1.10 Collateral

This topic describes the section of the application form related to collateral and its details.

Since business loans are secured loans, the loan application forms will contain a section in which the applicant can specify information pertaining the collateral that can be used against the loan. You can add multiple collateral records, as required. The value displayed below Total Collateral Value will keep getting updated as and when a new collateral record is added or deleted. It will be mandatory to tag one collateral as that which is to be considered as the primary collateral.

Figure 1-19 Collateral

Description of "Figure 1-19 Collateral"

Note:

The fields which are marked as Required are mandatory.

For more information on fields, refer to the field description table.

Table 1-20 Collateral - Field Description

Field Name	Description
Collateral Type	The type of collateral being defined. The options are: Property Vehicle Precious Metal Deposits Bonds Stocks Life Insurance Accounts Receivable Inventory (Stock of Material) Note: Deposits will only appear in the list, for existing business applications.
The following fields are applicable if the Property option is selected in the Collateral Type drop-down list.
Property Type	The type of property being added as collateral. The options are: Residential Property Vacant Land Under Construction
Property being purchased?	Identify whether the property being added as collateral is being purchased i.e. the loan is being applied to purchase the property. The options are: Yes No
Property Value	The current market value of the property.
Property Address	The address of the property.
Property Address Overlay	This overlay is displayed when you click on the Click Here link available under the Property Address field. On this overlay, you can enter your address line by line.
House/Unit Number	The house or unit number of the property being added as collateral.
Building Name	Enter the building name of the property being added as collateral.
Street	Specify the street address of the property being added as collateral.
Locality	Specify the locality in which the property being added as collateral, is located.
Zip Code	Enter the zip code of the property being added as collateral.
City	The city in which the property being added as collateral, is located.
State	The state in which the property being added as collateral, is located.
Country	The country in which the property being added as collateral, is located.
The following fields are applicable if the Vehicle option is selected in the Collateral Type drop-down list.
Type of Vehicle	The type of vehicle being added as collateral. The options are: Passenger Vehicle Commercial Vehicle
Vehicle Value	The estimated value of the vehicle.
Vehicle Identification Number (VIN)	A unique code assigned to the vehicle by the manufacturer for identification and tracking purposes.
Vehicle Condition	Indicates the current condition of the vehicle.
Make	The brand or manufacturer of the vehicle (e.g., Toyota, Honda, Tata).
Model	The specific model name or number of the vehicle as designated by the manufacturer.
Vehicle Type	Specify the category of the vehicle (e.g., Sedan, SUV, Truck, Motorcycle, Bus).
Vehicle Purpose	The purpose of the vehicle i.e. what it is used for.
Vehicle Capacity - Unit	Select the unit in which you wish to define the vehicle capacity. This field is applicable only if the vehicle is a commercial vehicle.
Vehicle Capacity	The seating or load-carrying capacity of the vehicle (e.g., number of passengers or maximum weight capacity).
Vehicle Classification	The classification of the vehicle. This field is applicable only if the vehicle is a commercial vehicle.
Engine Power	The power output of the vehicle’s engine, typically measured in horsepower (HP) or kilowatts (kW).
Body Type	Describes the physical structure or design of the vehicle (e.g., Hatchback, Coupe, Convertible, Pickup).
Number of Wheels	The number of wheels that the vehicle has. This field is applicable only if the vehicle is a commercial vehicle.
Year of Manufacture	The year in which the vehicle was manufactured.
Distance Travelled – Unit	Select the unit in which you wish to specify the distance that the vehicle has covered in it’s lifetime. This field is applicable only if the vehicle condition is used.
Distance Travelled – Distance	Specify the distance covered by the vehicle in it’s lifetime. This field is applicable only if the vehicle condition is used.
Engine Type	Specifies the type of engine used (e.g., Petrol, Diesel, Electric, Hybrid, CNG).
Engine Number	A unique identification number assigned to the vehicle’s engine by the manufacturer.
Date of Registration	The official date on which the vehicle was registered with the relevant transport authority.
Registration Number	The unique number assigned to the vehicle by the registering authority (license plate number).
Registration Authority	The government authority or Regional Transport Office (RTO) where the vehicle is registered.
The following fields are applicable if the Precious Metal option is selected in the Collateral Type drop-down list.
Value of Precious Metal	The estimated value of the precious metal.
The following fields are applicable if the Deposits' option is selected in the Collateral Type drop-down list. Note: This option will only be provided if the applicant is an existing business customer
Select Term Deposit	Select any of the term deposits mapped to the business' customer ID. All the active term deposits as mapped to the business' customer ID as maintained in the host system will be displayed and available for selection.
Maturity Date	The maturity date of the term deposit.
Available Term Deposit Amount	The amount of term deposit that is available for linkage.
Amount to be Linked	The amount to be linked as collateral.
The following fields are applicable if the Bonds option is selected in the Collateral Type drop-down list.
Type of Bond	The type of bond being added as collateral. The options are: Investment Bonds Secured Bonds Unsecured Bonds
Bond Value	The estimated value of the bond.
The following fields are applicable if the Stocks option is selected in the Collateral Type drop-down list.
Value of Stocks	The estimated value of the stocks.
The following fields are applicable if the Life Insurance option is selected in the Collateral Type drop-down list.
Insurance Value	The estimated value of the insurance.
The following fields are applicable if the Accounts Receivable option is selected in the Collateral Type drop-down list.
Type of Accounts Receivable	The type of accounts receivable being added as collateral. The options are: Bills Receivable Trade Receivable
Account Receivable Value	The estimated value of the accounts receivable.
The following fields are applicable if the Inventory option is selected in the Collateral Type drop-down list.
Type of Inventory	The type of inventory being added as collateral. The options are: Stock of Raw Materials Finished Goods Packaging Materials
Inventory Value	The estimated value of the inventory.
Add another Collateral	Click on this link if you wish to capture details of another collateral.
Total Collateral Value	Displays the total value of collateral i.e. the sum value of all collaterals mentioned. Note: Total Collateral Value must be greater than or equal to the Loan Amount being requested.

1. From the Collateral Type list, select the type of collateral being defined.
   Perform one of the following actions:
   1. If you have selected the Property option;
      1. From the Property Type list, select the type of property being added as collateral.
      2. In the Property being purchased? field, specify whether the property being added as collateral is being purchased or not.
      3. In the Property Value field, enter the current market value of the property.
      4. In the Property Address field, enter the address of the property being added as collateral.
   2. Click the Click Here link provided under the Property Address field to invoke the overlay on which you can enter the property address line by line as follows:
      1. In the House/Unit Number field, enter the house or unit number of the property being added as collateral.
      2. In the Building Name field, enter the building/house name of the property being added as collateral.
      3. In the Street field, enter the name of the street on which the property being added as collateral, is located.
      4. In the Locality field, enter the locality in which the property being added as collateral, is located.
      5. In the Zip Code field, enter the zip code of the property being added as collateral.
      6. In the City field, enter the name of the city in which the property being added as collateral, is located.
      7. In the State field, enter the name of the state in which the property being added as collateral, is located.
      8. Click Update to add the address details. The page displays the newly added address.
   3. If you have selected the Vehicle option;
      1. From the Type of Vehicle list, select the type of vehicle being added as collateral.
      2. In the Vehicle Value field, enter the estimated value of the vehicle.
      3. In the Vehicle Identification Number (VIN) field, enter the unique identification number assigned to the vehicle.
      4. In the Vehicle Condition field, select or enter the current condition of the vehicle.
      5. In the Make field, enter the manufacturer or brand of the vehicle.
      6. In the Model field, enter the specific model name of the vehicle.
      7. In the Vehicle Type field, select or enter the category of the vehicle (for example, car, truck, or bike).
      8. In the Vehicle Capacity field, enter the seating or load capacity of the vehicle.
      9. In the Engine Power field, enter the power output of the vehicle’s engine.
      10. In the Body Type field, select or enter the body style of the vehicle.
      11. In the Year of Manufacture field, enter the year in which the vehicle was manufactured.
      12. In the Engine Type field, enter the type of engine used in the vehicle.
      13. In the Engine Number field, enter the unique identification number of the vehicle’s engine.
      14. In the Date of Registration field, enter the date on which the vehicle was officially registered.
      15. In the Registration Number field, enter the official registration number assigned to the vehicle.
      16. In the Registration Authority field, enter the name of the authority that registered the vehicle.
   4. If you have selected the Precious Metal option;
      1. In the Value of Precious Metal field, enter the estimated value of the precious metal.
   5. If you have selected the Deposits option;
      1. From the Select Term Deposit list, select any of the term deposits mapped to the business' customer ID.
      2. In the Amount to be Linked field, enter the amount to be linked as collateral.
   6. If you have selected the Bonds option;
      1. From the Type of Bond list, select type of bond being added as collateral.
      2. In the Bond Value field, enter the estimated value of the bond.
   7. If you have selected the Stocks option;
      1. In the Value of Stocks field, enter the estimated value of the stocks.
   8. If you have selected the Life Insurance option;
      1. In the Insurance Value field, enter the estimated value of the insurance.
   9. If you have selected the Accounts Receivable option;
      1. From the Type of Accounts Receivable list, select the type of accounts receivable being added as collateral.
      2. In the Account Receivable Value field, enter the estimated value of the accounts receivable.
   10. If you have selected the Inventory option;
       1. From the Type of Inventory list, select the type of inventory being added as collateral.
       2. In the Inventory Value field, enter the estimated value of the inventory.
2. Click the Add another Collateral link to add additional collateral details.
   The system displays the another set of fields in which you can capture information pertaining to another collateral.
3. Perform any of the following actions:
   1. Click Continue to proceed to the next step in the application.
   2. Click Back to navigate back to the previous step in the application.
   3. Click the Scan QR-code anytime to continue on mobile link to continue the application on mobile or tablet device.
   4. Under the kebab menu, perform any of the following actions:
      1. Click the Save and Continue Later option to save the application.
      2. Click the Continue on Mobile option to continue the application on a mobile device.