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March 28, 2020

Dear Colville Tribal Members and Tribal Credit Customers,

Due to the COVID-19 coronavirus, Colville Tribal Credit will be voluntarily implementing two loan program benefits for a limited time and for a limited group of borrowers.


These two loan benefits will temporarily apply only during the period of April 1, 2020 until June 30, 2020.


The first benefit will be a temporary reduction in interest rate on our loans to 0%.


The second benefit will be an extension of loan installment payments that would otherwise be due. This benefit would swap out the obligation to make current loan payments in exchange for adding these loan installment payments back in the at the end of the loan and pushing out the final loan payment due.


These two benefits will only apply to a limited group of customers. The limited group of customers consists of (1) a new loan customer that completes signing all necessary loan documents before June 30, 2020; (2) a loan customer that is in full compliance with their loan payments between March 1 through June 30, 2020; and (3) a loan customer that was delinquent by 59 days or less as of February 29, 2020.


We want to emphasize that nothing would prevent any Tribal Credit borrower from continuing to make any and all loan payments they may voluntarily choose to make. There also could be financial benefits to our customers from making at least some type of payment during this time. If you would like to not have either of these benefits applied to your loan, please timely contact Tribal Credit in writing and we will honor your request.


Please feel free to contact Colville Tribal Credit with any questions or to express any desire of an eligible borrower to not receive these benefits.

Automatic program you do not need to contact Tribal Credit to get this benefit. If you were 60 days or over as 02/29/2020 call Tribal Credit. 509-634-2664.


Thank you,
John Smith
General Manager



 

When you borrow money, the lender charges you for using the funds. This charge is interest. The cost of the credit is paid for in small amounts over the life of the loan. Every monthly payment includes repayment of some of the borrowed amount (principal) and some of the cost of borrowing the money (interest).

Monthly payment = principal payment + interest

 

The mathematical formula for the computation of interest is as follows:

Interest = Principal x Rate x Time(in years)

As an example, if an individual borrows $1,000 at 12% interest due in one year, the calculation would be:

Interest = $1,000 x .12 x 1

Interest = $120

At the maturity of the loan, the borrower would pay $120 interest plus $1,000 principal for a total of $1,120.

The fractional part of a year involved in a loan is computed on the basis of a 365/366 day year using actual days of each month. If an individual borrowed $1,000 at 7.25% interest and repaid in monthly instalments over one year, the calculation would be as follows:

Date of Payment

Payment Amount

# of Days Since Last
Principal Reduction

Principal Reduction

Accrued
Interest

Principal
Amount

08/25/09

--

--

--

--

$1,000.00

09/10/09

$50.00

16

$46.82

$3.18

$953.18

09/25/09

$100.00

15

$97.16

$2.84

$856.02

10/25/09

$75.00

30

$69.90

$5.10

$786.12

11/30/09

$75.00

36

$69.38

$5.62

$716.74

12/25/09

$50.00

25

$46.44

$3.56

$670.30

01/25/10

$75.00

31

$70.87

$4.13

$599.43

02/09/10

$80.00

15

$78.21

$1.79

$521.22

03/15/10

$75.00

34

$71.48

$3.52

$449.74

04/20/10

$100.00

36

$96.78

$3.22

$352.96

05/15/10

$75.00

25

$73.25

$1.75

$279.71

06/25/10

$75.00

41

$72.72

$2.28

$206.99

07/15/10

$75.00

20

$74.18

$0.82

$132.81

08/25/10

$133.89

41

$132.81

$1.08

--

Totals

$1,038.89

--

$1,000.00

$38.89

$0.00

As you can see from the above table, the number of days between payments and the principal balance on the loan makes a difference in the amount of interest due. Interest is always collected first with each payment before any funds are applied to principal.

Tribal Credit employees are available to explain interest and how it is calculated.
Give us a call at 509.634.2664 or drop by our office.

 

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