Contents
1. About this Manual
1.1 Introduction
1.2 Audience
1.3 Organization
1.4 Documentation Accessibility
1.5 Related Documents
1.6 Glossary of Icons
2. Loans - An Overview
2.1 Introduction
2.1.1 The Product Definition Facility
2.1.2 Methods of Interest Application
2.1.3 Flexible Repayment Schedule Set Up
2.1.4 Defining Grace Periods
2.1.5 Rolling Over a Loan
2.1.6 Tracking the Status of a Loan
2.1.7 Tax Types that are Supported
2.1.8 Automatic Processing of Different ‘Events’
2.1.9 Penalties on Pre-Payment
2.1.10 Value Dated Amendments
2.1.11 Retrieving Information
2.1.12 About Banker's Acceptance
2.1.13 About Exponential Interest
3. Maintaining Details Specific to SLT
3.1 Introduction
3.2 Maintaining User Groups
3.3 Maintaining Diary Events
3.4 Maintaining Message Types for a Module
3.4.1 Maintaining User-Defined Field Tags
3.5 Associating Message Types to Events for a Module
3.5.1 Associating Diary Events
3.5.2 Specifying Diary Events for a Contract
3.5.3 Generating Messages for Diary Events
3.6 Maintaining Market Price Details
3.7 Free Format Messages for Loan Contracts
3.7.1 Free Format Messages to Multiple Borrowers
4. Defining Attributes Specific to Loan product
4.1 Introduction
4.1.1 Specifying Product Type
4.1.2 Creating a Commitment Product
4.2 Setting Product Preferences
4.2.1 Specifying the Payment Method
4.2.2 Indicating the Schedule Type
4.2.3 Setting Billing Notice Days
4.2.4 Specifying Grace Days to Penalty
4.2.5 Indicating Values to be Rekeyed during Authorization
4.2.6 Setting the Accrual Frequency
4.2.7 Specifying Tenor Related Details
4.2.8 Specifying Exchange Rate Variance
4.2.9 Specifying if Status Processing for Contract Schedules is Required
4.2.10 Specifying Interest Details
4.2.11 Specifying Additional Preference
4.2.12 Identifying the Rate Code to be Used for Loans in Foreign Currency
4.2.13 Indicating the Rate Type
4.2.14 Open Line Loan Details
4.2.15 Holiday Preferences tab
4.2.16 Other Preferences tab
4.2.17 Identifying Products for Agency Contract Creation
4.2.18 Specifying the Reversal Transaction Type
4.2.19 Discounting Multiple Schedules for Discounted Loans
4.2.20 Indicating the Annual Effective Rate (TEA) for loans
4.2.21 Enabling the Customer Effective Loan Rate Option
4.2.22 Allowing Forward Dating
4.2.23 Prioritizing the Liquidation of Components
4.2.24 Tracking Status Changes for Loans
4.2.25 Maintaining the Disclosure Details
4.2.26 Mapping the Product to Disclosure Details
4.2.27 Specifying the Special Penalty Components
4.2.28 Maintaining UDFs
4.2.29 UDF Upload
4.3 Maintaining Financial Operations Tax (IOF)
4.4 Maintaining Slab/Tier Based Spread on Loan Outstanding
4.4.1 Specifying Contract Details
4.4.2 Specifying Currency Details
4.4.3 Specifying Effective Date
4.4.4 Specifying the Spread Details
4.4.5 Impact of Loan Outstanding on Spread
4.5 Specifying the Logic for Currency Rounding
4.6 Applying Tax on Liquidated Principal
4.7 Classification of General Ledgers based on Transaction Codes
4.8 Maintaining Pool Fund Details
4.9 Identifying a Component as a Refinance component
4.9.1 Capturing the Reversal Transaction Type
4.10 Maintaining 1098 Parameters
4.10.1 Generating ASCII File
4.10.2 Generating 1098 Forms
4.11 Maintaining positive and negative threshold residual limit amount
4.12 Maintaining Currency Days
5. Disbursing a Loan
5.1 Introduction
5.1.1 Invoking the Loan Disbursement Screens
5.2 Capturing Loan Disbursement Details
5.2.1 The Facility Name
5.2.2 Specifying the LC Sublimit Amount
5.2.3 Contra GL Balance Details
5.2.4 Net Outstanding Amt
5.2.5 Current Exposure Details
5.2.6 Specifying the Currency
5.2.7 Specifying the Loan Amount
5.2.8 Specifying the Line Code
5.2.9 Specifying the Settlement Account
5.2.10 Specifying the Related Reference Number
5.2.11 Capturing Details of Amendments to Loan Agreements
5.2.12 Specifying the Tenor
5.2.13 Last Availability Date
5.2.14 Specifying the Loan Status
5.2.15 The Payment Method
5.2.16 Specifying the Maturity Type
5.2.17 Banker’s Acceptance
5.2.18 Specifying the ICCF Details
5.2.19 Allowing Rollover
5.2.20 Viewing Messages using Message Preview
5.2.21 Specifying Preferences Tab
5.2.22 .Identifying an Agency Contract
5.2.23 Rollover Count
5.2.24 Confirming the Status of Loan Products
5.2.25 Tax Scheme
5.2.26 Entering Internal Remarks
5.2.27 Enabling the Reprogramming Counter
5.2.28 Enabling Auto Extension
5.2.29 Enabling Residual Amount Liquidation
5.2.30 Indexed Loans
5.2.31 Interpolation
5.3 Preferences for a Loan
5.3.1 Setting Loan Schedule Preferences
5.3.2 Disbursing Loan through the ‘Manual’ Mode
5.3.3 Disbursement Schedules tab
5.3.4 Viewing Manual Disbursement
5.3.5 Re-computing Late Payment Charges Online
5.3.6 Processing the Late Payment Charges
5.3.7 Maintaining System Derived Schedules
5.3.8 Maintaining User Input Schedule Amounts
5.3.9 Maintaining Schedule Adjustments on Interest Rate Revision
5.3.10 Maintaining previous interest rate
5.3.11 Maintaining Schedule Adjustments on Prepayment
5.3.12 Re-Amortization
5.4 Linking a Loan to Commitments
5.4.1 Specifying the Type of Linkage
5.4.2 Specifying the Details of the Linkage
5.4.3 Projected Available Amount
5.4.4 The Exchange Rate
5.4.5 Specifying the Linked Amount
5.4.6 Linking a Loan in One Branch to a Commitment in another Branch
5.4.7 Linking Commitments to a Loan
5.4.8 Linking OL contract to a facility or multiple collateral/pool
5.4.9 Modifying a Loan Disbursement
5.4.10 Financial Details that can be Changed
5.4.11 Viewing the Other Details of a Loan
5.4.12 Advices for Loan Disbursement
5.5 Levying Transaction Charges on a Loan
5.6 Posting the Manual Journal Entries
5.6.1 Maintaining the Amount Types
5.6.2 Mapping the Accounts and the Amount Type
5.6.3 Posting Manual Adjustment Entry
5.6.4 Uploading Excel for Adjustment Entry Posting
5.7 Uploading Loan Contracts through OL Upload Screen
5.8 Error Log Details
5.9 Viewing Event Details
5.9.1 Viewing Accounting Entries for Loan disbursement
5.10 Levying Tax on a Loan Contract
5.11 Specifying the Interest Details
5.12 Maintaining Transaction-specific MIS Refinancing Rates
5.12.1 Maintaining Contract Level Refinance Rates
5.13 Maintaining Overwrite Settlement Details
5.14 Viewing Effective Rate (ER) of Interest for a Loan
5.15 Interest Rates History
5.16 Repayment Details
5.17 Changing the Status of a Loan
5.18 Maintaining Status Code
5.19 Enquiry for Interest and Principal Projections
5.19.1 Reversal of Accruals during Contract Reversal
5.20 Viewing the Settlement Details during Contract Authorization
5.21 Viewing the Different Versions of a Loan
5.22 Viewing the Accrual Fee Details for a Loan
5.23 Viewing Entity Details
5.24 Viewing the Effective Interest Details for a loan
5.25 Specifying the Installment Preferences for a Loan
5.26 Capturing customer relationships for every loan
5.26.1 Capturing Currency Sub-limits
5.27 Specifying the Special Penalty Components
5.28 Maintaining Floor and Ceiling Initial Details
5.28.1 Specifying Currency Details
5.28.2 Specifying Effective Date
5.29 Booking Re-Price Transactions
5.29.1 Child Re-Price Transaction (Split)
5.29.2 Authorizing Override for Split Re-Pricing
5.29.3 Fixing Rate during Reprice
5.29.4 Floating Periodic Manual Contracts
5.30 Consolidating Re-Price Transactions
5.31 Maintaining Loan Loss Reserve
5.32 Amending the Exchange Rate
5.32.1 Exchange Rate Details
5.33 Classifying LC Sublimit
5.33.1 Updating LC Sublimit HFS Balance
5.33.2 Updating LC Sublimit HFI Balance
5.34 Maintaining Special Penalty Component Waiver Details
5.34.1 Reversing the Waiver of Late Payment Charges
5.35 Viewing the Waiver Details of Special Penalty Components
5.36 Maintaining Floor and Ceiling Details
5.36.1 Specifying Currency Details
5.36.2 Specifying Effective Date
5.36.3 Processing All-In Rate Floor and Ceiling rates
5.36.4 Validating and Propagating Base Rate/All-In Rates
5.36.5 Base Rate Validation And Propagation For Rollover Transactions
5.36.6 Manual Linking of Standalone Loans with Commitments
5.36.7 All-In Rate/Base Rate Batch Propagation
5.37 Specifying the Disclosure Schedule Details
5.38 Viewing the Contract Disclosure Schedule Status Details
5.39 Viewing Summary Details of a Loan
5.40 Dual Authorization
5.40.1 Relaxing Dual Authorization
5.41 Multi-level Authorization
5.42 Simulating Loans
5.42.1 Loan- Contract Simulation for Active Contract
5.42.2 Loan- Contract Simulation for Inactive Contract
5.42.3 Viewing Summary Details for Inactive Contracts
5.42.4 OL Processing in LMA / LSTA Participation
6. Processing Upfront Fee Accruals
6.1 Introduction
6.2 Applying a Fee
6.2.1 Associating the Component with the Product
6.2.2 Specifying the Accounting Roles
6.2.3 Specifying Discount Accrual
6.2.4 Specifying Re-Price
6.2.5 Processing Lock-ins
6.2.6 Generating Fee Accrual reports
6.3 FASB Fees Amortization Using Straight Line Method
6.3.1 Maintaining Fee Rule Details
6.3.2 Associating Fee at Contract Level
6.4 Liquidating Fee Components
6.5 Transferring Memo Interest to FAS91 Fee
6.5.1 Restarting Amortization Fee Accrual
6.5.2 Associating the Accrual Fee Component
7. Defining Discount Accrual Fee Classes
7.1 Introduction
7.2 Defining a Discount Accrual Fee class
7.2.1 Associating Discount Accrual Components to Products
7.3 Events and Accounting Entries for Discount Accrual
7.4 Specifying Status Change Details for Discount Accrual
7.4.1 Processing for Contract Status Change
7.5 Processing for Internal Rate of Return Calculation
7.5.1 Recalculation of IRR with new effective date
7.5.2 Computation of Net Present Value based on Acquisition Type
7.5.3 Computation of Net Discount Accrual Amount for a Processing Day
7.5.4 Discount Accrual Processing - an Example
8. Processing Repayments
8.1 Introduction
8.2 Defining Schedules for a Product
8.3 Setting Product Schedule Preferences
8.3.1 Processing Overpayment and Refund of Interest/Fees
8.4 Defining Repayment Schedules
8.5 Pay Receivable Upload
8.6 Principal Schedule Upload
8.7 Setting Loan Schedule Preferences
8.8 Specifying the Preferences of the Contract
8.8.1 Types of Repayment Schedules
8.8.2 Defining Installment Schedules for Loans
8.8.3 Specifying the Amortization Type
8.8.4 Liquidating Back Valued Schedules
8.8.5 When the Repayment Schedule Date is a Holiday
8.8.6 Moving Schedules Forward or Backward
8.8.7 Moving Schedule Dates across the Month
8.8.8 Cascading Schedules
8.8.9 Specifying the Holiday Currency
8.8.10 Specifying the Mode of Liquidation
8.8.11 Ascertaining the Availability of Funds
8.8.12 Invoking the Contract Schedules Screen
8.9 Revision and Repayment Schedules
8.9.1 Interest Rate Revision Schedule
8.9.2 Specifying the Rate Revision Frequency
8.9.3 Specifying the Rate Revision Dates
8.9.4 Repayment Schedule
8.9.5 Interest Repayment Schedules
8.9.6 Specifying Schedules for a Loan with a Fixed Interest Rate
8.9.7 Redefining Schedules
8.9.8 Authorizing a Redefined Schedule
8.9.9 Viewing Schedule Details
8.9.10 Viewing Revision Schedule Details
8.10 Making Manual Payments
8.10.1 Invoking the Contract Schedule Payments Screen
8.10.2 Input of Manual Payments
8.10.3 Specifying Prepayment Schedule Processing
8.10.4 Handling Prepayments
8.10.5 Specifying Residual Liquidation Entries
8.10.6 Navigating to Other Screens
8.10.7 Paying Tax
8.10.8 Viewing the Schedule Break-up Details
8.10.9 Viewing Messages using Message Preview
8.10.10 Deleting Manual Payments
8.10.11 Authorizing Manual Payments
8.10.12 Reversing Manual Payments
8.10.13 Marking Contract as Active
8.10.14 Marking Contracts as Liquidated
8.11 Simulating Payments
8.12 Processing a Loan Payment when Contra Accounting is Applicable
8.12.1 Events for Contra Accounting
8.12.2 Processing Principal Payment
8.12.3 Processing Interest Payment
8.12.4 Increasing/Decreasing Contra GL Balance
9. Rolling-over a Loan
9.1 Introduction
9.2 Features of the Product Roll-over Details Screen
9.2.1 Specifying whether Rollover is Applicable
9.2.2 Specifying the Rollover Mechanism
9.2.3 Specifying the Rollover Method
9.2.4 Mode of roll-over
9.2.5 Roll-over of Interest, Charge and Fee Components
9.2.6 Maximum Allowed Rollover
9.2.7 Maturity Date Basis
9.2.8 Applying Tax on Roll-Over
9.2.9 Deduct tax on Roll-Over
9.2.10 Contingent Entries for Additional Amount
9.2.11 Applying a Charge on the Roll-Over Amount
9.2.12 Liquidating Overdue Schedules
9.2.13 Interest Rate on Rollover
9.2.14 Indicating the Values to be Re-keyed during Authorization
9.3 Specifying Contract Roll-Over Details
9.3.1 Rollover Preferences for a Loan Contract
9.4 Specifying Details for Normal Rollover
9.4.1 Mode of Roll-Over of a Contract
9.4.2 Manual Rollover
9.4.3 Specifying the Roll-Over Amount
9.4.4 Specifying the Manner in which the Special Amount should be Treated
9.4.5 Applying Tax
9.4.6 Specifying Charge to be Applied on the Rolled-over Amount
9.4.7 Specifying the Schedule Basis for the rolled over contract
9.4.8 Specifying whether New Components have to be Included
9.4.9 Specifying whether Overdue Schedules should be liquidated
9.4.10 Specifying the Maturity Type
9.4.11 Indicating the Interest Basis for Roll-over
9.4.12 Specifying the Refinancing Rate for the rolled over Contract
9.5 Specifying Details for Rollover Split
9.5.1 Specifying Details for Rolled Over Contracts
9.6 Specifying Details for Rollover Consolidation
9.6.1 Loan Rewrite using Consolidated Rollover
9.7 Advices for a Rolled-Over Loan
9.8 Authorizing a Manual Roll-Over
10. Making Additional Disbursements and Rate Changes
10.1 Introduction
10.1.1 Changing the Maturity Date
10.1.2 Enabling the Reprogramming Counter
10.1.3 Interest Refund Required
10.1.4 Spot Rate
10.1.5 Capturing details of amendments to loan agreements
10.2 Navigating to different tabs in Value Dated Amendment screen
10.2.1 Applying Rate Revision Schedules
10.2.2 Making Changes in Interest
10.2.3 Making Changes in Interest Rate Type
10.2.4 Making Changes in Maturity Type
10.2.5 Making Changes in Special Rate Type
10.2.6 Amortization after a Value Dated Amendment
10.2.7 Making Changes in Fees
10.2.8 Settlement instructions
10.2.9 Specifying Linkages
10.2.10 Viewing Messages using Message Preview
10.2.11 Deleting Value Dated Amendments
10.2.12 Schedule Changes for VAMI
10.2.13 Reduction of CoC balances for HFI Contracts
10.3 Simulating VAMI
10.4 Tracking Payables and Receivables
10.5 Progressive Disbursement
11. Automatic Processing
11.1 Automatic Events in the Life Cycle of a Loan
11.2 Specifying Branch Parameters
11.2.1 Processing for Holidays
11.2.2 Specifying the Tax Basis
11.2.3 Setting the Accrual Level
11.2.4 Auto Authorization
11.2.5 Reversal Suspense GL
11.2.6 Indicating your Specifications for the different ‘Rates’
11.2.7 Back Value Details
11.3 Initiating the Automatic Contract Update Function
11.3.1 Processing during Beginning of Day
11.3.2 Processing during End of Day
11.3.3 Processing for Holidays
11.4 Processing Auto Capitalization of Interest
11.5 Initiating a Future Value Dated Contract
11.6 Processing an Automatic Repayment
11.6.1 Advices Generated for a Repayment
11.7 Generation of Billing Advices and Delinquency Notices
11.8 Automatic Rollover of a Loan
11.8.1 Advices for Rollover
11.8.2 Automatic Status Changes
11.8.3 Defining Status Codes for a Product
11.8.4 Changing the Status of a Loan
11.8.5 Automatic Status Change
11.9 Advices to be Generated for a Status Change
11.10 Accrual of ICCF Components
11.10.1 The Memo Accrual Function
11.10.2 Contents of the Accrual Control Journal
11.11 Interest Rate Revision on a Loan
11.12 Value Dated Changes
11.12.1 Advices generated for Value Dated Changes
11.13 Viewing Unauthorized Transactions
11.14 End of Day Operations
11.14.1 Maintenance
11.14.2 Transaction Process
12. Processing a Commitment
12.1 Introduction
12.2 Defining a Commitment Product
12.3 Initiating a Commitment
12.3.1 Making Value Dated changes
12.3.2 Capturing Auto Step-up and Auto Step-down of a commitment
12.4 Linking a Loan to a Commitment
12.4.1 Specifying the Details of the Linkage
12.4.2 Specifying the Linked Amount
12.4.3 Specifying the Exchange Rate
12.4.4 The Converted Link Amount
12.4.5 Type and Total Linked Amount for each Type
12.4.6 Uncovered Amount
12.4.7 Accounting Entries for a Linkage
12.4.8 Amending Commitment Linkage Details
12.4.9 Processing Commitment Linkage Changes
12.4.10 Defining Schedules for Reduction of Commitment Amounts
12.5 Viewing Billing Notice History
12.6 Maintaining Slab/ Tier Based Fee for Commitment
12.6.1 Maintaining Fee Rule Definition Structure
12.6.2 Associating Fee at Product Level
12.6.3 Associating Fee at Contract Level
12.7 Viewing Quick Query Details of Loans
12.7.1 Viewing Loan Quick Reference Summary Details
12.8 Viewing Quick Query Details of Commitments
12.8.1 Viewing Commitment Quick Reference Summary Details
12.9 Revaluation of Commitment
13. Annual Rest Loans
13.1 Introduction
13.1.1 Specifying the Unearned Interest Calculation Parameters
13.1.2 Specifying the Accounting Roles for Unearned Interest Component
13.1.3 Capturing the unearned interest details at the contract level
13.1.4 Amending the Details of Annual Rest Loans
13.1.5 Processing Accruals
13.1.6 Specifying the Status of Annual Rest Loans
13.1.7 Processing Prepayments of Installment Loans
15. Jobs and EOD Batches
16. Appendix A - Customer Correspondence
16.1 Introduction
16.1.1 Contract Initiation
16.1.2 Amendments to the Terms of the Loan during its Tenor
16.1.3 Advice generated for Contract Initiation
17. Appendix B - Accounting Entries, Advices and Error Codes
17.1 Accounting Entries for Loans
17.2 Loans Events
17.3 Amount Tags
17.4 Accounting Roles
17.5 Event-wise Accounting Entries and Advices
17.5.1 Term Loan – Bearing
17.5.2 Demand Loan
17.5.3 Commitment
17.5.4 Late Payment Charges
17.5.5 OL Residual Amount Liquidation
17.5.6 Moratorium Interest Accounting Entries
17.5.7 Reporting Components Accounting Entries
17.5.8 Advices in Oracle Lending module
17.6 Accounting Entries for Contract Adjustment
17.7 Payable Receivable Liquidation
17.7.1 Credit Interest Component
17.8 Accounting for Discounted Loans
17.9 Accounting Entries for Non-Performing Loans
17.10 Accounting Entries for Reserved and Non-reserved Loans
17.11 Accounting Entries for Cost of Credit Valuation
17.12 Accounting Entries for LC Sublimit Re-classification
17.13 Accounting Entries for Rollover Contingent
17.14 Error Codes
17.14.1 Amortized Exchange Details
17.14.2 Effective Date of Exchange Rate Amendment
17.14.3 Adjustment Reversal Details
17.14.4 Cost of Credit Valuation
17.14.5 LC Sublimit Balance (HFI) Update
17.14.6 Late Payment Charges
17.14.7 All-In Rate Floor/Ceiling for Loans
17.14.8 Pool Funds
17.14.9 Chinese Characters in Payment
17.14.10 UCC Processing
17.14.11 Marking Contracts as Liquidated
17.14.12 Clearing Line Validation
17.14.13 Participant Margin Maintenance
17.14.14 CUSIP Reclass
17.15 Examples of Calculating TEAC
17.15.1 Example I – Simple Bearing loan
17.15.2 Example II –True Discounted Loan
17.15.3 Example III – Bearing Loan (Irregular Interest periodicity)
17.15.4 Example V – Premature Liquidation
18. Appendix C – Unexpected Recovery
18.1 Introduction
18.1.1 Setting Up Events, Accounting Roles and Amount Tags
19. Function ID Glossary