Creating a Borrower Tranche/Drawdown Product

3.3 Creating a Borrower Tranche/Drawdown Product

When you define a borrower facility product, you must specify the corresponding borrower tranche and drawdown products to be used for borrower tranche or drawdown contracts that will be processed under the parent borrower facility contract that uses the borrower facility product.

You must also specify the participant product that is used to process participant contracts that are created from borrower facility contracts that use the borrower facility product.

Therefore, it becomes necessary for you to create participant products and borrower tranche and drawdown products before creating borrower facility products.

To create a borrower tranche or drawdown loan you can specify the basic details such as the Product Code, Group, Description, and so on in the Loans Syndication – Borrower Product Definition screen.

Specify the User ID and Password, and login to Homepage.

On the homepage, type LBDPRMNT and click next arrow.
The Loan Syndication - Borrower Product Definition screen is displayed.

Note:
The fields which are marked in asterisk red are mandatory fields.

Figure 3-1 Loan Syndication - Borrower Product Definition

For any product you create in Oracle Banking Corporate Lending, you can define generic attributes, such as fees, charges, interest details, and so on, by clicking on the appropriate icon in the horizontal array of icons in this screen.

The tabs provided in the screen are used for the following purposes:

Tabs	Description
Accounting Roles	Defining Accounting Roles and Heads for a product
Events	Defining Events and for maintaining Accounting Entries and Advices for each event
Preferences	Maintaining attributes specific to a product
MIS	Maintaining MIS details
Interest	Maintaining Interest details for a product
Charges	Maintaining Charge details for a product
Fee	Specifying fee details for a product
Discount accrual	Specifying discount accrual preferences
Fields	Making User Defined Fields (UDFs) applicable to a product
Diary Events	Associating diary events with the product
Party Type	Associating party types with the product
Change Log	Maintains list of modification details made for a product
Accrual Fee Details	Maintains accrual fee details for a product

Note:

Only the specifications exclusive to the Tranche/Drawdown product is explained in this chapter.

For information on the generic attributes of a product, refer the following Oracle Banking Corporate Lending User Manuals:

Products
MIS
Interest
Charges and Fees
Tax
User Defined Fields and
Settlements

For a borrower tranche/drawdown product, in addition to these generic attributes, you can specifically define other attributes.

Defining the Borrower Product Type
You can define the generic attributes specific to a borrower tranche/drawdown product in the Loans Syndication – Borrower Product Definition screen.
- Type
  The product type is the first attribute that you specify for a borrower tranche or drawdown product. It indicates the category under which the product can be placed, and the type of contract that will be processed against the product.
  Each borrower product that you define could be placed under any of the following categories:
  - Drawdown: To process the actual borrower drawdowns under a borrower tranche, you need to select the drawdown type of product.
  - Tranche: For processing a tranche under a facility contract, you need to define a tranche type of product
This topic contains following sub-topics:

Parent topic: Defining Products for Loan Syndication