1. User Guide
  2. Managing Price Creation and Discovery
  3. Managing Deal Pricing
  4. Adding Product Details
  5. Structured Loan

6.4.3.4 Structured Loan

  1. Enter or select the following details:
    • Currency
    • Product
    • Product Name
    • Profitability Curve Definition
    • Pricing Methodology
      • For Carded Pricing Methodology, select the Card Rate Definition.
      • For User Input Pricing Methodology, select the relevant details based on the Interest Rate Type you select.
    • Interest Rate Type
    • Fixed Rate (in %)
    • Amortization Type

    Figure 6-18 Structured Loan Product Type


    Structured Loan Product Type

  2. Enter the following details under Account Details:

    Table 6-19 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.
    Payment Frequency Enter the frequency of interest payment for the deal in either Days, Months, or Years.
    EMI Details
    • A default EMI Start Date is displayed. You can pick a different EMI start Date from the calendar.
    • Select Enable Variable Payment to define payment details if required.
    Disbursement Type

    Select the Disbursement Type. Following are the options available:

    • Upfront: If Upfront is selected, the entire loan amount is disbursed at the beginning of the product.

      Customers can link an existing CASA account for offsetting purposes or can select a new opening balance as an offsetting balance.

    • Schedule: If the Schedule is selected, then enter the details of the disbursement schedule. Follow these steps to enter the details:
      1. In the Disbursement Schedule Details section, enter the Date and Disbursement Amount.
      2. You can click Add Disbursement to add another Disbursement Schedule if there are multiple disbursements.
      3. You can click Delete adjacent to the Disbursement if you want to delete a schedule.
    Payment Type

    Select the Payment Type. Following are the options available:

    • Upfront: If Upfront is selected, then the equal payments are done periodically by the customer.
    • Scheduled: If scheduled is selected, then enter the details of the payment schedule. Follow these steps to enter the details:
      1. Click the Browser button. The Payment Details Window is displayed.
      2. Select the Payment Schedule details. Automatic Payment Schedule and Define Payment Schedule are the options available.

    Click OK.

    The schedule details are entered.
  3. Transfer Pricing Parameters: Enter the following details under Transfer Pricing Parameters:

    Table 6-20 Transfer Pricing Parameters Fields and Descriptions

    Field Description
    Funding Charge (in %) Enter a value in terms of percentage for the Funding charge.
  4. Capital Charge Parameters: Enter the following details under Capital Charge Parameters:

    Table 6-21 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.
  5. Risk Mitigants Parameters: Click Create Mitigant and enter the following details under Risk Mitigants Parameters.

    Table 6-22 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.
  6. 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.
  7. Enter the Profitability Drivers.