7 Proposal Structuring

In this stage, the Credit manager structures the proposal in terms of quantum of funding, type of products/funding to be extended, pricing, T&C, covenants, collateral/margin etc. to be applied based on the scoring generated in the risk, legal and credit evaluation stages, collateral value and information captured in the previous stages. In addition, the user can also structure the availability of funds between the parent and the child party's.

The following table provides high level overview about the Proposal Structuring stage.

Table 7-1 Proposal Structuring

Information available for user Activities that can be performed by user
  • View party summary
    • Liabilities requested
    • Facilities requested
    • Collateral Offered
    • Covenants stipulated
    • Conditions stipulated
    • Financials
    • Rating
    • Demographic details
  • View the credit evaluation scores and details
  • View the legal evaluation score and details
  • View the risk evaluation score and details
  • View Write up added in previous stages
  • View comments added in previous stages
  • View Collateral valuation details
  • Edit the liability details if needed
  • Liability
    • Capture proposed Liability amount
    • Capture proposed expiry dates
  • Facility
    • Capture proposed facility amount
    • Capture proposed expiry dates
    • Add/Modify/Delete facilities
    • Add details like Schedule, Exposure, Fee, Collateral Pool
    • Linkage, Pricing, Covenants, Conditions
  • Collateral
    • Remove any collateral added in previous stages
    • Add new collateral
  • Add write up about the party
  • Add comments for the stage
  • Send back the application if additional info required
  • Submit application for review

Steps to structure credit proposal

To structure the credit proposal, perform the following steps:

  1. In OBCFPM, navigate to Tasks > Free Tasks.
    The Free Tasks page is displayed.

    Figure 7-1 Free Tasks


    Description of Figure 7-1 follows
    Description of "Figure 7-1 Free Tasks"

  2. Acquire & Edit the required Proposal Structuring task. The Credit Origination - Proposal Structuring page summarizing the proposal appears.
  3. To view the sector and industry information, click Industry icon in Party Informationsection.
    The Industry Details window is displayed.

    Figure 7-6 Industry Details


    Description of Figure 7-6 follows
    Description of "Figure 7-6 Industry Details"

  4. Click Close to exit the Industry Details window.
  5. To view the overview of the party, click Entity Overview icon in Party Information section.
    The Entity Overview window appears.

    Figure 7-7 Entity Overview


    Description of Figure 7-7 follows
    Description of "Figure 7-7 Entity Overview"

  6. Click Allowed Customers For This Liability icon in the Party Information section, to view party's linked to the liability information.
    The Allowed Customers For This Liability window appears.

    Figure 7-8 Allowed Customers For This Liability


    Description of Figure 7-8 follows
    Description of "Figure 7-8 Allowed Customers For This Liability"

    Figure 7-9 Allowed Customers For This Liability


    Description of Figure 7-9 follows
    Description of "Figure 7-9 Allowed Customers For This Liability"

  7. Click Close, if you want to exit the Allowed Customers for this liability window.
  8. Click Linked to other liabilities icon in the Party Information section, to view other liabilities linked to the party information.
    The Linked to other liabilities window is displayed. If other liabilities are linked, the list of other liabilities details linked to the party window is displayed.

    Figure 7-10 Linked to other liabilities


    Description of Figure 7-10 follows
    Description of "Figure 7-10 Linked to other liabilities"

    Figure 7-11 Linked to other liabilities


    Description of Figure 7-11 follows
    Description of "Figure 7-11 Linked to other liabilities"

  9. Click Close, if you want to exit the Linked to other liabilities window.
  10. Click Layout icon at the top right corner, to change the layout of the Entity Overview.
    The Layout window is displayed.

    Figure 7-12 Layout


    Description of Figure 7-12 follows
    Description of "Figure 7-12 Layout"

  11. Select the required layout. Entity Overview is changed to the selected layout as shown below.

    Figure 7-13 Entity Overview


    Description of Figure 7-13 follows
    Description of "Figure 7-13 Entity Overview"

    Table 7-2 Entity Overview

    Fields/ Icons Description
    Close To exit Entity Overview window, click Close.

    In Party Information section, the count of Share Holders, Contractors, Guarantors, and Bankers is displayed.

    Count Numbers To view the detailed information about the Share Holders, Contractors, Guarantors, and Bankers, click the respective count numbers.
    Layout Icon To change the layout of Facility Summary, Collateral Summary, Existing Facilities held with Other Bank, Pricing, Covenants, and Conditions widgets in Summary page, click Layout icon and select the required layout.
    View all To view detailed information about Financial Profile and Projection, click View all in the respective sections.

    By default, Financial Profile of the party and financial Projections for the party are listed for 3 years.

  12. To view the Financial Profile and Projections for five years, select Previous 5 years option from the Show results for drop-down list.
  13. After reviewing the Summary, click Next. The Proposal Structuring page is displayed.