1.1.8 Automatic Processing of Different ‘Events’

A loan contract goes through different stages in its lifecycle. These stages are referred to as events in Oracle Lending. Events can be defined as Booking, Amendment, Rollover, Liquidation, and so on.

Once a loan contract is initiated, Oracle Lending automatically processes all the events defined for it. Starting from initiation upto liquidation, or rollover, it processes the following automatically:

• Passes the appropriate accounting entries
• Generates the advices and messages specified for the event (including billing notices and delinquency notices to defaulters)
• Liquidates due schedules
• Accrues interest
• Rolls over a loan into a new one
• Applies penalty interest on default

In addition, you can automatically track overdue loans and classify them into various statuses. For each status, you can specify preferences like whether accruals should be stopped, reversed, or, if the loan should be transferred to a different asset account.