1. Bilateral Loans User Manual
  2. Bilateral Loans
  3. Loan Drawdown

1.3 Loan Drawdown

Use loan drawdown feature to drawdown the required loan amount for an existing customer.

Loan Drawdown provides function to drawdown the required loan amount for an existing customer. Once the facility is set for corporate customer, the customer can avail the loan from the bank's existing facility. The application passes 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 drawdown 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 drawdown 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.

The process flow pre-defined for Loan Drawdown 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 Drawdown life cycle:
  • KYC Required
  • CAMS Initiation Required
  • Credit Appraisal Required
  • Legal Approval Required
  • Customer Acceptance Required
  • Loan Amount
  • Loan Currency

The basic registration details to create a loan drawdown for a prospective borrower can be initiated using this Initiation Screen, provided the user has the required access rights.

To initiate Loan Drawdown

  1. On the Homepage, from Corporate Lending, under Operations, click Bi-lateral.
  2. On Bi-lateral menu, click Drawdown.
    The Drawdown screen is displayed.

    Figure 1-27 Loan Drawdown

    Description of Figure 1-27 follows
    Description of "Figure 1-27 Loan Drawdown"
  3. On Drawdown screen, specify the fields. For more information on fields, refer to the field description table

    Table 1-19 Drawdown

    Field Description
    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.

    In case of existing customer, you can view and link one customer to multiple liabilities.
    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 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.
    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.
    Commitment Linkage Displays the list of all commitment linkages that are created to the loan amount. In case of existing customer, you can select the already added commitment (available in OBCL). You cannot delete the commitment linkage once added.
    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 drop-down 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.
  4. Click Initiate to begin the process.

    Click Submit, 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.

Related Topics

Parent topic: Bilateral Loans