Policies are predefined rules and configurations that govern the behavior of accounts, lines of credit, and installment loans throughout their lifecycles.
Policies range from how interest is calculated to if a loan enters a post-maturity period and everything in between. Policies can also govern how a line or loan is secured with collateral.
These policies are codified during template creation, when an account, line of credit, or loan is created, it references a specific template ID, inheriting and enforcing the associated policies. This modular approach ensures consistency, scalability, and flexibility, allowing lenders to tailor financial products to specific needs while maintaining centralized control over their behavior and compliance requirements.