2. Bilateral Loans
This chapter contains the following sections:
- Section 2.1, "Loan Origination"
- Section 2.2, "Draft Proposal"
- Section 2.3, "Loan Drawdown"
- Section 2.4, "Rate Quotation"
- Section 2.5, "Loan Servicing"
Corporate Lending Process Management is a single integrated platform which enables to create and manage corporate loan accounts and focus on the corporate lending operations of a middle office branch. Corporate Lending Middle Office module supports the following lifecycle.
- Loan Origination
- Loan Drawdown
- Draft Proposal
- Rate Quotation
- Servicing
- Rollover
- Loan Amendment (Non-Financial)
- Financial Amendment
- Loan Payment
OBCLPM uses Netflix Conductor workflow orchestration engine for defining the business process. The capture and enrichment of information in multiple steps can be dynamically assigned to different user profiles or roles. The Platform provides capability to associate different business process flow definitions to different category of Applications and also enables.
- Advice Generation
- Map Documents and Checklist for Various stages
The Platform also aids to enhance the productivity through queries and dashboard widgets providing a quick insight into the Application process stage and the status of the existing Loans.
2.1 Loan Origination
Loan Origination process provides a facility to create Corporate Loan taking the application through various stages of the business process flow commencing from loan request initiation till loan account creation/handoff and disbursement based on the Application Category.
The process of corporate loan origination is initiated by the Relationship Manager (RM) (or users with relevant rights) on behalf of an existing or a prospective customer. Based on the nature of the financing requirement the system can be configured to initiate the relevant Business process flow. For instance the Corporate Customer/Company may approach the bank for its credit needs related to working capital, expansion or for Trade financing through various channels like branch, mail or through external agents. The platform also enables the initiation of a Loan Request via Customer direct Banking channel through the REST based Service APIs. The Platform has a predefined Netflix Conductor process flow following a typical corporate loan initiation process. However this can be modified to suite the Bank's requirements.
The list of stages that are required for a Loan origination process will be pre-defined in Netflix Conductor process and the data segments that are applicable for every stage can be configured in Application Category maintenance. Based on this setup, system derives the process flow for every loan application.
This is a sample Loan Origination flowchart provided for quick reference.
The process flow pre-defined for Loan Origination is provided for quick reference:
- Application Entry
- Application Enrichment
- Credit Exception
- Price Negotiation
- Application Verification
- Legal Verification
- Loan Approval
- Customer Acceptance
Netflix Conductor process will drive the flow from one stage to another based on the combination of attribute value and process outcome combination. Following attributes are validated as part of Netflix Conductor process for Loan origination life cycle:
- KYC Required
- CAMS Initiation Required
- Credit Appraisal Required
- Facility Creation Required
- Price Negotiation Required
- Legal Approval Required
- Customer Acceptance Required
- Loan Amount
- Loan Currency
Initiating Loan Origination
The basic registration details to create a corporate loan for a prospective borrower can be initiated using this initiation screen, provided the user has the required access rights.
How to reach here:
Corporate Lending > Operations > Loan Origination
How to initiate a loan origination:
- In the Loan Origination screen, provide the required details:
Basic Details
- Customer Type: Select one of the options:
- New: If selected, applicant details can be captured as part of loan creation.
- Existing: If selected, system defaults the applicant related details in the respective data segments.
- Lead/Prospect Number: Click Search to view and select the required Lead/Prospect number. This will help to determine if the loans are given under any back scheme.
- Proposal Number: Click Search to view and select the required proposal number. These provide the list of proposal given to a customer via Draft Proposal Process. Once selected the completed application of draft proposal will be displayed to choose one application. Once selected all the data segment applicable to the current application will be default the value form Draft proposal.
- Business Product: Click Search to view and select the required business
product. Based on the business product system derives the following details
to process the loan application:
- Applicable stages and its data segments
- Required documents and checklists
- Stage level advices
- Customer Number: Click Search to view and select the required Customer Identification number or you can also type the Customer Number. This field is applicable only when the Customer Type is selected as Existing.
- Customer Name: Based on the Customer Number selected, the information is auto-populated.
- Loan Purpose/Intent: Click Search to view and select the required loan purpose/intent.
- Application Date: Select an effective application date from the dropdown calendar. The system defaults the current system date as the application initiation date.
- Priority: Select a priority from the dropdown list.
Facility Details
Displays the list of all facilities that are created for the Customer Number. You can select the appropriate Facility ID which requires to be linked for the loan.
Channel Details
- Application Channel: Click Search to view and select the required application channel.
- Application Submitted By: Select the details of the Agent/Customer who has submitted the application from the dropdown list.
- Name: Enter the name of the Agent/Customer who has submitted the application.
- Email: Enter the Email ID of the Agent/Customer who has submitted the application.
- Click Initiate to begin the process.
On submit of the screen, a unique Application Registration number will be auto generated by the system, which are used throughout the process and for further tracking. For an application, based on application category viz. Term Loan, Pre-shipment Finance, Post-shipment Finance, Project Financing, Working Capital and so on. System will derive the process flow for Loan Origination and the process will get instantiated.
Based on the user rights the system will navigate the user to the first manual stage of the process flow.
2.2 Draft Proposal
Draft Proposal process facilitate to create a prospect or lead Corporate Loan which a customer may want by for the various financing requirements. A customer would like to check his eligibility, basic details and the structure of the loan which can be catered via Draft Proposal. This process also defines the basic terms and condition on which a customer can avail loan from bank or a draft version of loan details. This process commence from Draft Proposal initiation till the draft advice is sent to customer for various Application Category.
The process of Draft Proposal can be initiated by the Relationship Manager (RM) (or users with relevant rights) on behalf of an existing or a prospective customer. Based on the nature of the financing requirement the system can be configured to initiate the relevant Business process flow. For instance the Corporate Customer / Company may approach the bank for its credit needs related to working capital, expansion or for Trade financing through various channels like branch, mail or through external agents. The platform also enables the initiation of this process via Customer direct Banking channel through the REST based Service APIs. The Platform has a predefined Netflix Conductor process flow following a typical corporate loan process. However this can be modified to suite the Bank's requirements.
The list of stages pre-defined for the Draft Proposal are:
- Application Entry
- Application Enrichment
- Verification
- Credit Appraisal
- Draft Approval
- Customer Acceptance
Netflix Conductor process will drive the flow from one stage to another based on the combination of attribute value and process outcome combination. Following attributes are validated as part of Netflix Conductor process for In- principle Approval life cycle:
- Credit Appraisal Required
- Customer Agreement Required
- Loan Amount
- Loan Currency
Initiating Draft Proposal
The basic registration details to create a draft Approval for a prospective borrower can be initiated using this Initiation Screen, provided the user has the required access rights.
How to reach here:
Corporate Lending > Operations > Draft Proposal
How to Initiate a draft proposal:
- In the Draft Proposal screen, provide the required details:
- Lead/Prospect Number: Click Search to view and select the required Lead/Prospect number. This will help to determine if the loans are given under any back scheme.
- Business product: Click Search to view and select the required Business
product. Based on the Business product, system derives the following
details to process the loan application:
- Applicable stages and its data segments
- Required documents and check lists
- Stage level advices
- Application Date: Select an effective application date from the drop-down calendar. The system defaults the current system date as the application initiation date.
- Loan Purpose/Intent: Click Search to view and select the required loan purpose/intent.
- Priority: Select a priority from the drop-down list.
Channel Details
- Application Channel: Click Search to view and select the required application channel.
- Application Submitted By: Select the details of the Agent/Customer who has submitted the application from the dropdown list.
- Name: Enter the name of the Agent/Customer who has submitted the application.
- Email: Enter the Email ID of the Agent/Customer who has submitted the application.
- Click Initiate to begin the process.
On submit of the screen, a unique Application Registration number will be auto generated by the system, which are used throughout the process and for further tracking. Based on application category viz. Term Loan, Pre-shipment Finance, Post-shipment Finance, Project Financing, Working Capital and so on. System will derive the process flow for In Principal Approval and the process will get instantiated.
Based on the user rights the system will navigate the user to the first manual stage of the process flow.
2.3 Loan Drawdown
Loan Drawdown provides function to drawdown the required loan amount for an existing customer. Once the facility is set a corporate customer would like to avail the loan form the back from the existing facility, Application will pass through various stages of the business process flow commencing from Drawdown initiation till loan account creation/handoff and disbursement based on the Application Category.
The process of corporate loan origination is initiated by the Relationship Manager (RM) (or users with relevant rights) on behalf of an existing or a prospective customer. Based on the nature of the financing requirement the system can be configured to initiate the relevant Business process flow. For instance the Corporate Customer/Company may approach the bank for its credit needs related to working capital, expansion or for Trade financing through various channels like branch, mail or through external agents. The platform also enables the initiation of a Loan Request via Customer direct Banking channel through the REST based Service APIs. The Platform has a predefined Netflix Conductor process flow following a typical corporate loan initiation process. However this can be modified to suite the Bank's requirements. The list of stages that are required for a Loan origination process will be pre-defined in Netflix Conductor process and the data segments that are applicable for every stage can be configured in Application Category maintenance. Based on this setup, system derives the process flow for every loan application.
The process flow pre-defined for Loan Origination is provided for quick reference:
- Application Entry
- Application Enrichment
- Credit Exception
- Price Negotiation
- Application Verification
- Legal Verification
- Loan Approval
- Customer Acceptance
Netflix Conductor process will drive the flow from one stage to another based on the combination of attribute value and process outcome combination. Following attributes are validated as part of Netflix Conductor process for Loan origination life cycle:
- KYC Required
- CAMS Initiation Required
- Credit Appraisal Required
- Legal Approval Required
- Customer Acceptance Required
- Loan Amount
- Loan Currency
- Loan Currency
Initiating Loan Drawdown
The basic registration details to create a draft Approval for a prospective borrower can be initiated using this Initiation Screen, provided the user has the required access rights.
How to reach here:
Corporate Lending > Operations > Drawdown
How to drawdown a loan:
- In the Drawdown screen, provide the required details:
- Customer Number: Click Search to view and select the required Customer Identification number or you can also type the Customer Number. This field is applicable only when the Customer Type is selected as Existing.
- Customer Name: Based on the Customer Number selected, the information is auto-populated.
- Business product: Click Search to view and select the required Business
product. Based on the Business product, system derives the following
details to process the loan application:
- Applicable stages and its data segments
- Required documents and checklists
- Stage level advices
- Application Date: Select an effective application date from the dropdown calendar. The system defaults the current system date as the application initiation date.
- Loan Purpose/Intent: Click Search to view and select the required loan purpose/intent.
- Priority: Select a priority from the dropdown list.
Facility Details
Displays the list of all facilities that are created for the Customer Number. You can select the appropriate Facility ID which requires to be linked for the loan.
Channel Details
- Application Channel: Click Search to view and select the required application channel.
- Application Submitted By: Select the details of the Agent/Customer who has submitted the application from the dropdown list.
- Name: Enter the name of the Agent/Customer who has submitted the application.
- Email: Enter the Email ID of the Agent/Customer who has submitted the application.
- Click Initiate to begin the process.
On submit of the screen, a unique Application Registration number will be auto generated by the system, which are used throughout the process and for further tracking. Based on application category viz. Term Loan, Pre-shipment Finance, Post-shipment Finance, Project Financing, Working Capital and so on. System will derive the process flow for In Principal Approval and the process will get instantiated.
Based on the user rights the system will navigate the user to the first manual stage of the process flow.
2.4 Rate Quotation
In Rate Quotation RM receives request from the client to inquire current Cost of Fund interest rate (COF) so that client can book or avail the loan if required. These rates are generally available with treasury department of the banks. Once the rate is sourced he will block the rate with the treasury and send notification to client confirming the cost of funds rate. Once confirmed by client, RM will proceed to originate the loan.
The process of corporate loan origination is initiated by the Relationship Manager (RM) (or users with relevant rights) on behalf of an existing or a prospective customer. Based on the nature of the financing requirement the system can be configured to initiate the relevant Business process flow. For instance the Corporate Customer/Company may approach the bank for its credit needs related to working capital, expansion or for Trade financing through various channels like branch, mail or through external agents. The platform also enables the initiation of a Loan Request via Customer direct Banking channel through the REST based Service APIs. The Platform has a predefined Netflix Conductor process flow following a typical corporate loan initiation process. However this can be modified to suite the Bank's requirements. The list of stages that are required for a Loan origination process will be pre-defined in Netflix Conductor process and the data segments that are applicable for every stage can be configured in Application Category maintenance. Based on this setup, system derives the process flow for every loan application.
The process flow pre-defined for Loan Origination is provided for quick reference:
- Application Entry
- Application Enrichment
- Customer Acceptance
- Initiate Drawdown
CONDUCTOR process will drive the flow from one stage to another based on the combination of attribute value and process outcome combination. Following attributes are validated as part of CONDUCTOR process for Loan origination life cycle:
- Existing Customer
- Customer Acceptance Required
- Loan Amount
- Loan Currency
Initiating Rate Quotation
The basic details to request for servicing of a corporate loan for a borrower can be initiated using this Initiation screen, provided the user has the required access rights.
How to reach here:
Corporate Lending > Operations > Rate Quotation
How to initiate a rate quotation:
- In the Rate Quotation Initiation screen, provide the required details:
- Customer Number: Click Search to view and select the required Customer Identification number or you can also type the Customer Number. This field is applicable only when the Customer Type is selected as Existing.
- Customer Name: Based on the Customer Number selected, the information is auto-populated.
- Business Product: Click Search to view and select the required Business
product. Based on the Business product, system derives the following
details to process the loan application:
- Applicable stages and its data segments
- Required documents and checklists
- Stage level advices
- Application Date: Select an effective application date from the dropdown calendar. The system defaults the current system date as the application initiation date.
- Loan Purpose/Intent: Click Search to view and select the required loan purpose/intent.
- Priority: Select a priority from the dropdown list.
Facility Details
Displays the list of all facilities that are created for the Customer Number. You can select the appropriate Facility ID which requires to be linked for the loan.
Channel Details
- Application Channel: Click Search to view and select the required application channel.
- Application Submitted By: Select the details of the Agent/Customer who has submitted the application from the dropdown list.
- Name: Enter the name of the Agent/Customer who has submitted the application.
- Email: Enter the Email ID of the Agent/Customer who has submitted the application.
- Click Initiate to begin the process.
On submit of the screen, a unique Application Registration number will be auto generated by the system, which are used throughout the process and for further tracking. Based on application category viz. Term Loan, Pre-shipment Finance, Post-shipment Finance, Project Financing, Working Capital and so on. System will derive the process flow for In Principal Approval and the process will get instantiated.
Based on the user rights the system will navigate the user to the first manual stage of the process flow.
2.5 Loan Servicing
Loan Servicing provides a facility to manage various life cycle events of a corporate loan account after drawdown process is complete. Following actions are possible under servicing:
- Loan Rollover
- Financial Amendment
- Non-Financial Amendment
- Loan Payment
Rollover denotes the renewal of a loan. The outstanding principal of the loan is rolled over with or without outstanding interest for an extended maturity date.
With Financial amendment user can initiate changes to following loan parameters:
- Additional disbursement of Principal
- Changes to interest details
- Increase or Decrease of Maturity date
Non-financial amendments include changes to:
- Credit line and Collaterals
- Payment Schedule
Loan Payment option enables the user to make pre-payment, partial payment, or repayment towards the existing loan contract.
The process of Corporate loan servicing gets initiated when the bank RM approaches a customer to improve his loan status or when the customer approaches the bank requesting for any of the above servicing options based on his corporate needs. The loan servicing process moves forward only based on the customer interest.
List of stages and corresponding data segments can be configured.
The list of stages pre-defined for the Loan servicing are:
- Application Entry
- Enrichment
- Loan Approval
Initiating Loan Servicing
The basic details to request for servicing of a corporate loan for a borrower can be initiated using this Initiation screen, provided the user has the required access rights.
How to reach here:
Corporate Lending > Operations > Servicing
On click of Advanced Search, users can provide further details to search for a loan contract as illustrated:
How to restructure a loan:
- User can select an appropriate servicing operation - Financial Amendment, Non-financial Amendment, Rollover, or Payment.
- In basic search user can search based on customer or facility code to choose a contract that needs to be serviced.
- Customer Number: The LOV attached to this field will list the customer available
- Facility Code: The LOV attached to this field will list the facility codes in the system.
- On click of the search button, system will list the contracts that meets the search criteria for the user to choose a contract number. Advanced search option can be activated using the toggle in the search bar where the user can additionally search based on Loan start and end dates or the Loan currency and amount.
After selecting a contract system populates the appropriate business product applicable for the loan contract. Users can choose a business product and the value date for the changes to be effective.
On click of initiate, a unique Application Registration number will be auto generated by the system, which are used throughout the process and for further tracking. Based on servicing type selected, system will derive the process flow for Loan servicing with the configured list of data segments and the process will get instantiated.
Based on the user rights the system will navigate the user to the first manual stage of the manual stage of the process flow.