1.1.7 Processing Repayments

Repayments as well as interest payments on a borrower drawdown loan are distributed to the participants.

A common loan syndication pool is maintained to which contributions towards the borrower loan principal would be credited, and from which the borrower avails drawdown loans. Repayments of principal are also credited into this common syndication pool, from where they are distributed to the participant nostro accounts.

A common loan syndication interest pool is maintained to which repayments of interest due on the loans are credited. From this pool, the interest due to each participant is distributed to the participant nostro accounts.

You can maintain a GL in Oracle Banking Corporate Lending that would serve the purpose of a common syndication pool, as well as another to serve the purpose of a loan syndication interest pool. These GL’s are known as Bridge GL’s.