> For the complete documentation index, see [llms.txt](https://docs.xyb.co/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.xyb.co/credit/configure-and-create-credit-products/configure-global-settings-for-credit-products/configure-and-create-collaterals.md).

# Configure and Create Collaterals

Before credit contracts can be issued with collateral-backed terms, the **Collateral Service** must be configured to define the types of collateral you accept and the data required for each. This configuration ensures clarity for legal registration, risk analysis, and contractual enforcement across your lending ecosystem.

***

### Step 1: Define Collateral Types

Begin by defining the high-level **Collateral Types** your credit institution accepts. These are broad classifications such as:

* **CASH** – Liquid holdings such as deposits, safes, or accounts
* **IMMOVABLE** – Real estate assets like houses or apartments

Each **type** requires a:

* **Code**: A machine-readable identifier (e.g., `CASH`)
* **Value**: A user-friendly display label (e.g., `Cash`)

These types will be available in the product and contract definition screens, ensuring consistency in downstream logic.

***

### Step 2: Define Subtypes (Optional but Recommended)

Each **Collateral Type** can have one or more **Subtypes** to provide further classification. For instance:

| Type      | Subtype Code | Subtype Value |
| --------- | ------------ | ------------- |
| CASH      | `VAULT`      | Bank vault    |
| IMMOVABLE | `APARTMENT`  | Apartment     |
| IMMOVABLE | `HOUSE`      | House         |

This additional granularity allows better matching of collateral requirements to product criteria.

***

### Step 3: Add Collateral Fields

Each **Type** or **Subtype** can include structured **Collateral Fields** that must be collected during creation. Fields can include:

* **LOCATION** (for cash):
  * Options: Vault, Bank account, Home safe, Cookie jar, Under mattress
* **HOUSE NR** (for real estate):
  * Data Type: Number
  * Required: Yes

These fields help with valuation, risk grading, and mortgage registry integration.

> Tip: Always mark fields required if they are mandatory for regulatory or contractual validation.

***

### Step 4: Create Collateral Records

Once the service is configured, go to **Collaterals** under **Contracts** and:

1. **Select the Type and Subtype**
2. **Enter required metadata fields**
3. **Define any linked mortgage details**, such as:
   * Collateral register number
   * Mortgage priority
   * Start/end dates
   * Preceding priority amounts

This ensures full legal traceability and completeness for contract generation.

***

### Example Setup

#### Collateral Type: `IMMOVABLE`

* Subtype: `HOUSE`
* Field: `House nr` = 12
* Mortgage Priority: `1st lien`

***

By predefining collateral structures, you ensure consistency across all credit products, reduce the risk of invalid data entry, and enable automation of valuation and approval logic in contract workflows.


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