3.1 Introduction

In this topic, focuses on defining the attributes specific to a Loans product. You can create a loans product in the Bilateral Loans Product Definition screen.

Specify the User ID and Password, and login to Homepage.

1. On the homepage, type OLDPRMNT and click next arrow.
   The Bilateral Loans Product Definition screen is displayed.

   Note:

   The fields which are marked in asterisk red are mandatory fields.

   Figure 3-1 Bilateral Loans Product Definition

   
   

   
   Description of "Figure 3-1 Bilateral Loans Product Definition"

   
   
2. In this screen, you can enter basic information relating to a loans product such as the product code, the description, and so on.
   For any product you create in Oracle Lending, you can define generic attributes, such as branch, currency, and customer restrictions, interest details, tax details, and so on, by clicking on the appropriate icon in the horizontal array of icons in this screen. For a loans product, in addition to these generic attributes, you can specifically define other attributes.

   You can define the attributes specific to a loans product in the Bilateral Loans Product Definition main screen and the Loans Product Preferences screen. In these screens, you can specify the product type and set the product preferences respectively.

   For more information on the generic attributes you define for a product, refer to the following Oracle Lending User manuals.

   • Products
   • Interest
   • Charges and Fees
   • Tax
   • User Defined Fields
   • Settlements
3. Specifying Product Type
   The first attribute that you define for a product is its type. In the Bilateral Loans Product Definition screen, you can classify the products you create into the following types:

   • Loans
   • Commitments

   When creating a loans product, you have to select the Loans option in the Product Type field. For instance, you may want to create a loan product for HFS transfer.
4. Creating a Commitment Product
   In the Bilateral Loans Product Definition screen, you can also define various types of commitments as products. A commitment is a formal understanding between a bank and its customer that the bank is willing to advance a loan during a certain period in the future. A fee may be charged at the time of entering into this understanding. When a commitment is initiated, contingent entries are passed for the commitment amount. When a loan is disbursed against this commitment, the contingent entries are reversed and the loan-related entries are passed. However, these entries are passed only if they are defined for the product.

   A commitment may be linked to more than one loan, depending on the availability of funds.