1.5 Loan Servicing

This topic describes about the Loan Servicing stage. The loan servicing process is used to manage various life cycle events of a corporate loan account after drawdown process is complete.

The 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

The 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

The 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

The basic details to request for servicing of a corporate loan for a borrower can be initiated using this Initiation screen, provided you have the required access rights.

To initiate Loan Servicing

1. From Homepage, clcik Corporate Lending, and then click Operations. From V, click Bi-lateral.
2. From Bi-lateral, click Financial Amendment.
   The Financial Amendment screen displays.

   Figure 1-49 Financial Amendment

   
   Description of "Figure 1-49 Financial Amendment"

   Note: Click Advanced Search to provide further details to search for a loan contract as illustrated.

   Figure 1-50 Advanced Search

   
   Description of "Figure 1-50 Advanced Search"
3. Select an appropriate servicing operation - Financial Amendment, Non-financial Amendment, Rollover, or Payment.
4. 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 is the list the customer available
   • Facility Code - The LOV attached to this field is the list the facility codes in the system.
5. Click Search to list the contracts that meets the search criteria for user to choose a contract number. Advanced search option can be activated using the toggle in the search bar where 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. User can choose a business product and the value date for the changes to be effective. On click of initiate, a unique Application Registration number is auto generated by the system, which are used throughout the process and for further tracking. Based on servicing type selected, the system derives the process flow for Loan servicing with the configured list of data segments and the process gets instantiated.

   Based on the user rights, the system navigates the user to the first manual stage of the manual stage of the process flow.

   This topic contains the following sub-topics:

• Process of Rollover
  This topic describes the systematic instructions to Rollover stage. The Rollover denotes the renewal of a loan.
• Financial Amendment
  This topic describes the systematic instructions to Financial Amendement stage.
• Non Financial Amendment
  This topic describes the systematic instructions to Non Financial Amendement stage.
• Payment
  This topic describes the systematic instructions to Payment stage.