2.1.5 Collateral Details

This topic provides the systematic instructions to capture the collateral which is offered by the customer as security for Overdraft limit.

Collateral details will be sent to the host to be made available under local collateral. The relevant service APIs will be made available for both Push and Pull details of collaterals.

Capturing of Collateral details in Oracle Banking Origination is also enabled with an option to onboard collateral using the Oracle Banking Credit Facility Process Management integration services. In such cases, the collateral details will be sent to the Collateral onboarding systems for performing the Valuation, obtaining the Legal opinion and recording the perfection details. These details will be made available on Oracle Banking Origination in the respective Data segments in read only mode.

The user can acquire the application from Free Tasks list.

To add collaterals details:

1. Click Next in the previous data segment to proceed with next data segment, after successfully capturing the data.
2. Click Add Collateral to capture the collateral details.

   The Collateral Details screen displays.

   Figure 2-13 Collateral Details

   
   

   
   Description of "Figure 2-13 Collateral Details"

   
   

If the Collateral Type is selected as Term Deposit, the warning message displays when the Overdraft Limit expiry date is more than the Maturity Date of the term deposit.

3. Specify the details in the relevant data fields.

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

   Note:

   The fields which are marked as Required are mandatory.

   Table 2-9 Collateral Details - Field Description

   Field	Description
   Add	Select the collateral. The available option are: New Collateral Existing Collateral Note: When Oracle Banking Retail Lending Servicing is the host, the system supports secured loan origination using existing collateral. The existing collateral details of the customer are fetched from the collateral product processor. If sufficient unutilized collateral balance is available, it can be used for a new loan for the customer(s).
   Applicant	Select the applicant from the drop-down list to fetch existing collateral details. This field appears when the Existing Collateral option is selected.
   Primary Collateral	Select the primary collateral. The available option are: Yes No
   Collateral Type	Select the collateral type. Available options are: Property Guarantee Vehicle Precious Metal Deposits Bonds Stocks Insurance Accounts Receivable Inventory (Stock of Material) The above options displays based on the initial setup.
   Category	Select the collateral category from the drop-down list. Available options are: If Collateral type is selected as Property Residential Property Vacant Land Under Construction If Collateral type is selected as Guarantee Personal Guarantee Guarantee and Indemnity Government Guarantee Family Guarantee If Collateral type is selected as Vehicle Passenger Vehicle Commercial Vehicle If Collateral type is selected as Precious Metal Precious Metal If Collateral type is selected as Deposits Term Deposit If Collateral type is selected as Bonds Secured Bonds Unsecured Bonds Investment Bonds If Collateral type is selected as Stocks Domestic Stock If Collateral type is selected as Insurance Life Insurance If Collateral type is selected as Accounts Receivable Bill Receivable Trade Receivable If Collateral type is selected as Inventory (Stock of Material) Stock of Raw Materials Finished Goods Packaging Materials The above options displays based on the initial setup.
   Collateral Subcategory	Select the collateral subcategory from the drop-down list. The drop-down options are shown based on the configuration.
   Vehicle Details	This section is used to capture vehicle specific details and appears when the collateral type is selected as Vehicle.
   Fetch Vehicle Details	Click this button to open the panel drawer and specify Vehicle Identification Number. Once captured and save the details, the system will populate the details in the respective fields of vehicle details section. This button appears only if the Enable Fetch Vehicle Details field is set as True on the Origination Preferences screen.
   Vehicle Identification Number	Specify the vehicle identification number. This field will be defaulted and disabled if the external interface for fetching vehicle details is enabled and data is received.
   Vehicle Condition	Select the vehicle condition from drop-down list. The available options are: Used New
   Make	Specify the vehicle manufacturer name.
   Model	Specify the vehicle model.
   Trim	Specify the trim of the vehicle that defines its specific version, feature package, and equipment level.
   Vehicle Type	Select the vehicle type from the drop-down list.
   Year of Manufacture	Specify the year of manufacture for the vehicle.
   Kilometers/Miles	Select the kilometers or Miles for the vehicle. The available options are: Kms Miles
   Distance Traveled	Specify the distance traveled by the vehicle. This field appears only if the vehicle condition is selected as Used.
   Engine Type	Select the engine type of the vehicle from the drop-down list. The available options are: Petrol Diesel Electric
   Engine Number	Specify the engine number of the vehicle.
   Chassis Number	Specify the chassis number of the vehicle.
   Registration Date	Select the registration date of the vehicle.
   Register Number	Specify the register number for the vehicle.
   Registration Authority	Specify the registration authority for the vehicle.
   Passenger Vehicle Details	This sub-section appears when the collateral category is selected as Passenger Vehicle. In this section, the user can capture the additional details of passenger vehicle.
   Sub-Type	Select the sub type of the passenger vehicle from the drop-down list.
   Purpose of Vehicle	Specify the purpose of the passenger vehicle.
   Passenger Vehicle Capacity	Specify the capacity of passenger vehicle.
   Engine Power	Specify the engine capacity of the passenger vehicle.
   Body Type	Select the body type of the passenger vehicle from the drop-down list.
   Commercial Vehicle Details	This sub-section appears when the collateral category is selected as Commercial Vehicle. In this section, the user can capture the additional details of commercial vehicle.
   Sub-Type	Select the sub type of the commercial vehicle from the drop-down list.
   Purpose of Vehicle	Specify the purpose of the commercial vehicle.
   Unit of Capacity	Select the unit of capacity of Vehicle from the drop-down list. The available options are: Grams Kilograms Tonnes Pounds Milligrams
   Vehicle Classification	Specify the vehicle classification that define vehicles by type, weight, height, number of axles and so on.
   Body Type	Select the body type of the commercial vehicle from the drop-down list.
   Vehicle Capacity	Specify the capacity of commercial vehicle.
   Number of Wheels	Specify the number of wheels for the vehicle.
   Collateral Details	In this section, user can capture the collateral details. Based on the collateral type, the below fields are dynamically appears.
   Term Deposit Number	Select the Term Deposit Number from the list. The Term Deposit which has crossed the maturity date and the Allow Collateral Linkage disabled, will not appear in the list. This field appears only if the collateral type is Deposits.
   Maturity Date	Select the Maturity Date of the term deposit. This field appears only if the collateral type is Deposits.
   Purchase Property	Specify whether the collateral property being added is being purchased. This field appears only if the collateral type is Property.
   Collateral Value	Specify the collateral value.
   Estimated Market Value	Specify the estimated market value for reusing existing collateral for a new loan. This is the current realizable market value of the collateral, which already exists. This field appears only when an existing collateral is reused.
   Available Linkage Amount	Displays the available linkage amount. During reuse, the system recalculates as Original available linkage amount + Appreciation (if any). If Estimated Market Value ≤ Original Collateral Value, no appreciation is applied.
   Linked Amount	Specify the linked amount.
   Guarantee Type	Select the type of guarantee from the drop-down list. This field appears only if the collateral type is Guarantee.
   Hair Cut %	Specify the percentage of Hair Cut.
   Collateral Amount To Be Considered	Displays the collateral amount to be considered. Collateral Amount = (Hair Cut % X Collateral Value)
   Mark Collateral For Refinance	Specify if an added collateral should be consider for refinance. This field appears when the Refinance is enabled.
   Collateral Description	Specify the collateral description.
   Charge Type	Select the charge type from the drop-down list. The available options are: Assignment Hypothecation Lien Pledge Mortgage Registered Mortgage Equitable Mortgage The above options displays based on the selected valuation rule as configured on the Origination Preferences screen.
   Seniority of Charge	Select the seniority of charge from the drop-down list. The available options are: Primary Secondary Pari Pasu Pledge Hypothecation The above options displays based on the selected charge type as configured on the Origination Preferences screen.
   Applicants	This section displays the applicants name and remarks that are involved in the loan application. These applicants are also related to the added collateral. This field appears only if the collateral type is Guarantee.
   Guarantor	This section displays the guarantor name. This field appears only if the collateral type is Guarantee.
   Property Location	In this section, user can enter property address which is added as collateral. This section appears only if user select Property from the Collateral Type list.
   Address	Specify the address to search already captured address. Based on configuration, on entering few letters, the system fetches the related address that are already captured. Based on the selection, the fields are auto populated in the address section.
   Address Line 1	Specify the building name.
   Address Line 2	Specify the street name.
   Address Line 3	Specify the city or town name.
   Country	Select and search the country code.
   State/Country Sub Division	Specify the state or country sub division.
   Zip Code/Post Code	Specify the zip or post code of the address.
   Collateral Ownership Details	In this section, specify the ownership details of the collateral. This section displays all the customers that are involved in the loan application.
   Liability ID	Displays the Liability ID.
   Liability Description	Displays the Liability description.
   Add	Click this button to add the collateral ownership details.
   Customer Name	By default, displays the primary customer name. User can add more customer name to include ownership percentage. Select the customer name from drop-down list if multiple applicants associated with application.
   Ownership Percentage	By default, displays the percentage of the ownership of the primary customer. Specify the ownership percentage if multiple applicants associated with application.
   Remark	Specify the remark of the customer.
   Action	Perform one of the following actions: Click to edit the saved ownership details. Click to delete the saved ownership details. Click to save the added ownership details. Click to cancel the added ownership details.
   Total Collateral Value	Displays the total value of collateral. This field will be auto updated based on the number of collaterals.
   Cover Available	Displays the cover available. This field will be auto updated based on the number of collaterals.
   Market LTV	Displays the market loan-to-value.
   Bank LTV	Displays the bank loan-to-value.

   Note:

   All the fields are fetched from Oracle Banking Credit Facilities Process Management in read only mode, if integrated with Oracle Banking Credit Facilities Process Management.
4. After capturing the details, perform one of the following actions on this screen.
   • Click Save to save the collateral details.
   • Click Cancel to cancel the collateral details.
   Create a new tile with the collateral summary on the Collateral Details screen. On saving the collateral details, the system runs the valuation rule maintained on the Origination Preferences screen.

   Figure 2-14 Collateral Details Tile

   
   

   
   Description of "Figure 2-14 Collateral Details Tile"

   
   
5. On the collateral summary tile, perform the following valuation actions by clicking action button.
   The valuation actions is enabled only if the Valuation Rule outcome is set to True on the Origination Preferences screen.

   For more information, refer to the table below.

   Table 2-10 Valuation Action

   Actions	Description
   Initiate Valuation	The Initiate Valuation action appears when Upfront Valuation is enabled for Vehicle collateral and the Valuation Mode is set to External Interface in the Origination Preferences screen. Click the Initiate Valuation action to initiate the collateral valuation request. Upon successful submission in Credit Facility Process Management, the Refresh Valuation Status action is enabled, and the valuation status is updated to Pending on the collateral summary tile.
   Refresh Valuation	Click the Refresh Valuation action to fetch the collateral valuation details. Once the valuation details are successfully retrieved from Credit Facility Process Management, the system enables a View Valuation Details action and updates the valuation status to Available on the collateral summary tile.
   View Valuation Details	Click the View Valuation action to open the Valuation Details screen in read-only mode. For more information, refer to the Valuation Details table below.
   Capture Valuation	The Capture Valuation action appears when Upfront Valuation is enabled for Vehicle collateral and the Valuation Mode is set to Manual as per the valuation rule outcome. Click the Capture Valuation action to open the Valuation Details screen and capture the valuation details for the vehicle collateral. On saving the valuation details, the system will enable the View valuation details action and update the valuation status as Available on the collateral summary tile.

   Figure 2-15 Valuation Details - View (External)

   
   

   
   Description of "Figure 2-15 Valuation Details - View (External)"

   
   

   Figure 2-16 Valuation Details - Capture

   
   

   
   Description of "Figure 2-16 Valuation Details - Capture"

   
   

   Figure 2-17 Valuation Details - View (Manual)

   
   

   
   Description of "Figure 2-17 Valuation Details - View (Manual)"

   
   

   Table 2-11 Valuation Details

   Field	Description
   Add	Click this button to add the valuation details manually.
   Valuation Type	Select the type of valuation from the drop-down list.
   Valuation Amount	Specify the valuation amount.
   Agency Code	Select the valuation agency code from the drop-down list.
   Agency Name	Display the valuation agency name for selected valuation agency code,
   Valuation Date	Select the valuation date.
   Action	Perform one of the following actions: Click to edit the saved ownership details. Click to delete the saved ownership details. Click to save the added ownership details. Click to cancel the added ownership details.

6. Click Next to navigate to the next data segment, after successfully capturing the data. The system validates for all mandatory data segments and data fields. If mandatory details are not provided, the system displays an error message for the user to take an action. The user cannot proceed to the next data segment, without capturing the mandatory data.