4.12 Settlement

This widget allows you to view the settlement offers created for your account. It also enables you to create and modify the status of these settlement offers according to business procedures. Accounts eligible for settlement offers are selected based on predefined criteria.

The offer, which includes the settlement amount and term, is generated automatically and communicated to the selected customers. Customers receiving these offers are expected to accept them and settle their loans with the bank. Additionally, collectors can engage with account owners to facilitate the settlement process using the offers provided by the bank. Once the agreed-upon settlement amount is paid, it is referred to as loan settlement, and any remaining outstanding loan balance is written off by the bank.

If you are collector, you can enable settlement flag from Enable Specialized Process pop-up. Once the flag is enabled, you can expand settlement widget and create new settlement offer if no other offer exists in active state. There are multiple stages of the settlement offer in the system as explained below.
  1. Initiated - This will be the initial status of the settlement when a settlement offer is created.
  2. Cancelled - The status will change to this if the user selects cancel offer from the screen.
  3. Offer Generated - Once the settlement offer communication is sent to the customer, the status will automatically change to offer generated.
  4. Offer Accepted - The status should change to this, when the user selects offer accepted from the screen.
  5. Offer Declined - The status should change to this, when the user selects 0ffer declined from the screen.
  6. Partially Settled - When the received amount is less than the offer amount, the offer status will automatically move to this status at the end of the offer term.
  7. Fully Settled - When the received amount is equal the offer amount, the offer status will automatically move to this status at the end of the offer term.
  8. Not Settled - When no amount is received, the offer status will automatically move to this status at the end of the offer term.

    Table 4-24 Field Description: Settlement widget

    Field Name Description
    Total Outstanding Displays the total outstanding amount of the account.
    Settlement Amount Displays the settlement amount negotiated with the customer.
    Outstanding Post Settlement Expected remaining outstanding amount after settlement.
    Payment Received Total of all the payments received after the account has moved into settlement.
    Settlement Status Current settlement status on the account.
    Offer Display the count of offer generated, accepted, declined and cancelled.
If you click expand, the Settlement Details section is displayed.

Table 4-25 Field Description: Settlement Details

Field Name Description
Case ID, <Customer Name> Displays the case ID and name of the customer.
Settlement Details This section displays the details of the settlement created on the account.
<Product Sub Type - Account Displays the product sub type and account number.
Settlement Amount Displays the settlement amount negotiated with the customer.
Received Amount Displays the total amount received from the customer after the offer is created.
Settlement Status Current settlement status on the account.
Basic Details This section displays all the information about the settlement offer and allows user to create new offer or take action of the existing offers running on the account.
Settlement (as on Initiation Date) This sub-section will display all the outstanding information as of the date the accounts were marked for settlement or when the settlement status was enabled on the account.
Total Outstanding Displays the total outstanding amount of the account.
Principal Outstanding Displays the principal bucket amount of the total outstanding amount.
Interest Outstanding Displays the interest bucket amount of the total outstanding amount.
Other Charges Displays the fees and other charges bucket amount of the total outstanding amount.
Settlement Initiation Date Displays the date on which settlement was initiated.
Settlement Offer This sub-section displays a table through which collector can create or update a settlement offer in the system. The user should be able to add a new row and create a settlement offer.
Offer ID Displays the settlement offer Id.
Offer Date Displays the date on which settlement offer is generated.
Expiry Date Displays the date on which offer will expire. In the create mode, collector is allowed to enter the date.
Settlement Type Displays all settlement types in the drop down and collector can select appropriate settlement type.
Settlement Amount Displays the settlement amount negotiated with the customer. In the create mode, collector is allowed to enter the amount.
Term(days) Displays the time period (in days) within which the settlement amount needs to be paid. In the create mode, collector is allowed to enter the number of days.
Status Displays the current settlement status.
Action Displays the actions to be taken by collector based on the current settlement status.

This topic contains the following sub-topics:

Parent topic: Case Summary