1. Bilateral Loans
  2. Disbursing a Loan
  3. Loan Disbursement Details
  4. Specifying the Tenor

4.2.11 Specifying the Tenor

You can enter below tenor details in Loan and Commitment-Contract Input screen.

Table 4-3 Tenor Details

Field Description
Booking Date The date on which the loan disbursement details are entered would be displayed in this screen. This defaults to the system date (today’s date). This date is for information purposes only. The accounting entries are passed as of the Value Date of the loan (initiation date of the loan).
Value Date This is the date on which a loan takes effect. The accounting entries for the disbursement of the loan is passed as of this date. The tenor of the loan begins from this date. Calculations for interest and all the other components based on tenor is from this date onwards.
The system defaults to today’s date. You can enter a Value Date of your choice. The date that you enter can be any one of the following:
  • Today’s date
  • A date in the past
  • A date in the future (you can enter a date in the future only if Future Dating has been allowed for the product)
The Value Date should not be earlier than the Start Date or later than the End Date, defined for the product involved in the loan.
If the liquidation date for any component falls before today’s date, the liquidation entries (as defined by you for the product) are passed if specified to do so, for the product. If the Maturity Date of a loan is earlier than today, maturity entries are also be passed.

Once the loan disbursement details have been stored and authorized, this date can be amended only if the loan has bearing type of interest and NO schedule has been liquidated.

Note:

An override is sought if the Value Date falls on a holiday, in the country of the loan currency.
The maturity date of a loan is automatically calculated using the value date and tenor that you specify for the product associated with the loan. If the product to which the loan is associated is defined with a Standard Tenor, it is defaulted here. You have the option to change the defaulted tenor.

If you enter the maturity date, the tenor of the loan is automatically calculated using the value date and the maturity date.

For a loan with Fixed Maturity Type, the tenor can either be extended or brought backward through the Value Dated Changes function, once the loan has been initiated.

Initiating a Loan with a Value Date in the Future

A future-dated loan is one that has a Value Date later than the date on which it is booked. The Automatic Contract Update function initiates the loan on the Value Date of the loan.

A future Value Date falling on a holiday is initiated either on the previous working day or on the next, depending on your definition for automatic processing at your branch.

All the initiation-related entries specified for the product involved in the loan is passed automatically. If currency conversions are involved, the conversion rates as of the date on which the loan is initiated is taken from the Currency Table.

If the loan is linked to a commitment, the commitment utilization is updated. In addition, the contingent entries passed when the commitment was initiated is reversed to the extent of the loan amount linked (provided this entry is defined for the product). If the available balance in the commitment is not enough to cover the entire loan amount linked, the loan is not initiated. This is reported in the Exception Report.

If there is a rate revision applicable for the future dated loan, on the day it is initiated (that is, on the future Value Date), the rate revision is applied on the loan also. This rate revision could either be due a Floating Rate change or a Value Dated Change.
Original Start Date For a loan that has been rolled-over, this is the date on which the loan was originally initiated. If a loan has been rolled-over more than once, this is the date on which the first loan was initiated.

If you are entering a loan that has already been initiated, you should enter the date on which the loan began. In this case, the date is for information purposes only and for all accounting purposes the Value Date is considered as the date on which the loan was initiated.
Contractual Maturity Date This field is enabled in the OL Contract Online screen, if the product is a Fed Rate product (if, for the product, you have selected the ‘Rolling Loan’ check box in the Loans and Deposits – Product Preferences screen).

You can enter the Maturity Date of the contract here. The principal schedule is based on the contractual maturity date that you enter here.

A new schedule for a contract booked under a Fed Rate product can be defined by amending and extending the Contractual Maturity Date.
Contractual Effective Date This field is enabled in the Loans and Commitment- Contract Input screen, if the product is a Fed Rate product (if, for the product, you have selected the Rolling Loan check box in the Loans and Commitment – Product Preferences screen).

Enter the date on which a new disbursement has been made to the customer involved in the loan contract.

Note:

  • Future dated liquidation is not allowed on these loans. Only forward dated value dated amendment is allowed.
  • The value date of future dated value dated amendment cannot be beyond the contractual maturity date provided by the user for a contract.
Last Available Date The system defaults the contract maturity date as the last availability date. You can specify a new Last availability date of the commitment contract to disallow the commitment availability beyond this date.

The last availability date, you specify here, should be later than the value date and on or prior to, the maturity date of the commitment contract.

Note:

  • You can amend the last availability date as part of contract amendment only before the Last Availability Date.
  • The system does not allow the following activities for this contract, beyond the last availability date of the commitment:
    • Disbursements of new loan contracts.
    • – Value dated amendment for the increase in loan principal.
    • – Value dated amendment for the commitment principal change
  • As part of value dated amendment for the commitment, if the maturity date is extended, then the system displays the message stating the current value of Last Available date. You should make changes to the Last Available date as part of contract amendment activity subsequently.
    • The commitment availability becomes zero on crossing the expiry date.

Parent topic: Loan Disbursement Details