1. Bilateral Loans User Manual
  2. Bilateral Loans
  3. Loan Servicing

1.5 Loan Servicing

Use loan servicing process to manage various life cycle events of a corporate loan account after drawdown process is complete.

Loan Servicing provides a facility to manage various life cycle events of a corporate loan account after drawdown process is complete. Following actions are possible under servicing:
  • Loan Rollover
  • Financial Amendment
  • Non-Financial Amendment
  • Loan Payment
Rollover denotes the renewal of a loan. The outstanding principal of the loan is rolled over with or without outstanding interest for an extended maturity date. With Financial amendment user can initiate changes to following loan parameters:
  • Additional disbursement of Principal
  • Changes to interest details
  • Increase or Decrease of Maturity date
Non-financial amendments include changes to:
  • Credit line and Collaterals
  • Payment Schedule
Loan Payment option enables the user to make pre-payment, partial payment, or repayment towards the existing loan contract.

The process of Corporate loan servicing gets initiated when the bank RM approaches a customer to improve his loan status or when the customer approaches the bank requesting for any of the above servicing options based on his corporate needs. The loan servicing process moves forward only based on the customer interest.

List of stages and corresponding data segments can be configured. The list of stages pre-defined for the Loan servicing are:
  • Application Entry
  • Enrichment
  • Loan Approval

The basic details to request for servicing of a corporate loan for a borrower can be initiated using this Initiation screen, provided you have the required access rights.

To initiate Loan Servicing

  1. On the Homepage, from Corporate Lending, under Operations, click Bi-lateral.
  2. On Bi-lateral menu, click Financial Amendment.
    The Financial Amendment screen is displayed.

    Figure 1-6 Financial Amendment

    Description of Figure 1-6 follows
    Description of "Figure 1-6 Financial Amendment"
    Click Advanced Search to provide further details to search for a loan contract as illustrated.

    Figure 1-7 Advanced Search

    Description of Figure 1-7 follows
    Description of "Figure 1-7 Advanced Search"
  3. You can select an appropriate servicing operation - Financial Amendment, Non-financial Amendment, Rollover, or Payment.
  4. In basic search you can search based on customer or facility code to choose a contract that needs to be serviced.
    • Customer Number- The LOV attached to this field is the list the customer available
    • Facility Code - The LOV attached to this field is the list the facility codes in the system.
  5. Click Search to list the contracts that meets the search criteria for you to choose a contract number. Advanced search option can be activated using the toggle in the search bar where you can additionally search based on Loan start and end dates or the Loan currency and amount.

    After selecting a contract system populates the appropriate business product applicable for the loan contract. You can choose a business product and the value date for the changes to be effective. On click of initiate, a unique Application Registration number is auto generated by the system, which are used throughout the process and for further tracking. Based on servicing type selected, the system derives the process flow for Loan servicing with the configured list of data segments and the process gets instantiated.

    Based on the user rights, the system navigates the user to the first manual stage of the manual stage of the process flow

Related Topics

Parent topic: Bilateral Loans