6.1 Repayments

When you disburse loans to a borrowing customer through a drawdown against a tranche under a borrower facility, you also define the terms according to which the loan components should be repaid. You can define your own repayment schedules. For instance, you could choose to have the principal repaid at maturity, with the interest component being repaid monthly. You could also define the repayment terms to suit your customer’s requirements.

In Oracle Banking Corporate Lending, you can define the repayment schedules when you define a product. These default to all contracts processed under the product. However, Oracle Banking Corporate Lending gives you the flexibility to change the schedules for a specific contract, if required.

Repayments, in the context of a syndication contract, involve liquidation of the following components:

• For tranche contracts
  • Charges
  • Ad-hoc fees
• For drawdown contracts
  • Loan Principal
  • Interest /Charges
  • Ad-hoc fees

This topic contains the following sub-topics:

• Reversing a Payments