5 Multiple Loan Repayments

This topic provides systematic instructions to repay the loan for multiple accounts at once.

The user can initiate multiple loan settlements using Multiple Loan Repayments screen. The user can search for required loan account(s) based on standard search criteria. The user can delete one or more contracts from the search result. Once user clicks Confirm, the pending accounts listed are initiated for payment.

The user can view the payment due details for the selected loan accounts. The user can debit the account separately for principal, interest and charge components. Debit account for charges component can be captured in the Loan Repayment screen.

In addition, tax component is also applied on the actual payment amount.

To repay the loan for multiple loan accounts:

  1. Perform one of the following navigation to access the Multiple Loan Repayment screen:
    • From the Dashboard, click Menu, then click Accounts, and then click Corporate Loans. Under Corporate Loans, click Multiple Loan Repayment.
    • From the Dashboard, click on the Loan account number link on Corporate Loans Summary widget. On the Corporate Loans Details screen, click kebab menu and select Multiple Loan Repayment.
    • From the Search bar, type Corporate Loans – Multiple Loan Repayment.
    • Access through the kebab menu of the transactions available under Corporate Loans module.
    The Multiple Loan Repayment screen displays.

    Figure 5-1 Multiple Loan Repayment


    Description of Figure 5-1 follows
    Description of "Figure 5-1 Multiple Loan Repayment"

    For more information on fields, refer to field description table below:

    Table 5-1 Multiple Loan Repayment - Field Description

    Field Name Description
    Bulk Reference number Bulk Reference number is auto generated. User can track the payments created under the bulk request.
    Party ID Select the Party ID from the drop-down list.
  2. If required, click Filter icon to filter the contracts.
    The Filter screen displays. User can filter the data with following criteria:
    • Currency
    • Party Reference Number
    • Bill Reference Number
    • Loan Product
    • Loan Amount From
    • Loan Amount To
    • Disbursement To Date
    • Maturity From Date
    • Maturity To Date
  3. Click Apply.
  4. Click Get Contracts.
    The list of loan accounts matching the filter criteria are displayed. The user can review the list of loan accounts and remove the accounts to exclude them from payment.

    Figure 5-2 Multiple Loan Repayment - Get Contracts


    Description of Figure 5-2 follows
    Description of "Figure 5-2 Multiple Loan Repayment - Get Contracts"

  5. Click Submit.
    Payment requests are submitted to the loans mid-office Oracle Banking Corporate Lending Process Management (OBCLPM) individually. For submitted payment request, the payment application is created in Oracle Banking Corporate Lending Process Management. The status of each payment application can be tracked in the application tracker.
  6. If user wants to delete any loan account, select the loan account and click Delete.
  7. If user wants to repay partial or full amount, specify the amount in the Repayment Amount field.
    Based on the amount specified, the system takes partial or full payment amount.

    Figure 5-3 Multiple Loan Repayment


    Description of Figure 5-3 follows
    Description of "Figure 5-3 Multiple Loan Repayment"

    For more information on fields, refer to the field description table below:

    Table 5-2 Multiple Loan Repayment - Field Description

    Field Name Description
    Loan Account Details Displays the loan account details.

    Amount Financed

    Displays the amount to be financed.
    Total Outstanding Displays total loan outstanding amount.
    Repayment Amount Displays loan repayment amount.
    Start Date Displays the loan start date.
    Maturity Date Displays the loan maturity date.
    Source Account (Principal) Displays the source account from which principal amount is debited.

    Source Account (Interest)

    		Displays the source account from which interest amount is debited.

    Source Account (Charge)

    		 Displays the source account from which charge amount is debited.
    Deal Reference Number Displays the deal reference number. There are no validations associated with deal reference number. It is used for reference purpose.
  8. Click Confirm.
    A confirmation message displays the multiple loan repayment with the transaction reference number.

    Figure 5-4 Multiple Loan Repayment- Confirm Screen


    Description of Figure 5-4 follows
    Description of "Figure 5-4 Multiple Loan Repayment- Confirm Screen"

    User can also perform the following actions:

Following example explains the amount allocation for Principal, Interest, Charges component for the repayment amount entered of a loan contract.

During liquidation of installment payment, the charge component is given priority.

Example for Installment Payment

Application Date = Installment date = 15th February 2022

Total Principal Outstanding = USD 25,000.00

Table 5-3 Example 1

Component Amount Due (15th February 2022)
Principal $10,000.00
Interest $1,200.00
Charges $100.00

The user can input USD 11,300.00 in the Repayment Amount. The entire amount due is paid off after the transaction is approved in OBCL mid-office.

The user can input USD 10,000.00 in the Repayment Amount, the amount due after successful payment is as follows:

Table 5-4 Example 2

Component Amount Due (15th February 2022)
Principal $8,700.00
Interest $0.00
Charges $0.00

Liquidation order defined at the product: Interest and Principal

Partial pre-payment

Application Date = 15th February 2022

Total Principal Outstanding = USD 25,000.00

Table 5-5 Example 3

Component Amount Due (15th February 2022)
Principal $0.00
Interest $1,200.00
Charges $100.00

Once the user specifies USD 5,000.00 in the Repayment Amount, the amount due after successful payment is as follows:

Table 5-6 Example 4

Component Amount Due (15th February 2022)
Principal $0.00
Interest $0.00
Charges $0.00

Liquidation order defined at the product: Interest and Principal

The residual excess amount of USD 3,700.00 is liquidated against the Principal component. The repayment schedule adjustments take place based on the product configurations in OBCL.

Full pre-payment

Application Date = 15th February 2022

Total Principal Outstanding = USD 25,000.00

Table 5-7 Example 5

Component Amount Due (15th February 2022)
Principal $10,000.00
Interest $1200.00
Charges $100.00

The user can specify USD 25,000.00 in the Repayment Amount, the amount due after successful payment is as follows:

Table 5-8 Example 6

Component Amount Due (15th February 2022)
Principal $0.00
Interest $0.00
Charges $0.00

Liquidation order defined at the product: Interest and Principal

The residual excess amount of USD 13,700.00 is liquidated against the Principal component.