Disburse & Manage Credit Contracts
Once you've configured your credit products and defined your service-level settings, you're ready to disburse credit contracts to your customers. A credit contract is the final step in the credit lifecycle, it binds a configured product to an individual customer, enabling fund disbursal, repayment tracking, and lifecycle monitoring.
This article walks you through the end-to-end process of creating and disbursing a credit contract in the XYB platform.
Prerequisites
Before disbursing a contract, make sure the following are set up:
Global settings configured: Currencies, interest calculation settings, collateral types, tax rules, and credit purposes. Learn more
Product configuration completed: A credit product (e.g., personal loan, BNPL, microloan) should already exist under Product Configuration > Products. Learn more
Customer account created: The borrower must exist as an entity with a valid payment account in the system. Learn more
Create and Disburse a Contract
1. Navigate to the Contract Module
Go to the Contracts > Lending section and click + New Contract.
2. Select Customer and Product
Customer: Choose an existing customer (e.g., John Doe).
Product group: Select the product group (e.g., Loan, BNPL).
Product name: Choose the pre-configured credit product (e.g., Personal Loan).
Credit payment account: Select the customer's account that will be used for repayments.
3. Define Contract Duration
Start Date / End Date: Choose contract duration.
Contract period type: Define whether the schedule is in Months, Weeks, etc.
Schedule type: Choose from repayment schemes like Annuity, Bullet, Balloon, based on the product setup.
Day of the month: Sets the due date for each installment.
4. Add Contract Purpose
Purpose: Select from predefined contract purposes such as Home Renovation, Business Loan, etc. (configured at the service level).
5. Set Amounts
Amount: Total loan disbursal amount.
Limit amount: Sets the upper bound, especially for revolving products like credit cards.
6. Configure Interest Terms
Principal interest margin (%): Margin added over the base rate.
Interest base rate & method: Pulled from interest service configuration.
Penalty rate: Applied on overdue payments.
Day count conventions: Used for accurate interest accrual.
First payback periods: Define when repayments begin.
Note: These values are pre-governed by your Interest Service, so ensure it’s preconfigured for consistent behavior.
7. Set Repayment Frequencies
Principal frequency: Monthly, quarterly, etc.
Interest frequency: Defines how often interest is paid by the customer.
8. Add Fee
You can attach fees directly to individual credit contracts during creation or updates.
To add a fee:
Select the Fee Type (e.g., Disbursement fee)
Give it a clear Fee Name (e.g., Payout fee)
Define when the fee applies (e.g., On contract payout)
Choose a Calculation Method (e.g., Fixed amount, % of principal)
Enter the Fee Amount and a Start Date
9. Finalize & Activate
Once all details are filled:
Review the contract summary
Click Create Contract to activate it
The contract now appears in the contract list and is automatically linked to repayment tracking, interest accrual, and fee collections
Monitoring and Lifecycle Management
Once disbursed, every contract has a dedicated overview page that includes:
Financial breakdown: Principal, interest, penalty, and receivable balance
Transaction logs: View all incoming payments and pending dues
Purpose & terms: Quickly view contract type, dates, and scope
Print/Download: Generate formal agreement documents
Learn more about:
Managing Credit Contracts and Terms
Viewing and Managing Day Changes in the Console
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