How to Disburse Loans Using the Nordic Revolving Credit Line
Once the Nordic Revolving Credit product has been configured by your product team, operations teams can start using it to issue credit facilities to individual customers, and later initiate disbursements (sub-contracts) under that facility.
This guide explains how to:
Select the right product group and product
Create a credit facility (main contract)
Disburse individual drawdowns (sub-contracts)
Track contract and repayment status
How It Works
The Nordic Credit Line is a parent-child contract model:
Main contract = the credit facility (limit, terms, schedule, etc.)
Sub-contracts = individual drawdowns, repaid over time like loans
All repayments and invoices are consolidated under the parent
Create the Main Credit Contract
Go to Contracts > Lending > Create
Under Customer, select the customer (e.g., Eva Jensen)
In Product Group, select:
Credit LineIn Product Name, select:
Nordic Revolving CreditSet the Start Date and End Date Note that based on the product settings, some fields will be autopopulated.
Choose:
Schedule Type: Typically
AnnuityDay of the Month: When payments are due
Contract Period Count Type:
MonthContract Purpose: E.g., Margin Lending
Set Amount and Limit (they may match if unused)
Note: You can also assign fees and terms, but most are pre-configured from the product.
Configure Interest Details
In this section, define how interest should be calculated and applied for this customer contract. These values are based on your global interest service setup and the rules associated with the selected product.
Principal interest margin (%)
Add the fixed margin over the base rate (e.g., 15.6). Use comma , as a decimal separator if required by locale.
Interest base rate method
Automatically populated from product setup. This field is non-editable at contract level.
Interest base rate (%)
If applicable, input the current reference rate
Principal interest day count convention
Select how days are counted for accruals (e.g., ACT/360).
Commitment interest margin (%)
Additional charge for unused amounts
Commitment interest day count convention
Same logic as principal interest.
Penalty rate (%)
Rate applied to overdue principal or interest
Penalty day count convention
Used for penalty interest accrual
Principal frequency
How often principal payments are expected
Interest frequency
How often interest is due (e.g., Monthly).
First principal payback period
Grace period before first principal repayment (e.g., 1 = first payment after 1 cycle).
First interest payback period
Grace period before first interest payment
Note: All these values must comply with the product definition and your internal lending rules. Any unsupported configuration will block contract creation or repayment calculations.
Add Contract Fees
This step lets you attach a fee to the credit contract, for example, a disbursement fee deducted at payout.
You simply:
Select the fee type (e.g., Disbursement fee)
Name it (e.g., Payout fee)
Set the calculation method (e.g., Fixed amount)
Enter the fee amount and start date
Once saved, the fee is applied automatically during contract execution and tracked in the contract's financials.
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