4.9.9.10 Viewing Reduction Schedule Details

Similarly, based on the reduction schedule parameters captured, Oracle Banking Corporate Lending computes the reduction schedules. You can view the schedules in the Tranche Reduction Schedules screen. Click Commitment Reduction Schedules button from Schedules tab to view the details.

The following example explains a reduction schedule.

Example

Consider a tranche of USD 100,000.00 valid from 01-Jan-2004 to 31-Dec-2004. The schedule details for the same are given below:

Start Date	End Date	Number	Frequency	Unit	Percentage
31-Jan-04	31-Dec-04	11	Monthly	1	8.5%
31-Dec-04	31-Dec-04	1	Bullet	1	6.5%

Based on the above information, Oracle Banking Corporate Lending shows the below reduction schedule.

Start Date	Tranche Available Amount (USD)	Percentage	Reduction Amount
31-Jan-04	100,000.00	8.5%	8,500.00
29-Feb-04	91,500.00	8.5%	8,500.00
31-Mar-04	83,000.00	8.5%	8,500.00
30-Apr-04	74,500.00	8.5%	8,500.00
31-May-04	66,000.00	8.5%	8,500.00
30-Jun-04	57,500.00	8.5%	8,500.00
31-Jul-04	49,000.00	8.5%	8,500.00
31-Aug-04	40,500.00	8.5%	8,500.00
30-Sep-04	32,000.00	8.5%	8,500.00
31-Oct-04	23,500.00	8.5%	8,500.00
30-Nov-04	15,000.00	8.5%	8,500.00
31-Dec-04	6,500.00	6.5%	6,500.00

Note:

• At the time of drawdown, system should validate that the total outstanding under the tranche after including the current drawdown amount is within the tranche available amount as per the schedule defined.
• System should validate that for all future dates, the sum of outstanding principal (computed based on drawdown repayment schedule) for all draw-downs under the tranche (including the current drawdown and its repayment schedule) is within the tranche available amount.
• Oracle Banking Corporate Lending validates to ensure that for all future dates, the sum of the outstanding principal for the various drawdowns (based on the repayment schedule) under a tranche is within the tranche available amount.

This validation is done under the following conditions:

• At the time of Prepayment
• Initiation of a fresh drawdown
• Redefinition of reduction schedules
• Drawdown availability Expiry
• Cancellation (Partial/Full) of a tranche
• Revaluation
• Pre-ponement and postponement of drawdown availability expiry date

At any given time only one person (user) can perform amendment operations in a tranche or drawdowns under the tranche, which result either in amendment to the reduction schedule or change to the current limit amount in the tranche (on account of initiation of a fresh drawdown).

Oracle Banking Corporate Lending uses the exchange rate that has been fixed for the drawdown, to check the individual drawdown repayment schedule against the tranche reduction schedule if the currency of the drawdown is different from the currency of the tranche.