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Create loan products

Use this guide to create your loan products. Before starting—or at any time in this process—if you need more foundational information about loan products, refer to Loan product overview.

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Using Control Center vs. API endpoints

You can use Control Center to create Buy Now, Pay Later (BNPL) loans only. Whenever the following steps mention using Control Center, it applies exclusively to BNPL loans.

Prerequisites

Before creating your loan product, you must set up the following:

Create repayment hierarchy

Use the repayment hierarchy to define the order that loan components are paid, such as principal, interest, fees, and so on. You can use Control Center or the API.

MethodDescriptionFor more information
Control CenterCreate processing codes for repayment and select them during loan creation (repayment processing codes types).Loan products
APIUse the Create repayment hierarchy endpoint.Create repayment hierarchy

When using the endpoint, your system sends a POST to /lending/v2/repayment-hierarchies with the following payload.

{
    "hierarchy_code": "HIERARCHY_001",
    "hierarchy": [
      "PRINCIPAL",
      "INTEREST",
      "TAX",
      "FEE",
      "CHARGE",
      "PENALTY",
      "INSURANCE"
    ]
}

How the request is structured:

ParameterDescription
hierarchy_codeSpecifies a unique identifier for the repayment hierarchy. Reference this code when creating a loan product to associate the hierarchy with that product.
hierarchyDefines the repayment priority order This array must include all seven components the order repayments are applied. In the previous example, repayments are applied to principal first, then interest, tax, fee, charge, penalty, and finally insurance.

Create interest plan

Create interest plans to define how interest is calculated and applied to loan products. You can use Control Center or the API.

MethodDescriptionFor more information
Control CenterYou must first create interest plans, then you can add them to your loan products in Control Center.To create interest plans, refer to Interest plans. To create loan products, refer to Loan products.
APIUse the Create interest plan endpoint.Create interest plan

When using the endpoint, your system sends a POST request to interest-engine/v1/interest/plan with a payload.

{
    "accrual_basis": "ACTUAL/365",
    "accrual_frequency": "DAILY",
    "capitalisation_frequency": "DAILY",
    "currency_code": "986",
    "description": "INTEREST PLAN FOR BNPL LENDING",
    "interest_type": "SIMPLE",
    "operation_type": "DEBIT",
    "fixed_interest_rate": 0.8,
    "start_date": "2025-09-17",
    "metadata": {
        "sample": "QUARTERLY"
    }
}

This endpoint generates an Interest plan created event.

Create a loan product

You’re ready to create a loan product. Whether you use Control Center or the API, you’ll find the steps you need in the associated guides and reference material.

MethodDescriptionFor more information
Control CenterUse the Control Center creation wizard to create your loan product.Loan products
APIUse the Create loan product endpoint.Create loan product

Scenario—Create a BNPL loan product

In this example, a BNPL loan is created in Brazilian Real (currency code 986). The loan product specifies a single lump-sum disbursement, and the loan becomes active as soon as it is booked.

{
    "product_name": "Complete BNPL with Prepayment info",
    "product_type": "BNPL",
    "processing_codes": {
        "booking": [
            "bookJ3V1H"
        ],
        "repayment": [
            "repayM7QR"
        ],
        "restructuring": [
            "restructure6YCZ"
        ],
        "present_value_discount": [
            "discount155V"
        ],
        "early_final_settlement": {
            "fee": [
                "efsMRT0"
            ]
        },
        "insurance": {
            "booking": [
                "insLP28"
            ],
            "repayment": [
                "insrepayGH39"
            ]
        },
        "disbursement": {
            "internal": [
                "internalFVVX"
            ],
            "external": [
                "externalPVTQ"
            ]
        },
        "prepayment": {
            "fee": [
                "prepaymentDRV0"
            ]
        }
    },
    "loan_activation_method": "ON_BOOKING",
    "currency": "986",
    "collateral": "NONE",
    "disbursement_method": {
        "type": "SINGLE"
    },
    "interest_plan_ids": [
        "712edbb8-5005-4f41-af95-dc2014f4045d"
    ],
    "repayment_hierarchy_code": "HIERARCHY_FEE_FIRST",
    "prepayment": {
        "penalty": {
            "type": "FIXED_AMOUNT", // PERCENTAGE or "FIXED_AMOUNT"
            "value": 20.0
        },
        "lock_in_period": 0, // optional, >= 0
        "reduce_option": [
            "INSTALLMENT",
            "TERM"
        ] // required, at least one
    },
    "early_final_settlement": {
        "penalty": {
            "type": "PERCENTAGE",
            "value": 0.1
        },
        "lock_in_period": 2
    }
}

After you create the loan product, the API response returns the product_id. Use this ID to book a loan.

{
    "product_id": "2717a296-124a-47cc-b2a1-91e80dc723eb"
}



Updated 4 days ago

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