Create credit product
The credit product in the card domain is designed to set specific conditions for customer credit and can be linked to a credit card product or any other card product with credit terms.
Use case
We will create a credit product with interest, penalty and transaction settings. We will also include the setup rules for invoice generation and invoice repayment.
The product name CREDIT_PRODUCT has been given to a credit product in Estonia (EE) with the EUR currency, which has been set to an ACTIVE state.
The credit details are as follows: The selected credit account type is CREDIT1, with a minimum amount of 100, a maximum of 10000, and a default of 1000. The credit offer is set to be valid for 15 days.
EFFECT is the selected method for calculating the Annual Percentage Rate (APR).
Note: returns the effective annual interest rate, given the nominal annual interest rate and the number of compounding periods per year.
The card scheme selected is MASTERCARD.
The rule for the service account selected is CURRENT_ACCOUNT, and there is no requirement for a reference number.
Payments can be made before the due date and interest calculated per transaction.
The repayment rule is a percentage of the outstanding balance plus interest and fees. The minimum invoice amount is 100, minimum repayment rate is 10% .The fee repayment rule is set to TRANSACTION, the credit contract and account transaction-related fees will be debited from the credit account.
The first invoice will be generated at least 14 days after the contract is activated. Regular invoices are generated on the first day of the month and payment is due on the 20th.
The selected minimum withdrawal rate is FIXED with a minimum amount of 100.
The penalty feature would be enabled, allowing for a grace period of three days and a grace amount of 50.
The debt condition allows for a 30-day payment delay to avoid card blocking and a 90-day payment delay to prevent credit default.
Price list applicable for the credit type
Allowed price lists for the credit product
Interest conditions
The interest rates for purchases (PUR_INT) range from 1% to 31%, and the default rate is 19%. The interest amount is calculated using the ACTUAL/ACTUAL method.
The interest rates for cash withdrawals (CASH_INT) range from 1% to 31%, and the default rate is 19%. The interest amount is calculated using the ACTUAL/ACTUAL method.
Transaction details
We will set the grace type for card purchases (CARD_PUR) to PERIOD, with 0 grace days, and PUR_INT as the method of calculating interest.
We will set the grace type for card top-up (CARD_TOPUP) to PERIOD, with 0 grace days, and CASH_INT as the method of calculating interest.
The penalty conditions for the principal (PRI_P) to use the ACTUAL/ACTUAL method and a 10% default rate.
Receivable formation rules
Group of periodic (PERIODIC) repayments. Setting principal (PRI) repayments ranked first.
Group of periodic (PERIODIC) repayments. Setting principal penalty (PRI_P) repayments ranked second.
Group of periodic (PERIODIC) repayments. Setting cash withdrawal interest (CASH_INT) repayments ranked third.
Group of periodic (PERIODIC) repayments. Setting purchase interest (PUR_INT) repayments ranked fourth.
Group of periodic (PERIODIC) repayments. Setting opening fee (OPENING_FEE) repayments ranked fifth.
Group of premature repayments (PREMATURE_REPAYMENT). Setting principal (PRI) repayments ranked first.
Group of premature repayments (PREMATURE_REPAYMENT). Setting principal penalty (PRI_P) repayments ranked second.
Group of premature repayments (PREMATURE_REPAYMENT). Setting cash withdrawal interest (CASH_INT) repayments ranked third.
Group of premature repayments (PREMATURE_REPAYMENT). Setting opening fee (OPENING_FEE) repayments ranked fourth.
Group of premature repayments (PREMATURE_REPAYMENT). Setting purchase interest (PUR_INT) repayments ranked fifth.
Receivable line rules
Group of periodic (PERIODIC) repayment items. Setting principle (PRI) repayment sorting group ranked first.
Group of periodic (PERIODIC) repayment items. Setting opening fee (OPENING_FEE) repayment sorting group ranked second.
Group of periodic (PERIODIC) repayment items. Setting principle penalty (PRI_P) repayment sorting group ranked third.
Group of periodic (PERIODIC) repayment items. Setting cash withdrawal interest (CASH_INT) repayment sorting group ranked fourth.
Group of periodic (PERIODIC) repayment items. Setting purchase interest (PUR_INT) repayment sorting group ranked fifth.
Group of premature repayment (PREMATURE_REPAYMENT) items. Setting principle (PRI) repayment sorting group ranked first.
Group of premature repayment (PREMATURE_REPAYMENT) items. Setting opening fee (OPENING_FEE) repayment sorting group ranked second.
Group of premature repayment (PREMATURE_REPAYMENT) items. Setting principle penalty (PRI_P) repayment sorting group ranked third.
Group of premature repayment (PREMATURE_REPAYMENT) items. Setting cash withdrawal interest (CASH_INT) repayment sorting group ranked fourth.
Group of premature repayment (PREMATURE_REPAYMENT) items. Setting purchase interest (PUR_INT) repayment sorting group ranked fifth.
Group of one time (ONE-TIME) repayment items. Setting principle (PRI) repayment sorting group ranked first.
Group of one time (ONE-TIME) repayment items. Setting opening fee (OPENING_FEE) repayment sorting group ranked second.
Group of one time (ONE-TIME) repayment items. Setting principle penalty (PRI_P) repayment sorting group ranked third.
Group of one time (ONE-TIME) repayment items. Setting cash withdrawal interest (CASH_INT) repayment sorting group ranked fourth.
Group of one time (ONE-TIME) repayment items. Setting purchase interest (PUR_INT) repayment sorting group ranked fifth.
Sample API call
To create the credit product, use the following endpoint:
Sample request
The sample request body is as follows:
Sample response
Below you will find the response to the sample request:
Result
The credit product has been created with settings for interest, penalty, and transactions, as well as rules for generating invoices and repayment.
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