10.1 Automatic Events in the Life Cycle of a Loan

The following are the various events in the life cycle of a loan that could be carried out automatically:

• The initiation of a loan with a Value Date in the future.
• The application of appropriate interest rates for loans with Floating Interest.
• The generation of a Billing Notice as a reminder of a payment.
• The liquidation of a scheduled repayment.
• The rollover of a loan.
• The generation of Delinquency Notice(s) when there is a default in payment.
• The change of contract status, as part of the aging analysis process.
• The periodic accrual of ICCF components.
• The application of rate changes and additional disbursements captured with a Value Date in the future.
• You would have noticed that some activities that can be carried out automatically are done so only on a specific instruction from you. The following are such activities:
  • The liquidation of a scheduled repayment
  • The rollover of a loan

The Automatic Contract Update function should be executed at least twice during the day:

• Once before you begin transaction related activities for the day (that is, as a part of the beginning of day activities).
• Once after you have finished all the transaction related activities for the day. If any transaction related activity is carried out after the function has been run, as part of end of day (EOD) activities, you have to execute it again so that the processing that may be necessitated by the transaction related activity is carried out.

As part of pre-EOTI programs executed during TI (Transaction Input), before marking EOTI (End of Transaction Input) for the day, the following processing is done during Pre-EOTI:

• Interest Accrual
• Floating Rate Revision
• Holiday Upload