Revolving Credit Facility¶
| Product ID | PRD-008 |
| 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 |
A revolving credit facility provides a pre-approved credit limit that can be drawn, repaid, and redrawn repeatedly. Interest is charged daily only on the outstanding drawn balance — not on the unused limit. The facility covers consumer overdrafts, personal credit lines, and small business working capital facilities.
Key terms¶
| Term | Value |
|---|---|
| Facility type | Revolving credit — draw, repay, redraw up to limit |
| Currency | NZD (NZ) / AUD (AU) |
| Credit limit | Per credit assessment (MOD-027 + MOD-028) |
| Interest rate | Variable; per rate schedule; charged daily on outstanding balance only |
| Interest debit | Monthly |
| Minimum repayment | max(floor amount, % of outstanding balance) — per fee schedule |
| Direct debit | Minimum repayment auto-collected on due date (MOD-114) |
| Limit review | Automatic annual review; customer can request increase at any time |
| Redraw | Available immediately after repayment posts |
| Statement frequency | Monthly |
System capabilities¶
- Interest charged only on the actual daily outstanding balance — not on the full credit limit.
- Balance available for redraw immediately after a repayment posts — no processing lag.
- Minimum repayment auto-collected via direct debit — customer cannot accidentally miss it.
- Limit increase assessed and decided in-session via the automated credit pipeline.
- Continuous fraud monitoring on all drawdowns (MOD-023).
- Hardship support available in-app via MOD-065 — no branch visit required.
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). Responsible lending obligations apply at origination and at each limit increase.
Account opening¶
Application triggers MOD-028 (credit score), MOD-027 (affordability), and MOD-105 (eligibility gate). Decision is returned in-session. On approval, MOD-050 delivers the credit contract disclosure, MOD-049 captures consent, and MOD-007 transitions the facility to ACTIVE. The credit limit is immediately available to draw.
Fees¶
| Fee type | Amount |
|---|---|
| Establishment fee | Per fee schedule |
| Monthly account fee | Per fee schedule |
| Late payment fee | Per fee schedule |
| Limit increase fee | Per fee schedule |
| Paper statement fee | Per fee schedule |
Interest¶
Interest accrues daily on the outstanding drawn balance: daily_interest = outstanding_balance × (annual_rate / 365). Accrued interest is debited monthly as a single posting. The rate is variable; MOD-006 manages rate change events and customers receive notice per CON-005 before any rate increase takes effect.
Statements¶
Generated monthly by MOD-113. Each statement shows opening drawn balance, all drawdowns and repayments, daily interest accrual, monthly interest debit, and closing balance. Delivered to the in-app document vault; available as PDF download. Retained for 7 years.
Closing / exit terms¶
The drawn balance must be repaid in full before closure. MOD-007 enforces this gate. On zero balance, any pending direct debit mandates linked to the facility are cancelled and the credit limit is cancelled. Account transitions to CLOSED via MOD-007. No break cost applies on closure of a revolving facility.
Regulatory¶
New Zealand: Credit Contracts and Consumer Finance Act 2003 — responsible lending obligations apply at origination and at each limit increase; hardship provisions apply. 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.
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
- 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-021 | Payment limit & velocity controller | Deployed |
| MOD-022 | Payment audit trail | Deployed |
| MOD-023 | Transaction fraud scorer | 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-008.yaml