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A credit arrangement is the maximum amount a borrower can take out in loans and overdraft facilities. A borrower may have multiple credit arrangements, each linked to specific loans and overdraft accounts. Each credit arrangement can have its own constraints, including maximum credit exposure amount and validity dates.
Mambu offers several options to customise credit arrangements to meet specific lending requirements, such as setting up loan periods, grace periods, and repayment schedules.
With the latest release from our Lending Engine, credit arrangements can now be created in any currency other than the base currency of the organisation. For example, a company with a base currency in Euros, can create credit arrangements in US Dollars and associate loan accounts and overdrafts in US Dollars to the credit arrangement.
Learn more about how to create a new credit arrangement or adding accounts to a credit arrangement in Mambu’s support documentation.