9.5 Progressive Disbursement
When a limit managed in ELCM is attached to a Bilateral Loan, as soon as the loan is saved, full funded amount (that is Amount financed) should update the available balance on the limit and the amount financed but not disbursed amount is blocked on the limit.
During each disbursement, the disbursed amount (total or partial) must be unblocked from the limit and utilize it against the line. This same amount must therefore be considered as used on the limit and available limit balance should get reduced progressively with every disbursed amount. When entire loan amount is disbursed the block against the limit should be NIL.
On change of line during the contract life cycle, system should unblock/un-utilize the amount allocated with the existing line and make the block/utilization to the new line.
The Progressive Disbursement functionality is enabled only if you select ENABLE ELCM BLOCKING DURING BOOKING check box in Loan Parameters screen. By default this field is not enabled.
Contract Creation
During contract creation with manual disbursement/future dated auto disbursement, the system sends the block request to ELCM for the amount financed/undisbursed amount for the contract as block amount.Block reference number is system generated unique number which is used by Limits product processor (ELCM) to block the Facility/Collateral. This is a read-only display field in the linkages tab and this block reference will be displayed only after the block is created for facility/line at ELCM side.
Block reference number is system generated unique number which is used by Limits product processor (ELCM) to block the Facility/Collateral. This is a read-only display field in the linkages tab and this block reference is displayed only after the block is created for facility/line at ELCM side.
After contract creation available amount of the line gets reduced to the contract amount and the same gets added as the Block amount.
Manual Disbursement
The disbursement amount is unblocked and utilized in ELCM side.That is, after manual disbursement block amount for the line gets reduced to the disbursement amount and the same gets added as the utilized amount.Value Amendment
For ELCM blocked funds, if you change the line code to a new line code then the system performs the following:- Updates the Utilized Amount and Blocked Amount for the new Line Code with the disbursed and un-disbursed amount respectively.
- Updates the Utilized Amount and Blocked Amount for the old Line Code with disbursed and un-disbursed amount respectively.
Parent topic: Making Additional Disbursements and Rate Changes