AGENDA

Term Loan Account Opening

VAMI (Value Dated Amendment Initiation)
Rescheduling of Term Loan
Rollover of Term Loan
Manual Status change
Payment in Term Loan
Adhoc Charge Realization
Waiver of interest
Account Written-off
Recovery from Written-Off Account

Opening of Term Loan

Prerequisite info opening a term loan under FCUBS
CIF No.
Customer Liability number
Facility line (Limit)
Disbursement date (opening date)
Expiry Date
Link /Settlement account
Interest rate (regular rate and Overdue rate)

Opening of Term Loan

There are some considerations for opening a term loan
account The loan is one time disbursement or phase wise disbursement
The loan is with or without moratorium
Which day of the month/quarter will be EMI payment date, i.e
25th day of each month
EMI amount is fixed as per sanction letter or System generated
Link account should have available money if Service change /
processing fee and VAT is applicable for the account.
Where disbursement will be given, i.e GL or Customer Account
To navigate Term loan account opening screen
Lending > Operation > Account Input
Function ID # CLDACCNT

SETPS -Opening of Term Loan

1.Click New to open new screen
2.Choose product code under which account will be
opened ( EAAS, STLN, CTLN)
3.Input information in Main Tab (Customer ID, Currency,
Finance Amount, Value date, maturity date or tenor)

4.Put Payment Mode detail (where disbursement amount

will be credited and installment amount will be realized)

5.Then Click on Product Default

6.Press Edit UDE Details button to change User
Defined Element Values for changing defaulted
interest rates, other changes and VAT (If required)
7.Press Enrich if changes is made in User Defined
Element Details

SETPS -Opening of Term Loan

8. Go Preference tab for any changes in account
preference (if required)
9. Go Component tab for generating repayment
schedule as per requirement
10.
Go Charges tab for checking the charge amount
11. Go Linkage Details tab for attaching the facility line
with the account
12. Go Fields tab for filing up the required field
13. Click Save button to save the credentials of loan
account
14. Check the Event button to see the accounting
entries passed by system
15. If everything is proper and as per requirement then
Authorize the saved loan account

User Defined Element Values

3 Interest rates
INTEREST_RATE Normal Interest rate
OINT_RATE Interest on overdue Interest
PINT_RATE Interest on overdue Principal

Charges
DOC_HAND_CHG Document Handling charge
PRE_PEN_RATE- Pre-payment Change/ Early Settlement
Charge
MIN_PROC_FEE Minimum Processing Fee
PROC_FEE_RATE Processing Fee Rate
PROC_FEEVM_RATE Further disbursement fee Rate
VAT on Charges
VAT_DOC_HCHG Vat on Document Handling charge
VAT_PRE_PNL Vat on Pre-payment Change/ Early
Settlement Charge
VAT_PROC Vat on Processing Fee Rate

Schedules for Term Loan

System generated schedule may not as per requirement.

To change schedule as requirement, user has to click
Edit Schedules in MAIN_INT
Component of
Component Tab. And, press Explode Schedules
after putting proper information in the below fields for
Term Loan without moratorium

Formula AMORT_FRM_1 for Amortized Loan

First due Date First installment Due date

No of Schedules depend on loan tenor and units
Frequency 1
Units Monthly/Quarterly
Due date on the specific date on which installment
will be fallen in very months

Incase of MORA_FRM_1 there are some other

consideration during schedule creation- First due date
- end date of quarter and moratorium completion date

Schedules for Term Loan

Incase of Term Loan with Moratorium there are some
other considerations during schedule creation

Formula MORA_FRM_1 for upto Moratorium Period

First due Date First quarter end date from Loan
opening date and moratorium completion date for
unit Daily

No of Schedules depend on how many quarter

within moratorium period
Frequency 1
Units Quarterly and daily
Due date on 31 for quarterly schedule

Capitalized must be ticked ()

Rest of the schedules will be AMORT_FRM_1 as defined

in previous slide.

VAMI
Value Dated Amendment Initiation (VAMI)
Financial
Further Disbursement
Charges on further Disbursement
Interest Rate Change
Validity Extension/Reduction
EMI Re-fixed/Restructuring of Term Loan
Non Financial
Linked Account Changes
Liquidation Mode Change
User Defined Field Change
Limit line Change
Change in Status Change Mode
To navigate VAMI screen
Lending > Operation > Value Dated Amendment
Initiation
Function ID # CLDACCVM

VAMI
Steps for VAMI
1.
2.
3.
4.
5.
6.

Press Enter Query

Input account number in the desired field or click LOV to
fetch the account.
Press Execute Query to display the account info in Screen
Unlock the account to do VAMI
Put Effective Date of VAMI (Usually Current Date/System
Date)
Press Create Amendment

The above mentioned steps are mandatory and common for all
kind of VAMI. Then, depending on type of VAMI few tasks
are added as steps for respective VAMI along with above
mentioned steps.

VAMI Steps For Further Disbursement

1. Put Finance Amount (adding Current Disbursement Amount +
Already Disbursement Amount)

2. Navigate to PRINCIPAL component under Component

tab to click on Edit Schedules
3. Input total Finance Amount in Amount field of
Disbursement schedule
4. Click Explode Schedule to have the effect of disbursement
amount change
5. Change the Linked Amount upto Finance Amount under
Linkage Details
6. Click Save to accept changes
7. The amendment must need to authorize by designated
Checker
N.B. The accounting Entries for Further Disbursement VAMI can be
seen after authorization.

VAMI Steps For Maturity/Expiry Date

Change
1. Input Maturity Date in field
2. Press Button E next to Maturity Date (A message will be
shown regarding manual schedule change)

3. Navigate to MAINT_INT component under Component

tab to click on Edit Schedules
4. Do relevant changes in Schedules (details is given in Schedule
Slide)

5. Click Explode Schedule to have the effect of Maturity

Date change (Visit Schedule Details)
6. Click Save to accept changes
7. The amendment must need to authorize by designated
Checker
N.B. Maturity date change can not be possible on the day of Maturity
and after Maturity date.

VAMI Steps For Interest Rate Changes

1. Click on Edit User Defined Element details to change
interest rate.
2. Pick new effective date for interest rate by clicking on (+)
3. Press P next to new effective to populate all the
component in User Defined Element Values
4. Change interest rate manually
5. Navigate to MAINT_INT component under Component
tab to click on Edit Schedules
6. Do relevant changes in Schedules (details is given in Schedule
Slide)

7. Click Explode Schedule to have the effect of changed

interest rate (Visit Schedule Details)
8. Click Save to accept changes
9. The amendment must need to authorize by designated
Checker

VAMI Steps For Non Financial Changes

Linked Account Changes

1. Navigate to Component and Charges tab

2. Change both Debt and Credit Settlement Mode to Linked
account

Liquidation Mode Change

1. Navigate to Preference tab

2. Change Liquidation Mode to Desired (Auto, Component and
Manual)

User Defined Field Change

1. Navigate to Fields tab

2. Put/Change relevant value to Field

Limit line Change

1. Navigate to Linkage Details tab

2. Change the expected limit line

Change in Status Change Mode

1. Navigate to Preference tab

2. Change Status Change to Desired (Auto, Manual)
Click Save and authorization is common for all

Rescheduling of Loan

First time Rescheduling

To open a reschedule account in Flexcube, user has to
choose relevant product as per customer segment
and product purpose.
SL

Produ
ct
Code

Details

1.

RSTR

Retail Term Loan (RS)

2.

RSOC

Corporate - Term Loan (OtherRS)

3.

RSTC

Corporate - Term Loan (RS)

4.

RSOS

SME - Term Loan (Other-RS)

Instruction Circular No.1255 dated.10-DEC-2014

5.

RSTS

SME- Term Loan (RS)

Rescheduling of Loan

First time Rescheduling

The opening procedure of reschedule is as same as
normal term loan. Disbursement will be made in Intra
Branch transfer_Credit GL number (215950143).
The accounting will be as followsOpening Of rescheduling Loan

Customers Loan A/C

Intra Branch Credit GL

Dr.
Cr.

Closing of Related Classified Loan A/C.

Intra Branch Credit GL

Classified Loan A/C

Dr.
Cr.

For Tagging interest suspense (if any) to rescheduled account

user has to use PSUS event (details of PSUS event is described
in Doc given in iucb). This manually tagged suspense has to
be settled manually.

Rescheduling of Loan

Second and Third time Rescheduling

As the loan account is already in rescheduled product code.
User does not need to opening new account for second and
third time rescheduling.
Only Rollover will make effect of Second and Third time
rescheduling.
Some important points related to RS A/C:
Interest accrual will go to interest suspense GL
Upon realization of actual payment interest will go to
income
There will no account accounting entries for Status change
Rollover interest suspense will transfer manually

Rollover of Term Loan

Rollover:
During Rollover the unpaid interest is added to the Principal
Outstanding. So, on Rollover date principal amount increase by
settling all unpaid interest. We can extend the maturity date of
the expired loan account through rollover in FCUBS.
During rollover, user can do few things in addition to maturity /
Expiry datePayment
Further disbursement
Waiver of interest
Interest Rate change
Change in Loan preference (Liquidation mode, status change mode,
Link account, EMI, facility line change etc.)

To navigate the Manual Rollover Screen

Lending > Operation > Manual_Rollover
Function ID # CLDMNROL

Steps for Rollover

1. Press New to activate the rollover screen
2. Input loan account number in the Account field.
3. Click on Populate Outstanding to generate total
outstanding amount.
4. Click on Allocate to increase Principal amount.
5. Input the interest amount in Principal Increase Column to
settle interest amount by increasing Principal
6. Press Default to get defaulted all the features of exiting
account (after clicking default button Rollover tab will be
disable and rest of the tab will be enable)

7. Move to Main tab and Input Maturity Date of the

account
8. The below activities are same as account opening

Interest rate change

Schedule creation
Linkage details (If required)
Input Debit and Credit Settlement
components (If required)

Account

for

all

9. Save and Authorize the transaction by Maker and

Payment in Term Loan

Flexcube support automatic installment realization from Linking
settlement account. This automatic payment realization is
subject to type of Liquidation Mode set during account
creation under preference tab of account opening screen
(CLDACCNT).
Liquidation Mode :
Auto System will realize payment on due date
Manual Payment has to be realized on due date and
later
Component - If all component is AUTO system will
realize payment on due date

Which Type of liquidation mode will be selected for

an account?

Here, we will discuss about manual payment.

Manual Payment in Term Loan

Manual payments in Term Loan are of different types depending
on time of payment. The probable scenarios that a user
may encounter for Term Loan are as follows
Payment during Moratorium period
Payment on schedule due date
Payment before schedule due date (Advance
Payment)
Payment after schedule due date (Overdue Installment
Payment)
Prepayment
Navigation to payment screen
Lending > Operations > Payment Input
In addition, we may input short code as CLDPYMNT

Steps of Manual Payment

1. Click on New to open new screen for transaction.
2. Fetch desired Account Number in which payment will be
made
3. Click on Populate Due
4. Input Settlement Amount (Payment amount)
5. Check Settlement Account whether it is available with
money
6. Click Allocate to allocate the inputted Settlement Amount
7. Check whether allocation is as per desire/ banks policy
8. Save the transaction
9. Authorize accordingly
Details of payment procedure is described in Payment in
Term Loan document (it is available in iucb)

Manual Payment
Advance Payment
Payment of installment before due date that has no interest
benefit from customer perspective. Customer does not need to
pay the installment to which he made payment on advance.
Advance payment must be complete or full installment(s).
For example, the loan account schedule date is 30/03/2016 and we
are going to make payment on 22/03/2016.

Prepayment
Payment in principal without considering due date has interest
benefit from customer perspective. In this case, customer has
to pay regular installment on installment due date. Prepayment
is not schedule installment payment.
For example, the identical account has no scheduled installment
overdue as on 23/03/2015. Now, the customer wants to pay some
amount and he will serve the regular installment which will be due on
31/03/2015.
N.B. Schedule interest and principal combination will change

Manual Payment
Advance Payment
Payment of installment before due date that has no interest
benefit from customer perspective. Customer does not need to
pay the installment to which he made payment on advance.
Advance payment must be complete or full installment(s).
For example, the loan account schedule date is 30/03/2016 and we
are going to make payment on 22/03/2016.

Prepayment
Payment in principal without considering due date has interest
benefit from customer perspective. In this case, customer has
to pay regular installment on installment due date. Prepayment
is not schedule installment payment.
For example, the identical account has no scheduled installment
overdue as on 23/03/2015. Now, the customer wants to pay some
amount and he will serve the regular installment which will be due on
31/03/2015.
N.B. Schedule interest and principal combination will change

Realization of Early Settlement Charge

Status change
In case of Term Loan, as per management decision and product
setup, status change will be manual considering overdue
installment/days.
Navigation to Manual Status Change screen
Lending > Operations > Status Change
In addition, we may input short code as CLDMSTCH
For status NORM and SMA
Interest accrual will go to Income account or GL
For Status SS and DF
All unpaid interest income will go to Suspense account or GL
including current month
For Status BL
System will complete interest accrual upto day before BL date
and will go to suspense account or GL

Status change
In case of Demand Loan, as per management decision and
product setup, status change will be Automatic considering
expiry date.
If user want to change account status manually, a status
change mode VAMI has to be done to make Status Change
Mode as MANUAL. Then user will go for manual status
change in DL.

Navigation to Manual Status Change screen

Lending > Operations > Status Change
In addition, we may input short code as CLDMSTCH
For status NORM and SMA
Interest accrual will go to Income account or GL except
capitalized interest
For Status SS and DF
All unpaid interest income will go to Suspense account or GL
including current month
For Status BL
System will complete interest accrual upto day before BL date

Adhoc Charges Realization

This is required to collect any kind of charge for a loan account
from linked settlement account. To collect this charge user has
to be confirmed of available balance in corresponding
Settlement account of loan account.
Navigation to Adhoc Charges screen
Lending > Operations > Adhoc Charges Input
In addition, we may input short code as CLDADCHG
The following information has to be inputted to realize the
Change
Account Number For the account charge will be
collected
Component Name ADHOC_CHG
Credit Account The GL collect to which charge will be
credited
Charge Type - ADCH
Charge Incurred Date Charge collection date

Waiver of Interest (Lending)

During interest waiver there different kind of

interests for a loan account Interest waiver from income
Interest waiver from suspense
Interest waiver from suspense (interest
suspense upload from PC Bank)

Interest waiver from income which already

paid
Interest waiver from unapplied
All kind of interest waiver is inputted in manual
Payment Input.

Account Written-off (lending)

Writing off a loan account in flexcube depends on
Migrated with interest suspense (Interest suspense upload
from Pcbank)
Interest suspense is generated in flexcube.

For the account interest suspense uploaded from PCbank had

capitalized interest, i.e. accounts principal outstanding has
reflection of interest suspense.
Under the circumstance, interest suspense shall be
transferred to income GL and loan principal outstanding shall
be adjusted from income GL. Then, rest asset amount is
written-off using Partial write off screen.
Navigation to Write off screen
Lending > Operations > Partial Write Of
In addition, we may input short code as CLDPWOFF

Account Written-off
Important information for written-off:
Asset GL for the loan account become Zero
Loan account will be found Active in System as normal
loan. But, it will not show in loan listing.
Report is available for written off loan
System calculates interest of written-off loan as BL loan
After written-off, System functions as Memorandum
Ledger

Recovery from Written-Off Account

(Lending)

For written-off loan payment has to be made using

payment input screen
During payment, system will show upto date interest
for that loan account. User may make payment in
principal component.
Branch should inform FAD during payment within the
loan.

Q&A