Loan & Credit Product Builder
Everything starts with the product definition. A credit line sets the profit rate, penalty rate, origination fee, minimum and maximum amounts, installment start policy, eligible collateral types, required documents and the branches allowed to disburse. Every credit line is linked to one of fifteen Islamic contracts, and each contract has its own calculator. Murabaha, Qard al-Hasan, Ijara and Mudaraba are not calculated the same way, and the system does not treat them as if they were. A loan file moves along a defined path from application to settlement, and every financial step along the way has a voucher in the Financial Core.
Key capabilities
- 01Fifteen Islamic contracts, each with a dedicated calculator
- 02Solar Hijri installment schedules with a fixed day of the month and three profit distribution methods
- 03Repayments allocated to penalty, then profit, then principal, following the Central Bank of Iran's priority order
- 04Credit contract: credit top-ups, period statements and conversion of spending into installments
- 05Arrears classification with 2%, 25% and 100% provisioning
- 06Sixteen standard collateral types with versioned valuation
Product, contract and calculator
Each contract's behavior is defined by a few attributes: whether it is profit-bearing, whether it requires collateral, and whether late payment incurs a penalty. A credit line is built on top of a contract, and that contract's calculator works out the profit and installments. On a contract that is not profit-bearing, such as Qard al-Hasan, the profit rate stays at zero and the system will not accept any other rate.
- Credit lines with profit rate, penalty and origination fee
- Minimum and maximum amounts and authorized branches
- Required documents and eligible collateral types
Solar Hijri installment schedule
The installment schedule is generated at the moment the loan is disbursed, with due dates set on the Solar Hijri calendar and a fixed day of the month. Depending on how the credit line is defined, profit enters the schedule in one of three ways: collected upfront in cash, outside the installments; added to the first installment; or spread evenly across the installments, with any rounding remainder placed on the last one.
- Due dates on a fixed day of the Solar Hijri month
- Three profit distribution methods
- Loan file numbers built from branch and contract codes
Repayment, penalties and arrears
Each installment payment is allocated in the central bank's order of priority: penalty first, then profit, and principal last. The late-payment penalty accrues daily and is calculated every night for past-due installments. A credit line can include a grace period. Unpaid installments move the loan file through the arrears classes until it reaches written off, and loan-loss provisions are set aside at rates of 2%, 25% and 100%.
- Payment allocation: penalty, profit, principal
- Daily penalty with a grace period
- Classification as past due, overdue, doubtful or written off
Collateral and release
Sixteen standard collateral types are defined, from blocked deposits, Sayad cheques and promissory notes to real estate, vehicles and bank guarantees. Collateral valuations are versioned, so a new appraisal never erases the previous one. Collateral is released only when the status of the loan file allows it; if the status is unclear, the release request is rejected.
- Sixteen standard collateral types
- Versioned valuation
- Controlled release
One of the fifteen contracts is the credit contract, designed for buy now, pay later purchases. The customer makes purchases against their credit during the period, a statement is issued when the period ends, and the period's spending is automatically converted into installment financing with a Solar Hijri schedule.
For a full walkthrough from product definition to the installment schedule, see the article Islamic contracts in the Loan Product Builder.
Platform modules behind this solution
Financial Core
Financial Core
This module holds each company's chart of accounts, detail levels, vouchers and fiscal periods. The balance of every account is computed in real time from voucher lines, and every other module records its financial effect only by posting a balanced voucher to this core.
Qard al-Hasan Deposit
Finance & Payments
The deposit account cycle from opening to deposits, withdrawals, transfers, closing and reactivation. Fees, transaction reversal and account dormancy are also handled in this service.
Financing
Credit
The credit cycle from application to final settlement, based on Islamic financial contracts. Every transaction goes to the Financial Core as a balanced voucher, and financing data stays in its own database.
Collateral
Credit
Registration, valuation and management of collateral against financing or a credit line. It sends memorandum vouchers to the Financial Core for pledge and release, and checks coverage with the Financing service.
Scoring & Eligibility
Credit
A customer's credit limit is calculated from the behavior of the daily account balance, rather than from a manual estimate. The input is a daily snapshot of deposit or card balances, and the output is a score and a limit for the credit line.
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