6.4.3.2 Installment Loan

The ADD PRODUCT screen for the Installment Loan is common for all other Loan Products and Line of Credit Product.

Figure 6-15 Installment Loan Screen

1. Enter the following details for Installment Loan Product Type:
   • Currency
   • Product
   • Product Name
   • Profitability Curve Definition
   • Pricing Methodology
   • Interest Rate Type
   • Fixed Rate Duration
   • Fixed Rate (%)
   • Floating Rate Benchmark (if Fixed and Floating is selected for Interest Rate Type)
   • Spread (in BPS) (if Fixed and Floating is selected for Interest Rate Type)
   • Repricing Frequency (if Fixed and Floating is selected for Interest Rate Type)
   • Transfer Pricing Parameters

     The Real-Time Transfer Pricing service is optional as an additional service and can be invoked as mentioned in the Mortgage product type.

     The Relationship Manager has also the flexibility to input the values directly without the service.

   Figure 6-16 Installment Loan Product Type

   
   

   

   
   
2. Enter the following Account Details.

   Table 6-13 Account Details Fields and Descriptions

   Field	Description
   Start Date	Select the Start Date of the deal from the calendar.
   Maturity Tenure	Select the Date of Maturity for the deal either in Days or Months, or Years.
   Amount	Enter the deal amount.
   Origination Fees	Enter the amount of fees or activation fees that have been charged for the deal.
   Annual Fees	Enter the annual amount of fees applicable for the account.

3. Capital Charge Parameters: Enter the following details under Capital Charge Parameters:

   Table 6-14 Capital Charge Parameters Fields and Descriptions

   Field	Description
   Customer Sub-Type	Enter a value in terms of percentage for the Funding charge.
   Expected Loss	This is the expected loss to be generated on the account. Enter an amount.
   Unexpected Loss	This is the unexpected loss to be generated on the account. Enter an amount.

4. Risk Mitigants Parameters: Click Create Mitigant and enter the following details under Risk Mitigants Parameters.

   Table 6-15 Risk Mitigants Parameters Fields and Descriptions

   Field	Description
   Mitigant Name	Name of the Mitigant.
   Mitigant Type	Type of Mitigant.
   Collateral Type	Type of the Collateral.
   Start Date	Collateral start date.
   Maturity Date	Collateral maturity date.
   Mitigant Issuer	The Authority that issues the Mitigant.
   Issuer Type	The type of Authority that issues the Mitigant.
   Rating Source	The Source that gives the Rating to the Mitigant.
   Issuer Rating	The Rating of the Issuer.
   Mitigant Value	The value of the Mitigant.
   Currency	The currency of the Mitigant.

5. The entered Mitigant Details will be added in a row. You can perform the following actions against the Mitigant Details row:
   • Edit: To edit the Mitigant Detail, click the Edit icon. This opens the Mitigant Details in Edit Mode.
   • View: To view the Mitigant Detail, click the View icon. This opens the Mitigant Detail in View Mode.
   • Delete: To delete the Mitigant Detail, click the Delete icon. This dateless Mitigant Detail.
6. Enter the Profitability Drivers.