4.4 Link a Loan to Commitments

loan can be linked to a commitment. A linkage of this nature means:

Table 4-21 Linking a Loan to Commitments

Type of linkage	What it indicates
Linked to a commitment	You can utilize the entire amount of a commitment, or a portion of it for a loan. The available balance in the commitment is reduced. You can also link a portion of the loan to a commitment. If contingent entries were passed when the commitment was initialized, they should ideally be reversed, when a loan is linked to it. This accounting entry should be defined for the INIT (initiation) event of the loan, for the loan product. A commitment can be linked to more than one loan, provided the amount is available for utilization.
Linked to a commitment in another branch	You can link a loan in one branch to a commitment in another branch by selecting the commitment reference number across branches.
Linked to multiple collateral or pool	You can link OL contract to multiple collateral or collateral pool.

A loan, or a portion of it, can be linked to any number of commitments.

This topic contains following sub-topics:

• Specifying the Type of Linkage
  
• Specifying the Details of the Linkage
  
• Projected Available Amount
  
• Exchange Rate
  
• Specifying the Linked Amount
  
• Linking a Loan in One Branch to a Commitment in another Branch
  
• Link Commitments to a Loan
  
• Link OL contract to a facility or multiple collateral/pool
  
• Modifying a Loan Disbursement
  
• Financial Details that can be Changed
  
• Viewing the Other Details of a Loan
  
• Advices for Loan Disbursement