1.1 Loan Origination

This topic describes about the loan origination process to create corporate loans, that is, starting from loan account creation to disbursement.

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 through 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 are 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.

Figure 1-1 Loan Origination

Description of Figure 1-1 follows
Description of "Figure 1-1 Loan Origination"
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 drives 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

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.

  1. From Homepage, click Corporate Lending, and then Operations. From Operations, click Bi-Lateral.
  2. From Bi-Lateral, click Loan Origination.
    The Loan Origination screen displays.

    Figure 1-2 Loan Origination

    Description of Figure 1-2 follows
    Description of "Figure 1-2 Loan Origination"
  3. Specify the fields on Loan Origination screen.
    For more information on fields, refer to the field description table

    Table 1-1 Loan Origination

    Field Description
    Customer Type Select the customer type.

    The available options are:

    • 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.

    In case of existing customer, you can view and link one customer to multiple liabilities.
    Lead/Prospect Number Select the required lead/prospect number.

    This helps to determine if the loans are given under any back scheme.
    Proposal Number Select the required proposal number.

    These provide the list of proposal given to a customer through Draft Proposal Process. Once selected the completed application of draft proposal is displayed to choose one application. Once selected all the data segment applicable to the current application defaults the value from Draft proposal.
    Business Product 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 Select the required customer identification number or user can also type the customer number.

    This field is applicable only when the customer type is selected a Existing.
    Customer Name Based on the customer number selected, the information is auto populated.
    Loan Purpose/Intent Select the required loan purpose/intent.
    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 Amount Enter the amount of the loan required by customer.
    Priority Select a priority.
    The available options are:
    • High
    • Medium
    • Low
    Facility Details Displays the list of all facilities that are created for the customer number. User can select the appropriate facility ID which requires to be linked for the loan.
    Commitment linkages Displays the list of all commitment linkages that are created to the loan amount.

    In case of existing customer, user can select the already added commitment (available in OBCL). User cannot delete the commitment linkage once added.
    Application Channel Select the required application channel.
    Application Submitted By Select the details of the Agent/Customer who has submitted the application.
    The available options are:
    • Agent
    • Customer
    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.
  4. Click Initiate to begin the process.
    On submit of the screen, a unique Application Registration number is auto generated by the system, which are used throughout the process and for further tracking. For an application, based on application category namely, Term Loan, Pre-shipment Finance, Post-shipment Finance, Project Financing, Working Capital and so on. The system derives the process flow for Loan Origination and the process gets instantiated. Based on the user rights the system navigates the first manual stage of the process flow.
This topic contains the following sub-topics:

Parent topic: Bilateral Loans