments are made on time, an increasingly larger
proportion of each regular payment goes toward repaying the principal amount
you borrowed.
Total Cost of Credit
[$1,223.52]*
*Total Cost of Credit Example for a loan of $1,000 at 39% for a term of 12
months. Calculation (rates and term are expressed in months):
{($1,000*3.25%)/[1-(1+3.25%)^12)]}*12= $1,223.52
Amortization Period
The amortization period will differ from the term only when prepayments are
made.
Prepayment Privilege
You may repay a greater portion of the loan than required in any given period
without incurring penalty charges for the prepayment of the loan. Prepayment
will change the amortization of your loan but not its terms.
No prepayment charges
Returned payment Fee: $45.00 per occurrence
Prepayment Charges
Other Fees
OTHER IMPORTANT INFORMATION
If you are in default, we can require you to pay the costs reasonably incurred for legal services retained
by us to collect or attempt to collect payment from you.