Managing credit arrangements

View a credit arrangement

Once a credit arrangement is created, it will be displayed as a separate tab on the client or group Overview page (similar to the way a loan account is displayed). If you open the tab, you can see the credit arrangement details and a list of all the accounts managed under the credit arrangement. You can also add notes or change the credit arrangement parameters. Any changes made to the credit arrangement are captured and stored in the audit log, which is always accessible in the Activity tab.

The Details section of the credit arrangement tab includes the following information:

• Available Credit Amount for Original (approved) loan/overdraft amount
  • Calculated as: Credit Arrangement limit - ( Sum of all linked original loan amounts + Sum of all linked Overdraft Limits)
• Consumed Credit Amount for Original (approved) loan/overdraft amount
  • Calculated as: Sum of all linked original loan amounts + Sum of all linked Overdraft Limits
• Available Credit Amount  for Current (outstanding) loan/overdraft balances
  • Calculated as: Credit Arrangement limit - (Sum of all linked Loan Accounts Balances - Sum of all linked Overdrafts Balances)
• Consumed Credit Amount  for Current (outstanding) loan/overdraft balances
  • Calculated as: Sum of all linked Loan Accounts Balances - Sum of all linked Overdrafts Balances
• Approved Credit Amount - the sum of all loan and overdraft amounts of approved and active accounts linked to the credit arrangement.
• Accounts Summary - shows information of accounts linked to the credit arrangement.
• General information and Details - show detailed information about the credit arrangement parameters.
• State - shows the current state of the credit arrangement: Pending Approval, Approved, Active, or Closed. A credit arrangement moves to the Active state when accounts are added to it.
• Approval Date - the date when the credit arrangement was approved.

Edit a credit arrangement

Credit arrangements can be adjusted at any time, even after accounts are linked to them. For example, the credit arrangement Amount can be increased and the Valid Until date extended. The parameters of the credit arrangement can be edited by selecting the Edit button on the right-hand side of the screen.

Editing a credit arrangement allows you to change the following:

• Amount - the new amount can be higher, lower, or equal to the sum of total loan & overdraft amounts of accounts linked to the credit arrangement. When the credit arrangement amount is below the exposure limit, the available credit balance becomes negative. Any changes made to the credit arrangement limit will be logged in Mambu and can be viewed in the Activity tab.
• ID - can be changed at any time.
• Start Date - must be a date before the earliest disbursement / activation date across all the loan and overdraft accounts linked to the credit arrangement.
• End Date - must be a date after the latest maturity / overdraft expiry date across all the loan and overdraft accounts linked to the credit arrangement.

Reschedule or refinance accounts that are linked to a credit arrangement

Accounts that are linked to a credit arrangement can only be rescheduled or refinanced into a different product if the new product also allows for its accounts to be linked to a credit arrangement. As with any account, the balance, start date, and end date constraints (outlined in Adding accounts to a Credit Arrangement) need to be met.

The rescheduled or refinanced loan will remain linked to the original loan's credit arrangement.

Close a credit arrangement

Credit arrangements that are past their Valid Until dates no longer need to be closed. This option is only available for credit arrangements where every account linked to them is closed.

After a credit arrangement is closed, it will no longer be possible to add or remove accounts, edit, or delete it.

Closed credit arrangements will be displayed under the Closed Accounts tab in the client's profile.

Reopen a credit arrangement

Closed credit arrangements can be reopened at any time by users with the "Close Credit Arrangement" permission.

Delete a credit arrangement

A credit arrangement can only be deleted from the system if no accounts are associated with it. Once the accounts have been activated, the credit arrangement cannot be deleted.