3.3 Funding Requirement

This topic provides systematic instructions about the procedure to extend the expiry date of a single facility in Credit Extension Initiation stage.

The Funding Requirement data segment displays all the facilities availed by the party. You can extend the expiry date of individual facility from this data segment, if required. Facilities for which extended expiry date is not provided in this data segment will have the common expiry date provided in the Initiation - Liability Details window as extended expiry date.

Note:

In the below screen, all the facilities available under both the parent and child parties are listed. To view only the facilities under particular party, click the down arrow next to party name at the top left corner and select the required party.

  1. Click Next in the previous data segment to proceed with the next data segment, after successfully capturing the data.
    The Funding Requirement screen displays.

    Figure 3-8 Initiation - Funding Requirement


    Facilities list

  2. Click the action icon in the required facility record and select Edit.
    The Funding Requirement - Facility Details window is displayed.

    Figure 3-9 Funding requirement - Facility Details


    Option to specify extended expiry date

    Table 3-2 Basic Info

    Fields Description
    Branch Search and Select Branch from list of Branch Code.
    Line Code Enter Line Code for the facility.
    Line Serial Number Line Serial Number will be defaulted to 1 and you cannot modify line serial number.
    Parent Facility ID Search and Select Parent Facility ID and enter the following fields:
    • Facility ID
    • Facility Description
    • Line Code
    • Line Serial
    Facility Type Select Facility Type from the below checklist. The options are:
    • Funded
    • Non Funded
    Facility Category Search and Select Facility Category from list of Category Code.
    Facility Description Enter Facility Description for the facility.
    Project Id Search and Select Project Id from list of Category Code.
    Class Code Search and Select Class Code from list of Category Code.
    Commitment Status Select Commitment Status from the below checklist. The options are:
    • Committed
    • Uncommitted
    Secured Click Secured option and select Cascade check box, if required.
    Revaluation Required Select Revaluation Required option, if required.
    Rate Agreement Required Select Rate Agreement Required option, if required.
    Drop Line Limits Switch to indicate, if the facility limit drops over time based on a schedule.

    Table 3-3 Sanction

    Fields Description
    Currency Search and select Currency in which the facility has to be offered.
    Requested Amount Specify the amount requested by the party in Requested Amount field.
    Probability of Default Enter Probability of Default. Select Decrement and Increment drop-down list option on right to increase or decrease the probability.
    Loss Given Default Enter Loss Given Default. Select Decrement and Increment drop-down list option on right to increase or decrease the loss given.
    Facility Risk Rating Enter Facility Risk Rating. Select Decrement and Increment drop-down list option on right to increase or decrease the facility risk rating.
    RAROC Enter RAROC. Select Decrement and Increment drop-down list option on right to increase or decrease the RAROC.
    Day Light Limit Enter Day Light Limit for the facility.
    Shadow Limit Click Shadow Limit check box to select Shadow Limit.
    Limit Amount Basis Select Limit Amount Basis from the below drop-down list. The options are:
    • Limit Amount
    • Limit Amount + Collateral Contribution
    • Minimum of Limit Amount or Collateral
    Bulk Payment Click Bulk Payment check box to select Bulk Payment.
    Internal Remarks Enter Internal Remarks, if required.

    Table 3-4 Availability

    Fields Description
    Line Start Date Select Date for Line Start Date.
    Line Expiry Date Click Select Date and select date for Line Expiry Date.
    Renewal Date Click Renewal Date and select date for Renewal Date.
    Maintenance Value Date Click Maintenance Value Date and select date for Maintenance Value Date.
    Drawing Power Backed Enable Drawing Power Backed, if required.
    Revolving Line Enable Revolving Line, if required.
    Is Non Revolving Special Line Enable Is Non Revolving Special Line, if required.
    Unadvised Enable Unadvised, if required.
    Available Displays the current Available status of the line.
    Availability Period Specify the Availability Period for the facility.

    Table 3-5 Limit Review

    Fields Description
    Limit Status Select Limit Status from the drop-down list. The options are:
    • Active
    • Closed
    • Frozen
    Next Review Date Select Date for Next Review Date.
    Review Frequency Select Review Frequency from the drop-down list. The options are:
    • Half yearly
    • Monthly
    • Quarterly
    • Yearly

    Table 3-6 Utilization

    Fields Description
    Utilization Tracking Select Utilization Tracking from the drop-down list. The options are:
    • Local
    • Global

    Table 3-7 Exception

    Fields Description
    Exception Transaction Amount Enter Exception Transaction Amount for the facility.
    Netting Required Select Netting Required, if required.
    Exception Breach Percentage Enter Exception Breach Percentage. Select Decrement and Increment drop-down list option on right to increase or decrease the exception breach percentage.

In the Funding Requirement - Facility Details window, you can modify only the Extended Expiry Date.

  1. Specify the Extended Expiry Date for the facility.

Note:

Extended expiry date of the facility must not exceed the liability’s expiry date.

  1. Click Save.
  2. To change the layout of the Initiation - Funding Requirement screen to Table View or Tree View, click the corresponding icon.
  3. To go to the next screen, click Next.
    The Initiation - Comments screen is displayed.

Parent topic: Credit Extension Initiation