4.3 Products for Loan Syndication Contracts

A product is a specific service, scheme or facility that you make available to customers.

For instance, the facility of a syndication agreement between your bank and other banks or financial institutions, for the purpose of pooling funds to disburse loans is a specific service you could offer. This service can be thought of as a product.

Similarly, the facility of availing loans through a drawdown, from any of the tranches under the borrower facility contract, is another specific service that you offer to customers. This could also be thought of as a product.

In Oracle Banking Corporate Lending, a contract is entered into the system against a product, and is specific to a customer. For instance, a drawdown loan for a borrowing customer under a tranche of a borrower facility contract is entered into the system against a borrower leg drawdown loan product.

Defining a product simplifies the process of entering a contract, since you can define certain attributes for a product that are applied to all contracts entered against the product automatically, saving your effort to specify them afresh each time you input a contract. When Oracle Banking Corporate Lending processes the contract, it applies all the attributes and specifications made for the product against which the contract was entered.

You can enter more than one contract against a product.

Before you enter any contracts for a facility contract, whether the main contracts or the commitments or loan contracts, you should have already defined the following products:

1. A borrower facility product for borrower facility contracts. In addition, participant facility products for the resultant participant facility contracts.
2. Tranche-level commitment type of products for borrowing customers, and participants.
3. Loan products for the borrowing customers for drawdowns under a tranche, as well as deposit products for the participants.

The definition of these products is explained in the chapter Defining Products for Loan Syndication in this user manual.