late payment fee
Also called: denda telat bayar
An extra charge applied because an installment is paid past its due date.
What it means
A late payment fee is an extra charge applied when an installment is paid past its due date. The amount follows the credit agreement or the lender's terms. The fee can be a fixed amount or a certain percentage of the installment.
Why it matters for families
Fees increase a family's expenses and can pile up if payments are repeatedly late. Late payments can also affect credit history, which matters when applying for a loan later. Families should set payment reminders so they don't get charged a fee.
Example
For example, a monthly installment of Rp3 million and a late payment fee of 1 percent of the installment, which is Rp30 thousand per late payment. If you're late several times, the amount adds up. In addition, late payment records can appear in your credit history.
Common misunderstanding
Many people think the fee only applies to long delays. In fact, a fee can be charged as soon as a payment passes the due date.