The Consumer Lending Module of Oracle FLEXCUBE supports the following modes for loan disbursements:
If you select the mode ‘Auto’, the system will automatically disburse the loans based on the disbursement schedule defined for the product.
In the manual mode, disbursement happens on demand. In this case, disbursement schedules need not be maintained for the ‘PRINCIPAL’ component. Also, you can collect any applicable charges related to the disbursement at the time of making the disbursement. These charges are defined at the product level.
When a loan is disbursed either in the ‘manual’ or in the ‘auto’ mode, the system will utilize the collateral, collateral pool, facility, or liability only for the amount that is disbursed.
You have to specify the disbursement mode as a preference at the time of setting up a Consumer Lending product in the system.
Note
If you have selected the ‘Group/CIF’ status processing option at the branch parameters level and a manual disbursal results in a status change for the account, then the status change processing will be done only during the end-of-day batch processing. The process will work as follows:
Refer the section titled ‘Account Preferences Tab’ in the chapter titled “Defining Product Categories and Products’ of this User Manual for details.
This chapter contains the following sections:
This section contains the following topics:
You can initiate a manual disbursement through the ‘Manual disbursement’ screen You can invoke this screen by typing ‘CLDMNDSB’ in the field at the top right corner of the Application tool bar and clicking on the adjoining arrow button.
To begin the disbursement, click on the New icon in the toolbar of the screen. Enter the account number and click the ‘Default’ button. The system defaults the details based on product definition and the account maintained by the bank for the account. You can modify the relevant details.
Transaction Branch Code
The code of the login/sign-on branch is displayed here. However, you can select a different branch from the option list provided. It is the branch where the loan account of the customer resides.
Account Number
Select the Loan Account of the customer to which the disbursement is made. All valid accounts are available in the option list. Select the appropriate one from this list.
Event Sequence Number
The system displays the event sequence number of the current disbursement transaction..
Product Code
The system displays product code associated with the specified account number.
Product Description
The system displays description of the displayed product code.
Customer ID
The system displays ID of the customer holding the specified account number.
Customer Name
The system displays name of the displayed customer ID.
The following disbursement details have to be captured in the ‘Disbursement Details’ section of the screen:
Currency
The system displays the disbursement currency
Value Date
This is the date when the credit entry (for the disbursement amount) is posted to the Cr Settlement Bridge. The current system date is displayed here.
Execution Date
This is the date on which the disbursement is booked in the system. The current system date is displayed here. You may change the date to a date in the future before the maturity date of the loan.
Remarks
Capture any additional information about the disbursements, if required.
Total Amount
This displays the sum total of the amount disbursed across the various settlement modes. It gets incremented by the amount settled.
On saving the disbursement after entering all the required details in the system, the system validates the value of the amount to be disbursed against the following:
If the transaction currency and the limit currency are different, then the system converts the amount financed to limit currency and checks if the same is in excess of the product transaction limit and user input limit. If this holds true, the system indicates the same with below override/error messages:
Reference Number
The system displays the reference number which is used as a reference to identify the transaction in the system.
Amount Financed
The system displays the financed amount.
Amount Disbursed
The system defaults the amount disbursed.
Reversed
When you reverse a manual disbursement, the system automatically checks this option to denote that the particular settlement mode has been reversed.
For reversing a disbursal, a different event, REVD (Reverse Disbursement) is triggered.
Settlement Mode
You can make disbursements either through a single mode or by using multiple modes of settlement, depending on the customer’s requirement.
The settlement details that need to be captured depend on the mode you select. The list of modes and the applicable settlement details are given below:
Note
Atleast one mode is mandatory to make a disbursement.
Settlement Currency
After specifying the settlement mode for the disbursement, select the currency in which the disbursement is to be made. The currencies allowed for the branch are available in the option list provided.
Settlement Amount
Here, you have to capture the disbursement amount that is to be settled through the selected mode in the selected currency.
The ‘Total Amount’ gets incremented by the amount settled and displays the sum total of the amount disbursed across the various settlement modes.
Original Exchange Rate
The base or actual exchange rate between the account currency and settlement currency gets displayed here.
This information is applicable if the Mode Currency is different from the Loan Currency. The exchange rate that is defaulted from the Standard Exchange Rate Maintenance is used to convert the disbursement amount to the Loan Currency equivalent.
Refer the section titled ‘Exchange Rate Preferences’ in the ‘Defining Product Categories and Products’ chapter of this User Manual for details.
Exchange Rate
For a customer availing any Relationship Pricing scheme, the customer specific exchange rate derived by adding the original exchange rate and the customer spread maintained for the relationship pricing scheme gets displayed here.
If Relationship Pricing is not applicable, Exchange Rate will be the same as the Original Exchange Rate.
You can change the defaulted rate provided the change is within the variance level maintained for the underlying product.
For more details on customer specific exchange rates, refer the section titled ‘Specifying Pricing Benefit Details’ in Relationship Pricing user manual.
Settlement Currency Equivalent
As mentioned above, if the Mode Currency and Loan Currency are different, the system calculates the Settlement Currency equivalent using the exchange rate applicable for the currency pair.
Settlement Sequence
The system displays the sequence from the loan account based on the principal component settlement details. You can modify this value.
Note
The settlement sequence screen will be enabled for input only if the Payment Mode chosen is ‘Account’ else the settlement account will be defaulted from the Multi Mode Settlement Maintenance (ISDSRCMD).
Default Settlement
Click on this button to display the settlement message details. You can modify the default settlement details populated
Settlement Branch
The system displays the settlement branch.
Settlement Account
The system displays the settlement account number.
Account Description
The system defaults the account description when you click on the ‘Default’ button.
Issuing Branch
Specify the branch code of the bank issuing the instrument. Alternatively, you can also select the issuing branch from the option list. The list displays all valid branch codes maintained in the system.
Note
This field is applicable only for Settlement Modes, ‘Bankers Cheque’ and ‘Instrument’. The instrument number will be generated automatically from the inventory of the issuing branch for ‘Banker’s Cheque’ transactions.
External Account Number
Specify the external account number.
You can capture the additional settlement details by clicking the ‘Additional Settlement Details’ button under disbursement details.
You can specify the charge details associated with the disbursments by clicking on the ‘Compute Charges’ button.
Component Name
Specify the component name.
Settlement Mode
Select the settlement mode from the adjoining drop-down list. The options available are:
Settlement Currency
Select the settlement currency from the adjoining option list.
Settlement Amount
Specify the settlement amount.
Exchange Rate
Specify the exchange rate.
Settlement Currency Equivalent
Specify the settlement currency equivalent.
Settlement Branch
Select the settlement branch from the adjoining option list.
Settlement Account
Select the settlement account from the adjoining option list.
External Account
Specify the external account.
You can capture the additional settlement details by clicking the ‘Additional Settlement Details’ button under charge details..
External Account Number
Specify the external account number.
To every online event, you can associate check list items through the ‘Event Checklist’ screen. To view the check list items associated with the ‘Disbursement’ event (DSBR), click on the ‘Checklist’ button.
This screen displays the check list items for DSBR. All check list items have to be verified for successful disbursal of the loan. To do this, check the ‘Verified’ box against each check list item.
You may also capture any additional information/remarks, if required.
Click ‘OK’ button to Save and return to the ‘Manual disbursement’ screen.
You can enter values for the UDFs that you have associated with the DSBR event in the ‘Account Event UDF’ screen. To invoke this screen, click ‘Fields’ button in the ‘Manual Disbursement’ screen.
The system allows you to enter different values for the same UDF for events that gets repeated for the same loan account. For instance, if you have multiple disbursements for a Loan Account, you can capture different values for UDFs for different disbursements.
Click Exit button to exit and return to the ‘Manual disbursement’ screen.
You can view the advices defaulted which also includes the Payment Message in the ‘Advices’ screen. To invoke this screen, click ‘Advices’ button on the ‘Manual Disbursement’ screen.
You can opt to suppress the Payment Message defaulted in case you do not need a credit through swift message.
The defaulted details can be overridden at this stage and if the settlement mode is changed to anything other than CASA, the swift message is automatically suppressed.
System automatically suppresses the payment message under the following conditions:
If the Transfer Type is chosen as blank i.e, neither Customer Transfer nor Bank Transfer and if the Receiver is a bank and the credit settlement account is a current account then the PAYMENT_MESSAGE becomes CREDIT_ADVICE by Swift(MT910).
The swift message details are picked up from the Settlement Instructions maintenance and are displayed in the ‘Swift’ screen. To invoke this screen, click ‘Swift Message Details’ button on the ‘Manual Disbursement’ screen.
For more details on Swift message related details refer section ‘Capturing Swift Message Details’ in the chapter ‘Capturing Additional Details for a Loan’ in this User Manual.
You can view the LC contract using ‘Manual disbursement’ screen. To invoke this screen, type ‘CLSMNDSB’ in the field at the top right corner of the Application tool bar and click the adjoining arrow button.
You can click ‘Search’ button to view all the pending functions. However, you can to filter your search based on any of the following criteria:
Account Number
Select the account number from the option list.
Event Sequence Number
Select the event sequence number from the option list.
Authorized
Select the authorization status of the contract from the drop-down list.
Branch
Select the branch code for which you want to check the contract from the option list.
Reference Number
Select the reference number from the option list.
When you click ‘Search’ button the records matching the specified search criteria are displayed. For each record fetched by the system based on your query criteria, the following details are displayed:
Click ‘Advanced Search’ to display the screen below:
You can query a contract based on any of the following details:
After entering the details for manual disbursement in the ‘Manual Disbursement Input’ screen click Save icon to save the details.
For revolving loans, the sum of amount utilized and the amount to be disbursed should not be greater than amount financed. In case of open line loans, back value dated disbursements will be supported only for the current billing period.
For instance, the details indicated in the following table will result in error only for non-revolving loans:
Amount financed |
Amount disbursed |
Amount utilized |
Amount to be disbursed |
1,00,000 INR |
75,000 INR |
50,000 INR |
30,000 INR |
The above validations will happen during the utilization through the other channels wherein the CL accounts are available for debit.
In case of open line loans, the system will support the back value dated disbursements only for the current billing period.
To authorize the manual disbursement, click Authorize icon on the Application toolbar. The account authorization screen is displayed.
The Branch and Account number is defaulted and the Xref number is generated by the system. The following detail needs to be selected as required:
Message Generation
Check this box if you want swift messages to be generatedt either for the customer transfer or the bank transfer along with a cover. The generated message can be biewed in the messages browser. Even if the box is left unchecked you can go to messages browser at a later point of time and generate the message.
If the message generation fails for some reason, the account is authorized and you have to go to the browser to manually generate the swift message.
All other advices related to DSBR event are not generated at this point and you need to go to the message browser to do the same.
After the swift message has been generated, if the loan account or the manual disbursement is reversed, no message is sent from CL.
Note
You cannot authorise a transaction in the following cases:
During the disbursement event, the Loan Account is debited while the credit entry will depend on the settlement mode(s) selected for disbursal.
The entries will appear as follows:
Accounting Role |
Amount Tag |
Cr/Dr |
LOAN_ACCOUNT |
PRINCIPAL |
Dr |
CR_SETTL_BRIDGE |
PRINCIPAL |
Cr |