1. Bilateral Loans
  2. Disbursing a Loan
  3. Loan Disbursement Details

4.2 Loan Disbursement Details

Table 4-2 Loan Disbursement Details

Field Description
Template ID A template can be described as a sample contract that has attributes common to many loans in a category (that is, involving a particular product). Once a template is defined, it can be used as a base to enter a loan and only attributes that are specific to the loan you are processing need to be changed. This simplifies the input of disbursement details of a loan.

To use a template you should enter the details of a loan by specifying the template ID of your choice in the OL Contract Details screen.

Entering disbursement details without using a template If you do not want to use a template, do not specify a Template ID. Enter values into all the mandatory fields and save the loan details.

If you do not want to use a template, do not specify a Template ID. Enter values into all the mandatory fields and save the loan details.

For more information on dual authorization, refer to the Dual Authorization in this manual.
Contract Reference Number The contract reference number identifies a loan. It is automatically generated by the system for each loan. The contract reference number is a combination of the branch code, the product code, the date on which the loan is booked (in Julian format) and a running serial number for the booking date.

The reference number consists of a three-digit branch code, a four-character product code, a five-digit Julian Date, and a four-digit serial number.

The Julian Date has the following format:
  • YYDDD
Here, YY stands for the last two digits of the year and DDD for the number of day(s) that has/ have elapsed, in the year.

Example

January 31, 1998 translates into the Julian Date: 98031. Similarly, February 5, 1998 becomes 98036 in the Julian format. Here, 036 is arrived at by adding the number of days elapsed in January with those that elapsed in February (31+5=36).
User Reference Number You can enter any reference number for a loan that you issue. The loan is identified through this number in addition to the Contract Reference Number generated by the system. Two loans cannot have the same User Reference Number. By default, the Contract Reference Number generated by the system is taken as the User Reference Number. You can use this number, besides the loan Reference Number, to retrieve information relating to a loan.
Product Code Every loan that you issue, would involve a specific service that you offer (which you defined as a product). When disbursing a loan, you should specify the product that it involves.

All the attributes of the product that you specify applies to the loan. However, you can change some of these attributes while entering the details of the contract. When you specify the product, the product type, loan or commitment is displayed.
Facility Name If you are entering the details of a commitment contract, the field Facility Name is enabled. You have the option of entering the name of the facility here. When you save the commitment contract, the name that you have entered is displayed alongside the screen name and customer name.

The Facility Name entered for a commitment is also displayed for a loan contract booked under it.

Note:

  • It is not mandatory that you enter the Facility Name for a commitment contract.
  • When you carry out a search for a contract using the Summary screen, you can do so with the Facility Name. All commitment and loan contracts linked to the name is displayed.
  • You are allowed to amend the Facility Name for a commitment contract and if you do so, all loan contracts linked to the commitment contract carries the new Facility Name.
Potential Available Commitment The system displays the potential commitment availability balances on the value date of the forward dated loan. This field is applicable for commitment contract only.

The formula for potential available commitment is the actual commitment available balance minus the sum of future dated uninitiated loan contract amount in commitment currency. While booking a new loan the system validates the commitment availability based on potential available commitment.

Note:

  • As part of new forward dated Loan input, you can link the loan to the commitment in order to identify the reporting commitment and for performing the possible validations.
  • However, the system does not trigger the LINK event at the commitment level as part of the Loan Booking (BOOK event) activity on the booking date of the loan. Hence, the Commitment availability balance is not reduced during the Forward dated Loan Booking.
  • The LINK event triggers at the commitment level during the Forward dated Loan Initiation (INIT event) activity as part of the BOD batch process on the value date of the forward dated Loan. Hence, the commitment availability balances are updated on the value date of the forward dated loan.
  • To consider the possible impact of the future dated loan utilizations, which affect the commitment available balances, the system considers the utilization of the uninitiated forward dated loan contracts along with the actual utilization of the already initiated loans for the potential available balance verifications.
  • If the future-dated loan contract and the commitment contract are of different currencies, then the system updates the commitment availability, applying the provided exchange rate, from the value date of the loan contract.
Customer When entering the details of a loan, you should specify the customer to whom you are issuing it. The category of customers (or the customers themselves) that can be counterparty to a loan is defined for the product. Specify the code of an authorized customer, who falls into a category allowed for the product.
Agent CIF You can select the Agent CIF from the option list. If, for a contract, you specify the Agent CIF, settlement instructions are taken based on this number instead of the Customer code. If you do not specify the Agent CIF, the Customer code is used during settlement.

Note:

If you select an Agent CIF, you have to specify the Settlement Sequence Number (explained later), based on which the settlement instructions are taken. – If you do not select an Agent CIF and specify, instead, a Customer, you can either enter the Settlement Sequence Number or the Settlement Account, based on which the settlement instructions are taken. If you specify both, the Settlement Sequence Number and the Settlement Account, the Settlement Account takes precedence.
SSI Mnemonic The system displays the SSI mnemonic along with settlement sequence number.
EG Number The Entitlement Group Number gets displayed here
CUSIP Number Enter the CUSIP Number for the customer. This number helps to track the securities of the customer.

Note:

  • It is not mandatory that you enter the CUSIP number for a commitment contract.
  • You are allowed to amend the CUSIP No. for a commitment contract and if you do so, all loan contracts linked to the commitment contract carries the new CUSIP number.
  • You cannot amend the CUSIP number for a loan contract. The field CUSIP No. in the loan contract screen displays the CUSIP No. that you have entered for the commitment contract.
External CUSIP/ISIN Specify the external CUSIP/ISIN of the customer.
Ext Deal CUSIP/ISIN System displays the external deal CUSIP/ISIN of the customer.

System displays a value for the commitment, only if the commitment was created as part of STP, and the Tranche has external deal CUSIP/ISIN associated with it.
This topic contains following sub-topics:

Parent topic: Disbursing a Loan