Application expenses using COLA, HPI, HEM or actual expenses.

Application expenses using COLA, HPI, HEM or actual expenses.

During the evaluation of an application the borrower`s income and expenses are taken into account to see if they can service (afford) the repayments on top of their everyday expenses.

The platform caters for 4 options to be used to assist in determining the borrowers expenses for a personal borrower:

  1. Actual expense values supplied by the borrower
  2. COLA (Cost of Living Allowance
  3. HPI    (Henderson Poverty Index)
  4. HEM  (Household Expenditure Measure)
For business borrowers the business has to supply actual expense values.

See the surplus / NDI article for details on how the expenses are applied.

The finance company can define the method to use in the cost of living business rule.