Personal Loan¶
| Product ID | PRD-005 |
| 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 |
Personal loans provide unsecured credit for a fixed or variable rate over terms of 1–7 years. Credit decisions are fully automated — existing customers with a pre-approval on file can accept in one tap; new applications receive an in-session decision typically within 10 seconds.
Key terms¶
| Term | Value |
|---|---|
| Loan type | Unsecured personal loan |
| Currency | NZD (NZ) / AUD (AU) |
| Amount | Per credit assessment |
| Term | 1–7 years |
| Rate type | Fixed or variable (customer selects at application) |
| Interest rate | Per rate schedule at time of settlement |
| Repayment frequency | 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; excess subject to break cost per fee schedule |
| Early repayment in full | Permitted; fee applies on fixed rate per fee schedule |
| Statement frequency | Monthly |
System capabilities¶
- Credit decision automated and in-session — no multi-day turnaround.
- Pre-approved customers: one-tap acceptance; no new assessment required.
- Full amortisation schedule generated and delivered at settlement (MOD-112).
- Schedule automatically recalculated within 5 minutes of any variable rate change.
- Extra repayment processed in real time; customer offered choice of reduce-term or reduce-instalment.
- Hardship support available in-app — no requirement to call or visit a branch.
Eligibility¶
Assessed automatically by MOD-105. Requires verified KYC (MOD-009), CDD tier assigned (MOD-010), no active sanctions match (MOD-013), jurisdiction match, and a 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 existing customers with a pre-approval on file: one-tap acceptance in the app. MOD-050 delivers the credit contract disclosure. MOD-049 captures consent. MOD-007 transitions the loan to ACTIVE and MOD-001 posts the settlement entry to the nominated account.
For other customers: the application triggers a bureau pull via MOD-028 (result in under 10 seconds), affordability calculation via MOD-027, and eligibility gate via MOD-105. The decision is returned within the session. On acceptance, disclosure and consent steps complete and the loan settles automatically.
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 on the outstanding principal balance: daily_interest = outstanding_balance × (annual_rate / 365). Accrued interest is included in each scheduled repayment per the amortisation schedule. For variable rate loans, MOD-006 publishes rate change events and MOD-112 recalculates the schedule within 5 minutes.
Statements¶
Generated monthly by MOD-113 and delivered to the in-app document vault. Each statement shows opening balance, repayments received, interest charged, principal reduction, and closing balance. Statements are retained for 7 years.
Closing / exit terms¶
The loan closes when the outstanding 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 early repayment fee applies. MOD-007 transitions the loan to CLOSED on final repayment.
Regulatory¶
New Zealand: Credit Contracts and Consumer Finance Act 2003 — responsible lending, full disclosure, 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 obligations, responsible lending, hardship provisions. AML/CTF Act 2006 — implemented by AML-003. Privacy Act 1988 — implemented by PRI-001.
Affordability assessment applies NZ CCCFA stress buffers (NZ customers) or AU NCCP HEM benchmarks and serviceability buffers (AU customers). Assessment inputs, calculation, and outcome are retained for 7 years.
Governing policies¶
- CRE-001 — Credit Risk Management Policy
- CRE-002 — Responsible Lending Policy
- CRE-004 — Loan Origination Standards
- CON-001 — Customer Fairness & Conduct Policy
- CON-004 — Product Disclosure & Sales Practice Policy
- CON-005 — Fee & Pricing Transparency Policy
- AML-003 — Know Your Customer (KYC) & Identity Verification Policy
- PRI-001 — Privacy Policy
- CON-006 — Product suitability and governance
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-005.yaml