Loan Product Preferences

This topic describes the loan product preferences details.

The Loan Product Preference screen appears when the user selects the Product Category as Individual to configure loan preferences.

To add loan preference:

Click Next in previous data segment to proceed with next data segment, after successfully capturing the data.
Specify the details in the relevant data fields. The fields which are marked with Required are mandatory. For more information on fields, refer to the field description table.

Figure 1-5 Business Product Preference – Loan Product

Description of "Figure 1-5 Business Product Preference – Loan Product "

Table 1-5 Business Product Preference – Loan Product- Individual

Field Name	Description
Common Configuration Specify the common configurations for the business product.
Residential Status Allowed	Select the option for which the business product is applicable for. The available options are: Resident Non-Resident Both
Customer Status Allowed	Select the option for which the business product is applicable for. The available options are: Major Minor Both Not Applicable
Currency Allowed	Select the currency that are allowed for the business product. System allows to select multiple currencies, if applicable. The list of currencies appears based on the host configuration.
Minimum Age	Specify the minimum age of the applicant who are eligible to open the account for the business product being created. Select the period from the drop-down box. The available options are: Days Month Year
Maximum Age	Specify the maximum age of the applicant who are eligible to open the account for the business product being created. Select the period from the drop-down box. The available options are: Days Month Year
Inactive Application Expiry Period	Specify the period after which the application must be marked as Expired. Select the period from the drop-down box. The available options are: Days Month Year Once the application has expired, no further lifecycle activity can happen for that application.
Branch	Select one of the following options: Allowed – Select it to indicate and specify the branches where the account under the specified Business Product are allowed to be opened. Disallowed – Select it to indicate and specify the branches where the account under the specified Business Product are not allowed to be opened. System allows to select Disallowed and keep it blank so that the Business Product is allowed for all the branches.
Financial Details Validity Period	Specify the validity period for financial details of the applicant. Select the period from the first drop-down box. The available options are: Days Month Year Select the numeric period from the second drop-down box.
Allow Purpose Types	Select the purpose types that are allowed for business product. The system allows user to select multiple purpose types. The available options are: Buy a New Home Construction Remortgage with US Home Improvement / Renovation Motor Vehicle – New Motor Vehicle – Used Personal Education Other This field appears if the Loan Account option and Home Loan option is selected from the Product Type list and Product Sub Type list respectively. If you configure purpose types for loan product then purpose type list appears while updating Product Details throughout the account opening process. The above option displays based on the initial setup.
Lender Mortgage Insurance	Search and select the lender mortgage insurance rule that are defined. This field appears if the Loan Account option and Home Loan option is selected from the Product Type list and Product Sub Type list respectively.
Allowed Applicant Roles	Specify the applicant roles that are allowed to apply this product. The available roles are as below: Primary Joint Guarantor Custodian Guardian Cosigner The option in this list appears for selection based on the configuration. This selected roles gets reflected in the Applicants data segment while capturing an applicant information in an application.
Solicitor Details	Specify whether the solicitor details are allowed to capture while submitting this products account opening application.
Condition &Covenants	Specify whether the conditions and covenants are allowed to capture while submitting this products account opening application.
Customer Category	Select one of the following options: Allowed – Select it to indicate and specify the customer category where the account under the specified Business Product are allowed to be opened. Disallowed – Select it to indicate and specify the customer category where the account under the specified Business Product are not allowed to be opened. The system allows to select Disallowed and keep it blank so that the Business Product is allowed for all the branches.
Early KYC	Specify whether user wants to enable the early KYC feature to speedup KYC process of an applicant. If this option is selected then the KYC call is trigger to Oracle Banking Party Services once the applicant data is captured in the application.
Simplified Application	Specify whether user wants to set simple process of account opening for this product. In this process, the Initiation and the Application Entry stages are combined for submitting the account opening application.
Supported Term Units	Select the term units. The available options are: Years Months Days The option selected as term unit appears to set the tenure in the Loan Details data segment.
Configurations for Loan Products In thi section specify the configurations for the loan products.
Threshold Preference In this section you can capture the threshold preference of loan product.
Loan Currencies	Displays the currency based on the Currency Allowed configured in the Common Configuration tab above.
Minimum Term Tenure Basis	Select the minimum term tenure. The available options are: Days Month Year
Minimum Term	Specify the minimum tenure of the loan for the selected currency.
Maximum Term Tenure Basis	Select the maximum term tenure. The available options are: Days Month Year
Maximum Term	Displays the maximum tenure of the loan for the selected currency.
Minimum Amount	Displays the minimum amount of the loan for the selected currency.
Maximum Amount	Displays the maximum amount of the Loan for the selected Currency.
Offer Preferences In this section you can set the offer related preference for loan product.
Offer Amendment	Select to indicate whether the offer is allowed to amend.
Offer Expiry Period	Select the expiry period of an offer in days, months and years. Enter the count. OR Select the up and down arrow to increase or decrease the count.
Offer Acceptance Method	Select the method to accept the offer. The available options are: Manual Auto
Feature Preference In this section you can capture the features preference for loan product.
Multiple Disbursement	Select the toggle if multiple disbursement is allowed for the loan accounts.
Interest Tolerance %	Specify the maximum interest margin, the user can provide for the loan account. You can specify the maximum value as 100.00%. Tolerance Percentage = Interest Rate Interest Tolerance Percentage.
Allowed Stage Sequence	Select the rule to set the stage sequence which is allowed for repayment schedule.
Interest Rate Treatment	Select the interest rate treatment from the drop-down list. The available options are: At Offer Issue Stage At the Time of Loan Account Creation Pegged Period If Pegged Period is selected, you need to additionally select the period from Month or Year and enter the numeric value for the Pegged Period definition.
Armed Forces Benefits Applicable	Select to indicate the armed forces benefits are applicable to the loan product.
Customer Contribution	Select to indicate the customer contribution feature is applicable. This fields appears only if the Personal Loan option is selected from the Product Sub Type list. This flag has below mentioned impact: If the user sets the customer contribution as applicable, they can input the value in both the Applied Loan Amount and Customer Contribution fields. The Product Details and Loan Details data segment auto-calculate and display the Requested Loan Amount based on the inputs. If the customer contribution is set as not applicable then the Applied Loan Amount and Customer Contribution fields are not applicable and will not appears in the Product Details or Loan Details data segment for loan origination. The user can input the Requested Loan Amount value.
LTV%	Specify the percentage for Loan to Value (LTV). LTV = Loan Amount / Collateral Value This field is displayed, if Product Sub Type is selected as Home Loan in Business Product Details segment.
Eligibility Calculation Method	Select the required option for the eligibility calculation method from the drop-down list. The available options are: Net Income Method Eligibility Amount = (Net Savings / EMI per Lakh) 100000 FOIR Method Eligibility Amount = (Gross Income FOIR% - Financial Liability) / EMI per Lakh 100000 Note: Banks will compare the eligible amount as per FOIR and LTV, and the lowest eligible amount will be considered. This field is displayed, if IPA Applicable is selected in Business Product Details segment.
FOIR%	Specify the FOIR percentage. This field is displayed if Eligibility Calculation Method is selected as FOIR Method.
IPA Expiry Period	Select the IPA expiry period. The available options are: Days Months Years This field is displayed if IPA Applicable is selected in Business Product Details segment.
Stage	Select the repayment type allowed for the loan product based on the host product mapped with the business product. The available options are: EMI IOPM POIM FPI PRS BULLET Interest Only Installments Moratorium The above options displays based on the initial setup.
Max Term (<Term Unit>)	Specify the maximum term which is applicable for the loan product. The columns for setting maximum term appears for the respective term units based on the term units select in the Supported Term Units field.
Default Term <Term Unit>	Specify the default term which is applicable for the loan product. The columns for setting maximum term appears for the respective term units based on the term units select in the Supported Term Units field.
Repayment Frequency	Select the repayment frequency for the repayment stage. The available options are: Monthly Quaterly Half Yearly Yearly Not Applicable
Default Frequency	Select the default frequency for the repayment stage. The available options are: Monthly Quaterly Half Yearly Yearly Not Applicable
Action	Select the actions to perfrom on the added record. : To save the added record. : To edit the added record. To delete the added record.
Credit Decision Service Flags In thi section capture the Credit Decision Service Flags.
Risk Based Pricing Applicable	Select the toggle if Risk based pricing is allowed for the loan accounts.
Application Based	Select the toggle if the scorecard calculation should be considered based on the application.
Primary Applicant Based	Select the toggle if the scorecard calculation should be considered based on the Primary applicant.

If the Product Category is selected as Small and Medium Business:

Figure 1-6 Business Product Preference – Loan Account Product (SMB)

Description of "Figure 1-6 Business Product Preference – Loan Account Product (SMB)"

Table 1-6 Business Product Details – Field Description

Field	Description
Common Configuration	Specify the common configurations for the business product.
Business Demography	Select the option for which the business product is applicable for. The available options are: Domestic Overseas
Currency Allowed	Select the currency or currencies that are allowed for the business product. System allows to select multiple currencies, if applicable.
Inactive Application Expiry Period	Specify the period after which the application must be marked as Expired. Select the period from the drop-down box. The available options are: Days Month Year Once the application has expired, no further lifecycle activity can happen for that application.
Branch	Select one of the following options: Allowed – Select it to indicate and specify the branches where the account under the specified Business Product is allowed to be opened. Disallowed – Select it to indicate and specify the branches where the account under the specified Business Product is not allowed to be opened.
Financial Details Validity Period	Specify the validity period for financial details of the applicant. Select the period from the first drop-down box. The available options are: Days Month Year Select the numeric period from the second drop-down box.
Allow Purpose Types	Select the purpose types that are allowed for business product. System allows to select multiple purpose types, if applicable. The available options are: Buy a New Home Construction Remortgage with US Home Improvement / Renovation Motor Vehicle – New Motor Vehicle – Used Personal Education Other If you configure purpose types for loan product then purpose type list appears while updating Product Details throughout the account opening process.
Allowed Applicant Roles	Specify the applicant roles that are allowed to apply this product. The available options are: Primary Joint Guarantor
Solicitor Details	Specify whether the solicitor details are allowed to capture while submitting this products account opening application.
Condition & Covenants	Specify whether the conditions and covenants are allowed to capture while submitting this products account opening application.
Customer Category	Select one of the following options: Allowed – Select to indicate whether the specified categories are allowed to open an account for selected product. Disallowed – Select to indicate whether the specified categories are not allowed to open an account for selected product. The system allows to select Disallowed and keep it blank so that the Business Product is allowed for all the branches.
Supported Term Units	Select the term units. The available options are: Years Months Days The option selected as term unit appears to set the tenure in the Loan Details data segment.
Configuration for Loan Products	Specify the configurations for Loan products.
Threshold Preferences	In this sections you capture threshold preferences for loan product.
Loan Currencies	Displays the currency based on the Currency Allowed configured in the Common Configuration tab above.
Minimum Term Tenure Basis	Select the minimum term tenure. The available options are: Days Month Year
Minimum Term	Specify the minimum tenure of the loan for the selected currency.
Maximum Term Tenure Basis	Select the maximum term tenure. The available options are: Days Month Year
Maximum Term	Specify the maximum tenure of the loan for the selected currency.
Minimum Amount	Specify the minimum amount of the loan for the selected currency.
Maximum Amount	Specify the maximum amount of the Loan for the selected Currency.
Offer Preferences	In this section you can capture the offer preferences of the loan product.
Offer Amendment	Select the toggle if offer amendment is allowed for the loan accounts.
Offer Expiry Period	Specify the offer expiry period. The available options are: Days Month Year
Offer Acceptance Method	Select the offer acceptance method. The available options are: Manual Automatic
Feature Preferences	In this section you can set the feature preferences of the loan product.
Multiple Disbursement	Select to indicate whether the multiple disbursement is allowed for the loan product.
Interest Tolerance %	Specify the maximum interest margin, the user can provide for the loan account. You can specify the maximum value as 100.00%. Tolerance Percentage = Interest Rate Interest Tolerance Percentage.
Allowed Stage Sequence	Select the rule to set the stage sequence which is allowed for repayment schedule.
Interest Rate Treatment	Select the interest rate treatment from the drop-down list. The available options are: At Offer Issue Stage At the Time of Loan Account Creation Pegged Period
Pegged Period	Select the pegged period in Days, Months and Years. Enter the value of the pegged period. OR Select up or down arrow to increase or decrease the value respectively.
Armed Forces Benefits Applicable	Select to indicate the armed forces benefits are applicable to the loan product.
Stage	Select the repayment type allowed for the loan product based on the host product mapped with the business product. The available options are: EMI IOPM POIM FPI PRS BULLET Interest Only Installments Moratorium
Max Term (<Term Unit>)	Specify the maximum term which is applicable for the loan product. The columns for setting maximum term appears for the respective term units based on the term units select in the Supported Term Units field.
Default Term <Term Unit>	Specify the default term which is applicable for the loan product. The columns for setting maximum term appears for the respective term units based on the term units select in the Supported Term Units field.
Repayment Frequency	Select the repayment frequency for the repayment stage. The available options are: Monthly Quaterly Half Yearly Yearly Not Applicable
Default Frequency	Select the default frequency for the repayment stage. The available options are: Monthly Quaterly Half Yearly Yearly Not Applicable
Action	Select the actions to perfrom on the added record. : To save the added record. : To edit the added record. To delete the added record.
Credit Decision Service Flags	Select the Credit Decision Service Flags.
Risk Based Pricing Applicable	Select the toggle if Risk based pricing is allowed for the loan accounts.
Application Based	Select the toggle if the scorecard calculation should be considered based on the application.

Parent topic: Business Product Preferences