3.2.7 Specifying Tenor Related Details

You can set the minimum and maximum tenor limits for a loan product that you are creating. You can also specify a standard tenor or a default tenor.

Example

You have a product Short-term Loans for the Manufacturing industry - ML10. This product is for short-term loans for manufacturers of iron and steel, chemicals, textiles, and so on. The loans involving this product have a tenor of three months, six months, and so on. For such a product you can set a minimum tenor of one month and a maximum tenor of one year.

The Default Tenor is the tenor that is associated with a loan involving this product. However, the default tenor applied on a loan can be changed during loan processing.

Example

You can define a default tenor for the product we just discussed, say, six months. This tenor is applicable to all contracts involving the product. However, you are allowed to specify a different tenor at the contract level.

Note:

In case of rollover, if contract tenor is more than maximum aggregate tenor of the loan then appropriate override message appears.