Amortising Loan¶
| Product ID | PRD-009 |
| Launch tier | 2 |
| Jurisdiction | NZ + AU |
| Status | Planned |
| Regulations | CCCFA 2003 · NCC Act 2009 (NCCP) · AML/CFT Act 2009 · AML/CTF Act 2006 · Privacy Act 2020 · Privacy Act 1988 |
An amortising loan provides a fixed advance repaid through regular instalments of principal and interest over a defined term. The product covers unsecured personal loans, vehicle finance, and small business term loans. The full repayment schedule is generated at settlement and updated automatically whenever a schedule-changing event occurs.
Key terms¶
| Term | Value |
|---|---|
| Loan type | Fully amortising (P+I instalments) |
| Currency | NZD (NZ) / AUD (AU) |
| Security | Unsecured (personal/vehicle) or secured (per facility deed) |
| Rate type | Fixed or variable (customer selects) |
| Interest rate | Per rate schedule at settlement |
| Repayment frequency | Weekly, fortnightly, or monthly (customer selects) |
| Repayment method | Direct debit from nominated account (MOD-114) |
| Extra repayments | Variable: unlimited, no fee. Fixed: up to annual threshold without fee; above threshold, break cost per fee schedule |
| Early repayment in full | Permitted; fee on fixed rate per fee schedule |
| Schedule delivery | At settlement; updated automatically on any schedule-changing event |
| Statement frequency | Monthly |
System capabilities¶
- Full amortisation schedule delivered within 60 seconds of settlement (MOD-112).
- Variable rate change triggers automatic schedule recalculation within 5 minutes; updated schedule delivered to the customer within 24 hours.
- Extra repayment: customer offered reduce-term or reduce-instalment choice in-app; new schedule generated immediately.
- Hardship restructure available in-app via MOD-065 — no branch visit required.
- IFRS 9 stage monitoring continuous (MOD-030) — not an annual review only.
Eligibility¶
Assessed automatically by MOD-105. Requires verified KYC (MOD-009), CDD tier assigned (MOD-010), no active sanctions match (MOD-013), jurisdiction match, satisfactory affordability assessment (MOD-027), and credit assessment (MOD-028). For existing customers, MOD-029 may hold a current pre-approval — no new assessment is required for acceptance.
Account opening¶
For pre-approved customers: one-tap acceptance. For other customers: the application triggers MOD-028 (bureau pull), MOD-027 (affordability), and MOD-105 (eligibility gate); decision returned in-session. On approval, MOD-050 delivers the credit contract disclosure, MOD-049 captures consent, and MOD-007 transitions the loan to ACTIVE. MOD-001 posts the settlement disbursement and MOD-112 generates the initial amortisation schedule, delivered to the customer within 60 seconds of settlement.
Fees¶
| Fee type | Amount |
|---|---|
| Establishment fee | Per fee schedule |
| Monthly account fee | Per fee schedule |
| Early repayment fee (fixed rate only) | Per fee schedule |
| Late payment fee | Per fee schedule |
| Paper statement fee | Per fee schedule |
Interest¶
Interest accrues daily using the declining balance method: daily_interest = outstanding_principal × (annual_rate / 365). Each scheduled repayment covers the interest accrued since the last payment, with the remainder applied to principal reduction. For variable rate loans, MOD-006 publishes rate change events and MOD-112 recalculates the schedule within 5 minutes. Prior schedule versions are retained for audit purposes.
Statements¶
Generated monthly by MOD-113. Each statement shows opening principal balance, repayments received, interest charged in the period, principal reduction, and closing balance. Delivered to the in-app document vault; available as PDF download. Retained for 7 years.
Closing / exit terms¶
The loan closes when the outstanding principal balance reaches zero through scheduled repayments or early repayment in full. For early repayment of a fixed rate loan, MOD-110 assesses the applicable fee per the fee schedule and discloses it before the customer confirms. For variable rate loans, no break cost applies. MOD-007 transitions the loan to CLOSED on final payment.
For customers experiencing financial difficulty, a hardship variation may be requested in-app. MOD-065 evaluates the request, proposes a restructured schedule, and on acceptance journals the new terms atomically. MOD-112 generates the restructured schedule and delivers it to the customer.
Regulatory¶
New Zealand: Credit Contracts and Consumer Finance Act 2003 — responsible lending, hardship provisions. AML/CFT Act 2009 — implemented by AML-003. Privacy Act 2020 — implemented by PRI-001.
Australia: National Consumer Credit Protection Act 2009 — credit licence, responsible lending, hardship obligations. AML/CTF Act 2006 — implemented by AML-003. Privacy Act 1988 — implemented by PRI-001.
IFRS 9 provisioning: loans are staged continuously by MOD-030 and expected credit loss provisions are maintained by MOD-031 per CRE-006.
Governing policies¶
- CRE-002 — Responsible Lending Policy
- CRE-004 — Loan Origination Standards
- CRE-006 — Impairment & Provisioning Policy
- CON-001 — Customer Fairness & Conduct Policy
- CON-004 — Product Disclosure & Sales Practice Policy
- CON-005 — Fee & Pricing Transparency Policy
- CON-006 — Product suitability and governance
- AML-003 — Know Your Customer (KYC) & Identity Verification Policy
- PRI-001 — Privacy Policy
Implementation modules¶
| Module | Name | Status |
|---|---|---|
| MOD-001 | Double-entry posting engine | Deployed |
| MOD-002 | Immutable transaction log | Deployed |
| MOD-003 | Real-time balance engine | Deployed |
| MOD-005 | Daily accrual calculator | Deployed |
| MOD-006 | Rate change propagation | Deployed |
| MOD-007 | Account state machine | Deployed |
| MOD-020 | Pre-payment validation suite | Deployed |
| MOD-027 | Affordability calculator | Deployed |
| MOD-028 | Credit score & risk rating | Deployed |
| MOD-029 | Pre-approval engine | Deployed |
| MOD-030 | Stage allocation model | Deployed |
| MOD-031 | ECL calculation & GL posting | Deployed |
| MOD-044 | JWT role-based access control | Deployed |
| MOD-049 | Open banking consent management | Deployed |
| MOD-050 | Disclosure enforcement module | Deployed |
| MOD-065 | Credit servicing & collections | Deployed |
| MOD-068 | Authentication & session management | Deployed |
| MOD-105 | Product eligibility engine | Not started |
| MOD-110 | Fee engine | Deployed |
| MOD-112 | Amortisation schedule engine | Deployed |
| MOD-113 | Statement generation | Not started |
| MOD-114 | Direct debit mandate management | Deployed |
Compiled 2026-05-22 from source/entities/products/PRD-009.yaml