1.1.5 Defining Products

In Oracle Banking Corporate Lending, any service or scheme that you want to make available to your customers can be defined as a product. For instance, your bank may be entering into lending agreements with other lending banks, to disburse loan requests as a syndicate. This facility of disbursing syndicated loans can be defined as a product.

Going further, your bank could be offering borrowing customers loans through any tranche of a syndication contract framework. To recall, a tranche is a channel through which a borrowing customer could receive the required loan as a drawdown. This facility that you want to offer to your customers, of availing loans through a ‘tranche’ arm of the syndicate agreement, could also be defined as a tranche product.

Defining products simplifies the task of disbursing syndicated loans. Typically, you would need to specify the following information about a tranche product each time you process a drawdown under the tranche:

• The preferences with regard to interest applicable.
• The payment schedules.
• The liquidation schedules for ICCF components.

You can define a product with all the specifications listed above. Each time you enter a drawdown under the product into Oracle Banking Corporate Lending, they are automatically applied to it, and you need not specify them new.

In Oracle Banking Corporate Lending, you can define two levels of products for syndication contracts:

• The main syndication product. This level establishes a blueprint for capturing details for all syndication contracts.
• The tranche and drawdown level products. This level enables you to capture details for all tranches under a syndication contract, as well as the draw downs under each tranche.