Open Line Loan Details

3.2.14 Open Line Loan Details

Figure 3-6 Open Line Loan Details

Description of "Figure 3-6 Open Line Loan Details"

Table 3-7 Open Line Loan Details

Field	Description
Open Line Loan	Select this check box to allow the loan to remain active even at zero balance (without maintaining any balance). Notes: Open loans should have maturity type as Fixed and maturity date is mandatory. For open loan the contract remains active if the bank wants to disburse more amount to the customer, then VAMI principal increase needs to be done. On repayment of the entire principal, the loan should not be in Liquidated status. Operations such as VAMI can be performed on the Active loan status. Similarly, VAMI for redefining the schedules for such should be made available. The system should add all new principal increases/disbursements to the principal bullet schedule unless it is re-scheduled. Interest is calculated based on schedule defined in the loan account for the disbursed / outstanding amount.
Revolving Type Open Loan	Select this check box if you want the paid amount to be re-disbursed to your account during the contract lifecycle. You can disburse the paid amount either fully or partially (from the payment date to maturity date) using Manual Disbursement (OLDMNDSB) screen. The total due amount should not be greater than that of the amount financed for the contract. Note: Revolving type open loans should be kept open and active even after the loan is fully paid and the customer can redraw the loan after the payment.

Field

Description

Open Line Loan

Select this check box to allow the loan to remain active even at zero balance (without maintaining any balance).

Notes:

Open loans should have maturity type as Fixed and maturity date is mandatory.
For open loan the contract remains active if the bank wants to disburse more amount to the customer, then VAMI principal increase needs to be done.
On repayment of the entire principal, the loan should not be in Liquidated status.
Operations such as VAMI can be performed on the Active loan status.
Similarly, VAMI for redefining the schedules for such should be made available.
The system should add all new principal increases/disbursements to the principal bullet schedule unless it is re-scheduled.
Interest is calculated based on schedule defined in the loan account for the disbursed / outstanding amount.

Revolving Type Open Loan

Select this check box if you want the paid amount to be re-disbursed to your account during the contract lifecycle. You can disburse the paid amount either fully or partially (from the payment date to maturity date) using Manual Disbursement (OLDMNDSB) screen. The total due amount should not be greater than that of the amount financed for the contract.

Note: Revolving type open loans should be kept open and active even after the loan is fully paid and the customer can redraw the loan after the payment.

Parent topic: Setting Product Preferences