Maintenances and Operations

General Maintenance 15

Introduction
Before you begin using the Consumer Lending module, you must maintain the
following information in the system:

Bank Parameters

These are parameters that you need to specify at the bank level. These will
include the following:

 Interest calculation parameters

 Amount blocks on inactive accounts
 Splitting of accounting entries for the offset leg
 Site specific maintenances

Branch Parameters

These are parameters that you need to specify at the branch level. These will
determine the following:

 Batch processing during holidays

 Netting of accounting entries for accrual, liquidation and status change
 Default Settlement Accounts
 Format/Mask for generation of Account numbers etc.
 The structure of the schedule
 Schedule gap treatment

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In addition, you also have to maintain the following:

UDE (User Data Elements) Rules

UDEs are used to build formulae to calculate the amount of interest applicable.
These include entities like Interest Rate, Amount Slab etc. that will hold values
you provide. The UDEs themselves are defined at the product level but you can
use these UDEs to build rules with different conditions based on which the UDE
value should be arrived at.

You can maintain the UDE values at Product and Account level. You can also
maintain Fixed amount UDEs in other currencies.

Repayment holiday periods

For a calendar year, you can define holiday periods for customers during which
they can avail a repayment holidays.

System Data Elements (SDEs)

Information that is constantly updated by the system, for instance, the balance in
an account, number of transactions processed etc. is referred to as SDEs. This
information is readily available for computation of penalties, Interest or charges.
You need to identify the SDEs applicable for this module.

Floating Rate maintenance

You can maintain floating rates for a Rate Code, Currency, Amount Slab and
Effective Date combination.

User Defined Policies

These are validation and operations that are performed during the life cycle of a
loan.

Promotions

Promotions are special offers whereby you can offer special incentives/
concessions to customers. You can link loans to one or more promotions.

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The above maintenances are discussed in detail in this chapter.

Maintaining Bank Parameters

You can maintain the bank parameters in the ‘Retail Lending – Bank Parameters’
screen. To invoke this screen from the Application Browser, select Bank
Parameters, choose Retail Lending under it.

Here you can capture the following details:

Bank Code

Specify the code that represents your bank.

Limiting the number of records fetched

This specifies the number of rows displayed when query is done in Online
screens.

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Include To date for Interest Calc

If you check this option, then accrual entries will be passed from the value date +
1 till the maturity date. However, if this box is not checked, then accrual entries
will be passed from the value date till the maturity date - 1.

Amount Blocking for inactive account

Indicate whether an amount block needs to be imposed on an inactive account or

not.

Split Offset Leg

Check this box if you wish to have split accounting entries for the offset leg of a
transaction. For example, if a certain transaction debits a particular GL and
credits two different GLs (as in off balance sheet entries), the system will pass
two debit entries for the first GL to be in sync with the credit entries to the other
GLs. If this option is not checked the accounting entries will be as under:

Dr/Cr Account Amount

Dr 00000001 50

Cr 00000011 20

Cr 00000022 30

If this option is checked the accounting entries will be as under:

Dr/Cr Account Amount

Dr 00000001 20

Cr 00000011 20

Dr 00000001 30

Cr 00000022 30

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Achieve Processed Records from events diary

The parameter Reference Date, Frequency, Unit will be used to archive the
processed records in Event Diary.

The archival will be done in EOD by batch function. If this parameter is not set
then no achieve will be done.

Maintaining Branch Parameters

You can maintain the branch parameters in the ‘Consumer Lending – Branch
Parameters’ screen. To invoke this screen from the Application Browser, select
Branch Parameters, choose Retail Lending and then the Detailed option under
it.

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Branch parameters include the following:

Branch Code

You have to indicate the code of the branch for which the parameters have to be
maintained. The codes of the various branches of your bank are available in the
option list provided.

When you select the code, the branch name is also displayed alongside.

Process Till Next Working Day – 1

This specification will determine the day on which automatic events such accrual,
liquidation etc. falling due on a holiday, should be processed. If you select this
option, events scheduled for a holiday will be processed on the last working day
before the holiday.

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Example

Assume that the current system date is 15th May ’05. Further, 16th and 17th are
holidays. If you select ‘Process Till Next Working Day – 1’, when you execute the
batch program during EOD of 15th May, the events due on 16th and 17th will also be
processed.

If you do not select this option, processing will be done upto the system date i.e.
the current date. The automatic events due on a holiday will be processed as part
of the batch program run at BOD on the next working day after the holiday.

Consider the example discussed above, if you do not check this option, the events
due on 16th and 17th will be processed as part of BOD operations on 18th May ’05,
which the next working day after the holidays.

Netting

Here, you need to indicate the netting preference for posting entries during
accrual, liquidation and status change.

If you opt to net, the system will post a single consolidated entry for a GL and
Currency combination. If you do not select this option, entries are posted
individually for each account.

The GL netting status change option can also be used to indicate installment level
status change.

The Netting of Notices across Accounts can be used to indicate that for or all
accounts for which the payments falls due on a particular date, the requests for
invoice generation should be consolidated.

The loan accounts for which the reminder or demand note should be sent is
tracked based on the status of the account. The SDE ‘Next Schedule Date’ is set
up to arrive at how many no. of days in advance the payment notice should be
generated. Based on the status of the loan account the corresponding payment
invoice format is set up.

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The Auto allocate part payment option can be used if you want to do a partial
payment through auto allocation. For accounts which are marked for manual
allocation of partial amount the payment can be done in bulk using the
‘Consumer Lending – Bulk Payments’ screen.

For more details on Bulk payments refer section ‘Bulk Payments’ in the ‘Operations’
chapter of Retail lending module.
Settlement

The settlement accounts for processing lending transactions have to be specified

here. You have to specify the Bridge GL/Account to be used for the settlement of
the debit and credit legs of transactions that would be processed at your branch.
You can select the accounts from the option lists provided for the same.

Intraday Jobs

Typically, accruals are processed either at BOD or EOD. However, you have the
option to facilitate accruals any time during the day i.e. during the normal
transaction input itself. You have to check the ‘Intraday Accrual’ option to avail
this feature. If you opt for intraday accrual, you also have to specify the
following:

 Intraday Job Interval: This is the interval (in hrs) at which the Intraday Job
should be executed during the day.
 Num Parallel Jobs: This indicates the actual number of jobs to be processed
at the same time when the Intraday Job is executed. For example, if the
number of parallel jobs is 5, the system will group the accounts into 5
different jobs to be processed simultaneously by the Intraday Job. The
system automatically groups the accounts based on the number of parallel
jobs maintained.

Account Auto Generated

You can select this option for automatic generation of account numbers. The
system generates the account numbers automatically when you create customer
accounts through the ‘Account Details’ screen. If this option is not checked, you
have to capture the account number yourself.

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For details on creating an account, refer the ‘Account Creation’ chapter of this User
Manual.
Accounting Mask Required and Account Mask

To maintain uniformity in the account numbers generated/captured across a

branch, you can specify a format/mask for account numbers. If you specify that
account numbers should conform to a specific format, you have to specify the
mask in the ‘Account Mask’ field.

Example

You may want the account numbers of your branch to be a combination of:

 Branch Code (3 Characters)

 Product (4 Characters)
 Currency (3 Character currency code)
 5 digit running sequence number

The account mask in this case would be: @ (BRN)@(PROD)@(CCY)@(SEQ:5)

An example of an account number conforming to the above mask would be

DOC3ROLUSD60021.

If you opt for auto generation of account numbers but do not specify a mask, the
generated number will, by default, conform to the following format:

 3 character Branch Code

 4 character Product Code
 Date in Julian format (YYDDD)
 4 digit running sequence number

An example of an account conforming to the above format is

‘DOCVSIM040960021’ where:

 ‘DOC’ is the Branch Code

 ‘VSIM’ is the Product Code

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 ‘04096’ is the date equivalent to 5th April 2004 (04 – Year and 096 is the
number of days that have elapsed in the year).
 ‘0021’ is the running sequence number.

Also, if you maintain an account mask but do not opt to auto generate the
account numbers, then, during account capture you have to conform to the
account mask maintained for the branch. If the account is not as per the mask, the
following error message is displayed:

Account number entered is not conforming to the account mask.

IRR Processing

Check this option to trigger the YACR (Yield Accrual) event for the branch batch.

Accrual Entries on Holidays

This option will determine whether the accrual entries due on the holidays
should be passed as of the holiday itself or as on the working day before the
holiday(s)/after the holiday(s) depending on the ‘Process Till Next Working Day
-1’ option.

Example

Assume that the current system date is 15th May ’05. Further, 16th and 17th are
holidays. If you do not select ‘Process Till Next Working Day – 1’, the EOD process
for 15th May will accrue only for that day. Accruals due on 16th and 17th will be done
on the next working day, 18th May ’05. The EOD process of 18th May will accrue for all
the three days i.e. 16th, 17th and 18th. If you select ‘Process Till Next Working Day – 1’,
then the EOD process of 15th May will take care of accruals due on the 16th and 17th as
well. If you do not opt for ‘Accrual Entries on Holidays’, the booking date of the
entries will be the working day (15th or 18th in this example) on which the accrual is
processed. The accrual entries are passed with the value date as of the working day.

If the ‘Accrual Entries on Holidays’ option is selected, the processing will continue to
be on the working day before or after the holidays, depending on your preference.
However, the value date of the entries will be as of the corresponding holiday date
i.e. 16th and 17th May respectively.

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Schedule Structure

This option is used to indicate if the schedule definitions should honor the end
dates or honor the frequencies when the two contradict. The options are:

 Frequency Based
 Non-Frequency Based (the end dates contradict each other)
Example

For a product, you can define payment schedules based on the value date of the loan
and/or based on the calendar date. Assume that you have a housing loan product
‘HOME’ with the following payment schedule details:

 Unit – Monthly
 Frequency – 1
 Schedule Basis – Value Date
 Tenor – 12 months

Case 1: Schedule structure is frequency based

A housing loan is initiated on 4th April 2004. As per the above details, the following
schedule dates are defaulted:

 First Due Date: 4th May 2004 (one month after the disbursement date)
 End Date: 4th Mar 2005 (in between schedules being 4th June, 4th July and so
on for 11 months)
 The last schedule is always a ‘Bullet’ schedule.

Note that the schedule dates are driven by the value date of the loan. At the account
level, you can, however, change the defaulted schedules. But the end dates should
not contradict for the schedules.

For instance, you cannot define schedules with the following details:

First Due Date No of Schedules Frequency End Date

04-MAY-2004 5 Monthly 04-SEPT-2004

01-OCT-2004 5 Monthly 01-FEB-2005

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04-APR-2005 1 Bullet 04-APR-2005

Note that for the first and second schedules, the end dates are contradicting (4th Sep
and 1st Feb respectively). This is not allowed if the schedule structure is ‘Frequency
Based’. The following error message is displayed:

Input for component is not as per schedule frequency.

Case 2: Schedule structure is non-frequency based

If the schedule structure is non-frequency based, you can define schedules with
contradicting end dates (refer the schedule structure given in Case 1 above).

First Payment Schedule Gap Treatment

Here, you have to specify the manner in which you would like to treat the
period/gap between the loan disbursement date and the first payment. The
options are:

 Treat as Payment
 Treat as Moratorium
Example

Assume that you make a disbursement on 1st January and the first payment is due on
1st March. This means that there is a gap of two months between the disbursement
and the first payment schedule. You can treat this gap either as a ‘Payment’ schedule
or a ‘Moratorium’ schedule. If you opt to treat it as a ‘Payment’ schedule, then,
during product creation, you should define the payment schedule with the ‘Schedule
Flag’ being ‘Normal’. You should also specify a separate formula for this schedule.
This is also done at the product level.

Similarly, if the gap is treated as a ‘Moratorium’, you should define a schedule with
type ‘Moratorium’ and also define a moratorium formula for the schedule.

Intermediate Schedule Gap Treatment

Here, you have to specify the manner in which the system should handle gaps
between two schedules. The available options are:

 Create New Schedule

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 Advance current schedule

 Extend previous schedule
Example

Assume that the following are the two payment schedules for a loan:

 1st May to 25th May

 5th June to 25th June

Therefore, the gap between the two schedules is 10 i.e. from 26th May to 4th June. To
handle this gap, you can instruct the system to do any one of the following:

 Create a new schedule in which case a new schedule is defined for the gap
period i.e. 10 days.
 Advance the current schedule, wherein the second schedule will start from 26th
May instead of 5th June and go upto 25th June.
 Extend the previous schedule in which case the first schedule goes upto the 4th
of June instead of 25th May.

After setting up the branch parameters, you have to save the details. Click on
to save the details in the system. However, the parameters take effect only after
your supervisor authorizes the same.

Refer the Procedures User Manual for details on common operations like authorization,
deletion, closure etc.

Defining UDE Rules

User Defined Elements (UDEs) refer to entities like Interest Rates, Amount/Tier
Slabs whose value you can specify and at the same time maintain different values
with different effective dates. For instance, you can indicate that interest should
be calculated at five percent on a certain date and specify a higher rate effective at
a later date.

The UDEs, per say, are defined at the product level and the actual values are
provided for a combination of Product, Currency, UDE Rule, and Effective Date
in the ‘UDE Values’ screen. This will be defaulted at the account level and you
can override the same with account specific values.

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You can define UDE Rules based on which the UDE Values will be picked up at
the account level. UDE Rules are conditional expressions built using the SDEs
like Loan Amount, Tenor, Rate, Customer Category etc. These rules can be
created independently and later attached at the time of maintaining UDE Values.
You can associate multiple rules and specify UDE values for each rule. You can
maintain the rules in the ‘UDE Rules’ screen. To invoke this screen, select Retail
Lending in the Application Browser, choose UDE Rule and then the Detailed
option under it.

The following information should be captured to create a UDE Rule:

Rule Code

You have to specify a unique code consisting of a maximum of four

alphanumeric characters, to identify the rule in FLEXCUBE. This is mandatory to
save the record.

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Condition

You can build multiple conditions for a rule. To do this, click on

in the screen above. The following screen is displayed:

You can create conditions using the following:

 Fields: The SDEs that are factory shipped or maintained in the ‘System Data
Elements’ screen are available in this list.
 Operators: This list includes the mathematical operators:
 Equal To
 Greater Than
 Greater Than or Equal To
 Less Than
 Less Than or Equal To
 Like
 Not Like

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 Not Equal To
 Logical Operators:

 And: Use
 Or: Use
 Value: The value of the SDE selected to define the condition should be
entered here. The value may be numeric or alphanumeric, as required for
the condition.

After building the condition, click to accept the same. To remove a

condition, click in the screen.

After you build the condition(s), click in the screen. You will return to
the ‘UDE Rules’ screen. The condition defined is displayed in this screen.

Example

Assume that you want to charge interest at 12% for home loans (Product Code -
HOME) where the loan amount is greater than or equal to 100, 000 and an interest
rate of 10% on loans less than 100,000. You can build these conditions in the form of
UDE Rules.

Rule ID Condition

UDE1 AMOUNT_FINANCED >=100000

UDE2 AMOUNT_FINANCED<100000

At the time of assigning values for the UDE ‘INTEREST’ (assuming that this is the
UDE defined for the product in the ‘UDE Values’ screen(discussed below), you can
associate the above rules and for a product, currency, rule and effective date
combination, you can specify the value as 12 and 10 respectively. Depending on the
condition that the loan satisfies (whether >= 100000 OR less than 100000), the
appropriate rate is picked up for interest calculation.

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Refer the section titled ‘Specifying product Main details’ in the ‘Defining Product
Categories and Products’ chapter of this User Manual for details on defining UDEs.

Providing UDE Values

The actual values for the UDEs defined during product creation (in the ‘Main’ tab
of the ‘Consumer Lending Product’ screen) is maintained in the ‘UDE Values’
screen. To do this, select Retail Lending in the Application Browser, choose UDE
Value and then the Detailed option under it.

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32 FLEXCUBE Corporate

In this screen, you can maintain values for a ‘Product Code+

Description+Currency Code + UDE Rules + UDE Dates+UDE Values’
combination. The following details have to be captured here.

Product Code

You have to select the product for which the UDE values have to be maintained.
The products offered at your bank are available for selection in the option list
provided. Click on to select a product code from the list.

Description

After selecting the product the system will automatically generate a description
for the product.

Currency Code

For the product selected, specify the relevant currency. This becomes the UDE
currency and the values you capture for the UDE is expressed in this currency.
The option list will include the currencies maintained in the ‘Currency Definition’
screen. You can select a relevant code from this list.

For details on ‘Currency Definition’ screen, refer the ‘Currency Maintenance’ chapter of
the Core Services User Manual.
UDE Rules

Here, you have to associate the relevant UDE Rule(s). The rules maintained in the
‘UDE Rules’ screen are available in the option list. For each associated rule, you
can specify UDE values with different effective dates and depending on the rule
that the loan satisfies, the corresponding UDE values become applicable to the
loan and same are picked for Interest, Charge, Tax, Commission and Fee
computation.

The UDE Rule is mandatory to save the record. The system will
automatically link the default rule if you do not associate a rule.

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Effective Date

You have to specify the effective dates for the UDE values. This is the date on
which the UDE value becomes applicable in the system. The date should be in
MM-DD-YYYY format. For a rule, you can maintain UDE values with different
effective dates.

UDE ID

The UDEs defined for the selected product is automatically displayed here.

UDE Value

For each UDE displayed for the selected product, enter the UDE value. As
mentioned, you can maintain values with different effective dates.

Rate Code

If you want the UDE to have a floating interest rate, select the applicable rate
code from the option list. Depending on the rate code selected, the rates are
picked up from the ‘Floating Rate Code Definition’ screen. In this case, the value
captured for the UDE becomes the spread against the rate code.

For instance, assume that the rate code is ‘MIBOR’ and the UDE value is 2
(positive spread). If the rate picked up as per the rate code (taking into
consideration the effective date, amount slab and tenor) is 5%, then the actual
interest applicable would be 7% (5 + 2). Similarly, if it were a negative spread, the
interest would be 3% (5 – 2).

For details on maintaining floating rate codes, refer the section titled ‘Maintaining
Floating Interest Rates’ in this chapter.
UDE Currency

The Currency of the UDE for UDE of Amount type will be captured

Code Usage

This is applicable only if you associate a ‘Rate Code’ with the UDE. It indicates
the frequency at which you want to refresh the floating rates. The options are:

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 Automatic: This implies that the rates will be automatically refreshed every
time a rate change occurs. Therefore, rates are reapplied to the loans as and
when there is a rate change.
 Periodic: This means that the rates will be refreshed based on the Rate
Revision Schedule maintained at the component level (in the ‘Components’
tab of the ‘Consumer Lending Product’ screen).

It is mandatory to specify the Rate Code usage if the rate code is maintained.

Cascade

You can change the UDE values even after creating accounts under the product.
The cascade feature is used to determine the manner in which the change should
be handled. If you choose to cascade (select ‘YES’), the change becomes
applicable to all the existing accounts under the product. However, if you do not
cascade the changes, the new UDE values become applicable only to accounts
created subsequent to the change.

Maintaining Fixed Amount UDEs in other Currency

To maintain UDEs in a currency different from the loan currency, you have to
maintain the values separately for each currency. At the time of loan creation, the
values defined for the UDE Currency is picked up and is displayed (in the ‘Ude
Value’ field of the ‘Account Details’ screen) after conversion into the loan
currency equivalent.

Example

Assume that at the product level (Product Code: HOME), you define three UDEs (of
type ‘Amount’), each in a different currency.

 UDE1 in CLP (loan currency)

 UDE2 in USD
 UDE3 in GBP

At the time of capturing the values for these UDEs in the ‘UDE Values’ screen, you
have to maintain UDE values for the following three combinations:

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1. HOME + CLP + Default UDE Rule + Effective Date + UDE1

2. HOME + USD + Default UDE Rule + Effective Date + UDE2
3. HOME + GBP + Default UDE Rule + Effective Date + UDE3

At the account level, the value corresponding to the UDE currency (as specified at the
product level) is picked up. For UDE1, the value corresponding to the first
combination is picked up, likewise for UDE2 and UDE3 the values corresponding to
the 2nd and 3rd combinations resp. are picked up.

The values, however, are displayed after conversion into the loan currency
equivalent.

Applying the UDE Cascade Function

You also have the feature to change the value of a UDE for all the existing
accounts under a product. However, the change will be applicable only to the
existing accounts. UDE values for new accounts created under the product will
be picked as per your specifications in the ‘UDE Values’ screen.

You can define new UDE values for existing accounts in the ‘UDE Cascade’
screen. Click on Retail Lending in the Application Browser, choose UDE
Cascade and then the Detailed option under it to invoke the screen.

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The code of the login branch is displayed here. The following information is
captured in this screen:

Reference

After saving the UDE cascade function, Reference will be generated by system
itself.

Branch code

Input the branch code in which the relevant data Is maintained.

CCY Code

Select a currency maintained for the product from the option list provided. The
UDE value is applied in the currency selected here.

Product Code

Select a product for which you have to change the UDE value. The change
becomes applicable to all the existing accounts under the product.

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UDE Effective Date

The date on which the new UDE value is brought into effect is captured here. The
date format should be ‘MM-DD-YYYY’.

After you specify the effective date, the system automatically generates a unique
‘Reference’ Number.

UDE Id

The option list will display the UDEs defined for the selected product. Select the
UDE that requires a change in value. When you select the UDE, the ‘Old Ude
Value’ is also displayed in the next field.

New UDE Value

Provide the new value for the selected UDE.

Viewing details of the Effected Accounts

You can view the details of the existing accounts affected due to the UDE value

change. To do this, click in the ‘UDE Cascade’ screen.

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The following account details are displayed in the ‘Effected Accounts’ screen:

 Branch: The branch of the account which is affected by the change in the
UDE values.
 Account: The Account number of the account which is affected by the
change in the UDE values.
 Product: The product to which the account is linked.
 UDE Value: The old value of the UDE.
 New Value: The new UDE value.

Maintaining Holiday Periods

You can identify certain periods in the calendar as holiday periods when
customers would have other expenses and would like to avail a repayment
holiday. This would typically be during Christmas/New Year or for anniversary
celebrations. Although, Interest computation continues for this period,
repayments are not scheduled.

You can define repayment holiday periods in the ‘Holiday Period’ screen. To
invoke this screen, select Retail Lending in the Application Browser, choose
Holiday Period and then select the Detailed option.

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The following information is captured to define a holiday period:

Period Code

You have to capture a unique code to identify the period in the system. The code
can comprise of 30 alphanumeric characters.

Date From and Date To

For the period code specified, capture the holiday period i.e. the start date and
end date for the holidays. The date format should be ‘MM-DD-YYYY’. It is
mandatory to specify the date range to save the holiday period.

Anniversary Period

This option is used to define an anniversary period. If you check this option, the
holidays will be repeated every year for the given range of dates. By default, the
system checks this option.

Maintaining System Data Elements

The balance in the account for which the interest has to be calculated depends on
the activities that take place in the customer account over a period of time. This
information is constantly updated in the system and is readily available for
computation of interest or charges. Data elements of this sort are called ‘System
Data Elements’ (SDEs) because the values for the SDEs are necessarily picked up
by the system while applying interest. You cannot input the values for these
elements.

You can capture the various SDEs in the ‘System Data Elements’ screen. To
invoke this screen, choose Retail Lending in the Application Browser, select
System Data Elements and then the Detailed option under it.

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You have to maintain the following to define a SDE:

Element ID

Capture an id to uniquely identify the SDE in the system. You can devise an Id
comprising a maximum of 30 alphanumeric characters.

Function Name

Here, you have to associate the Oracle function which would calculate the SDE
value internally. The values available in the option list are factory shipped. The
system picks up the value computed by the function for use in interest
calculation.

Data Type

This indicates the nature of the data the SDE represents. The options are:

 Character
 Number
 Date

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Language Code and Language Text

Select a language for the SDE being defined. You can select a code from the
option list provided. The system automatically displays the corresponding text in
the language selected for the SDE.

Language Description

Here, you have to provide the description of the SDE being defined, in the
language selected. The description should not exceed 30 alphanumeric
characters.

System Data elements can be balances like PRINCIPAL_EXPECTED,

PRINCIPAL_OVERDUE etc. Some FLEXCUBE entities required for formula
generation/rule set up will be factory shipped.

The list of standard SDEs available for use are given below:

Name Description

TENOR Duration for which the loan is applied for in days.

CUSTOMER_CATEGORY Category of the customer of the loan which is maintained

at the customer information file level.

BRANCH_CODE Code of the branch where the loan account is opened.

ACCOUNT_CCY Loan account's currency.

LOAN_STATUS Status of the loan account.

CUSTOMER_ID Primary customer's id for a loan account.

NO_OF_RPMNT_SCHS Number of repayment schedules excluding the

moratorium ones.

INCREASED_PRINCIPAL Increase in the principal.

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Name Description

DAYS Days in a month.

YEAR Days in a year.

RISK_CLASSIFICATION Risk classification at line level which can be used at status

change.

PREPAID_AMOUNT Amount that has been prepaid.

MORA_OUTSTANDING Total moratorium outstanding amount.

TOTAL_MORA_AMOUNT Total moratorium amount.

INDEX_CCY Index currency.

NEXT_WORKDAY Next working day of the branch.

LAST_WORK_DAY Last working day of the branch.

TODAY Today's branch date.

TOTAL_PRINCIPAL Amount for which the loan is applied for.

AMOUNT_FINANCED Amount for which the loan is applied for.

PRINCIPAL Amount disbursed.

INT_SUSPENSION_DATE Interest suspension date based on risk classification. If

classification is C, then the suspension date is one year
from today's date. If classification is D, then the
suspension is immediate.

COMPOUND_VALUE Amount compounded within a schedule and is used

internally.

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Name Description

RESIDUAL_DAYS Tenor of the loan.

WORST_SCH Worst Instalment Status.

APPLICATION_DATE Application date in loan origination.

APPLICATION_SCORE Application score in loan origination.

APPLICATION_TENOR Application tenor in loan origination.

APPLICATION_PRINCIPAL Application principal amount in loan origination.

_OVR_DAYS <Component> overdue days.

_EXPECTED <Component> expected amount.

_OUTSTAND <Component> outstanding amount.

_CCY <Component> currency.

_OVERDUE <Component> overdue amount.

_INS_OVR_DAYS <Component> number of days between the schedule due

date and the maturity date.

_FN_NO_REPAY_SCH <Component> number of schedules for a component if

periodic.

_NET_PRINCIPAL <Component> amount financed.

_SCHODUE <Component> schedule amount due less amount settled.

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Maintaining Floating Interest Rates

You can apply interest either as ‘Fixed’ rate or as ‘Floating’ rate. A Floating Rate
corresponds to the market rates for the day. These rates are maintained and
updated daily (or whenever they change,) in the ‘Floating Rate Code Definition’
screen.

To invoke this screen, select Interest Rates, choose Money Market/L&D Tenor
Rates and then select the Detailed option.

The floating interest rates are defined through this screen. A Rate Code identifies
a set of rates defined for a combination of Currency, Amount Slab (optional) and
Effective Date. Also, for each such combination, you can maintain rates that can
differ by each tenor.

The following details have to be captured here:

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General Maintenance 45

Rate Code and Description

You can maintain new rate codes and also provide values for existing ones (like
MIBOR, LIBOR etc). For a new code, you need to capture a unique id. The id can
include a maximum 10 alphanumeric characters.

Lowest Rate Indicator

The lowest lending rate will be derived from a few rate codes like LIBOR, SIBOR,
PLR, etc. If you check this, the rate codes will be considered while deriving
lowest lending rate value.

Currency

You have to associate each Rate Code with a currency. You can define rates for
the same Rate Code in different currencies. Select a currency from the option list
provided.

Effective Date

Each rate that you define for a Rate Code and Currency combination should have
an Effective Date associated with it. This is the date on which the rate comes into
effect. Once a rate comes into effect, it will be applicable till a rate with another
Effective Date is given for the same Rate Code and Currency combination.

Example

Rate Code - TERMDEP45

Currency - U S Dollar

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46 FLEXCUBE Corporate

Effective Date Interest Rate

01 January 2005 12.5%

14 January 2005 12.0%

31 January 2005 13.0%

These rates will be applicable as follows:

Period Interest Rate

1st January to 13 January 2005 12.5%

14th January to 30 January 2005 12.0%

31st January to one day before the next date 13.0%

The rates will be applied to a contract depending on whether it has been

defined with ‘Automatic’ Rate Code Usage or ‘Periodic’ Rate Code Usage. You
can specify this in the ‘UDE Values’ screen.

Amount Slab

For a specific Rate Code and Currency combination, you can define an amount
slab. However, this is not mandatory. A rate that has been defined for an
Effective Date - Amount Slab combination will be applicable to an amount less
than or equal to the specified amount.

Example

Let us extend the example we discussed for Rates and Effective Dates to include
amount limits.

Amount (USD) Effective Date Interest Rate

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10,000 01 January ‘05 12.5%

50,000 01 January ‘05 13.0%

999.9 million 01 January ‘05 14.0%

If the rates have to be applied on 1st Jan ‘05, they will be picked up as follows:

 For a loan with an amount less than or equal to USD10, 000 the rate will be
12.5%.
 For a loan with an amount greater than USD 10,000 and less than or equal to
50,000 the rate will be 13%.
 For a loan with an amount greater than USD 50,000 and less than or equal to
USD 999.9 million, the rate applied will be 14%.

A huge amount (999.9 million) has been given as the last amount limit. This
denotes that after 50,000 there is no upper limit in the slab.

Borrow/Lend Indicator

For every Amount Slab - Effective Date combination, you should define the rate
to be applied as a borrow rate, a lend rate or a mid rate. Borrow rates are applied
for loans taken by the bank and lend rates applied on loans disbursed.

Tenor and Interest Rates

The rates that will be applied for a given combination of Amount Slab – Effective
date – Lend/Borrow Indicator can be tenor based. In this screen, you can also
define interest rates for different tenors.

For instance, for an amount slab you can maintain rates for the Rate Code LIBOR
for tenors 1 - 30 Days, 30 – 90 Days and so on. If you do not maintain tenor wise
interest rates, you have to maintain the tenor as ‘0’ and then specify the rate. This
is mandatory to save the details.

Click to move between the amount slab and the tenor structures. Click on
to define the rate details for another currency.

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Maintaining User Defined Policies

User defined Policies are special validations and operations to be performed
before or after a life cycle event of a loan. You can maintain policies in the ‘User
Policy’ screen.

To invoke this screen, select Retail Lending, choose User Policy and then select
the Detailed option.

Specify the following details to maintain a policy:

Policy Code and Policy Description

A policy code identifies a policy uniquely in the system. The code is used to link
the policy to a product/account. You can devise a code consisting of a maximum
of 20-alphanumeic characters.

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General Maintenance 49

Also, for the code captured, provide a brief description in not more than 35
alphanumeric characters. The description is used for information purposes only.

Policy Category

Select the category to which the policy should belong. This implies if the Policy is
to be linked to an Application (Origination and API or Product setup). The two
options are:

 Origination
 Servicing

Specifying Policy Details

Expression Line

You can maintain multiple expressions for a policy and each expression is
identified by a unique serial number. The serial number can consist of a
maximum 6 digits.

Policy Expression

Here, you have to specify the expression for the policy which when satisfied by
the loan, will trigger the corresponding action. You can maintain multiple
expressions and action codes under a policy. Depending on the expression that is
evaluated successfully, appropriate ‘Action Id’ is triggered. However, an
expression is not mandatory to define a policy.

Action Id

You have to select the action that is to be triggered when the corresponding
expression becomes valid for the loan. This refers to the wrapper name that is
mapped to the actual PL/SQL code that executes the policy. Select the action id
from the option list provided. The values available in the list are factory shipped.

The policies defined through ‘User Policy’ screen become available for
association at the ‘Product Category’ level.

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For more details, refer the section titled ‘Maintaining Product Categories’ in the
‘Defining Product Categories and Products’ chapter of this User Manual.

Maintaining Standard Policies

You can also categorize the policies defined through the ‘User Policy’ screen as
‘Standard Policies’ in the ‘Policy Maintenance’ screen.

To invoke this screen, select Bank Parameters in the Application Browser, click
on Standard Policies and then choose the Detailed option under it.

To maintain a standard policy, you have to specify the following in the screen:

Module

A standard policy is defined for a Module and Event combination. You have to
select the module for which the policy should be applied. The option list will
display the list of valid FLEXCUBE modules.

Event Code

The events defined for the selected Module are displayed in the option list
provided. You may select an event from this list.

Policy Code

The policies maintained in the ‘User Policy’ screen are available in the option list
provided. Select the appropriate policy for the selected Module and Event
combination.

Retail Lending