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.
- The preferences with regard to interest applicable.
- The payment schedules.
- The liquidation schedules for ICCF components.
- 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.
Parent topic: Loan Syndication