Setting Loan Schedule Preferences

4.3.1 Setting Loan Schedule Preferences

Schedule preferences are the attributes of the repayment schedules, defined for the loan in the Schedules tab of Loans and Commitment-Contract Input screen.

When you are entering a loan for the first time, you can define certain attributes for it. They include:

Disbursement preferences, whether it is auto or manual
Principal liquidation and liquidation order
The amortization type, if the loan has been specified with amortized schedules
Whether holidays are to be ignored at the time of drawing up repayment schedules
The behaviour of schedules when they fall due on the holiday

Table 4-10 Loan Schedule Preferences

Field	Description
Disbursement Mode	The Oracle Banking Corporate Lending supports the following modes for loan disbursements: Auto Manual Note: Ensure to maintain disbursement schedules for Auto disbursement mode.If you select the mode Auto, then the system automatically disburses the loans based on the disbursement schedule defined for the contract. In the manual mode, disbursement happens on demand. In this case, disbursement schedules need not be maintained for the PRINCIPAL component. Also, you can collect any applicable charges related to the disbursement at the time of making the disbursement. These charges are defined at the product level and contract level. When a loan is disbursed either in the manual or in the auto mode, the system utilizes the new collateral, local collateral, facility, or liability only for the amount that is disbursed. You have to specify the disbursement mode as a preference at the time of setting up a Corporate Lending at the product level and gets defaulted to the contract. You can modify at the contact level.
Stop Disbursement	If this check box is selected, then the system do not allow you to make further disbursements whether it is a Auto or Manual disbursement.
Distribute Disbursement	It distributes the amount financed equally to disbursement schedules based on number of disbursement schedules.

Field

Description

Disbursement Mode

The Oracle Banking Corporate Lending supports the following modes for loan disbursements:

Auto
Manual

Note:

Ensure to maintain disbursement schedules for Auto disbursement mode.If you select the mode Auto, then the system automatically disburses the loans based on the disbursement schedule defined for the contract.

In the manual mode, disbursement happens on demand. In this case, disbursement schedules need not be maintained for the PRINCIPAL component.

Also, you can collect any applicable charges related to the disbursement at the time of making the disbursement. These charges are defined at the product level and contract level.

When a loan is disbursed either in the manual or in the auto mode, the system utilizes the new collateral, local collateral, facility, or liability only for the amount that is disbursed.

You have to specify the disbursement mode as a preference at the time of setting up a Corporate Lending at the product level and gets defaulted to the contract. You can modify at the contact level.

Stop Disbursement

If this check box is selected, then the system do not allow you to make further disbursements whether it is a Auto or Manual disbursement.

Distribute Disbursement

It distributes the amount financed equally to disbursement schedules based on number of disbursement schedules.

Parent topic: Preferences for a Loan