T3IBSAL - InclusiveBankingSuite Lending Operations
T3IBSAL - InclusiveBankingSuite Lending Operations
Lending Operations
T3IBSAL
Agenda
02 Loan Repayment
03 Loan Maintenance
Capture
New Loan
Close Disburse
Loan Loan
Customer accounts of
this category are
made available for
selection. The first
account is defaulted
on the field
For the system to disburse group loans at the same time for all members, the user
must follow these steps:
1. Open Single Group View
2. Click on Bulk Operations
3. Under Shortcuts (left hand side) click on Group disburse
4. On Group Disburse screen, click on New Group Disburse (right hand side).
Note that all relevant values are defaulted.
5. Set Disburse field (left column) to Yes for all members whose loans must be
disbursed
6. Commit the record. System generates all entries for all loans and sets loan
status to Current in the SCV Loans tab.
For further details on how to disburse and collect loans, refer to the training module
T3IBSAL.
Group Disbursements
The group Disbursement screen is automatically defaulted with all arrangements in “not
disbursed” status.
To skip disbursement of some group loans, set the ‘Disburse’ field to No.
To disburse partially (depending on product set up), key in the partial disbursement
amount.
Group disbursement is currently supported through FT. It is possible to disburse the loans
through an internal account if desired. The category code of the internal account
should be an allowed category in EM.FT.BULK.PARAM
When authorized, the FT records are generated via OFS. Any unprocessed FTs can be
reviewed and resubmitted using the “Resubmit FT” function.
Workshop 1 – Group Disbursements
Use All in One role page > Teller > Loan operations > Group Disbursement or Single
Group View > Bulk Operations > Group Disburse >New Group Disburse
Perform a group disbursement for your Group application generated previously through
Group Loan Origination.
Use All in One role page > Teller > Loan operations > Enquiries > Completed Group
Disbursements or Single Group View > Bulk Operations > Group Disburse
View the status of bulk disbursements and drill down on the right to view the details
Workshop 2 – Solution
1
Workshop 2 - Solution
The
arrangements
are disbursed
T3IBSAL
Agenda
Capture
New Loan
Close Disburse
Loan Loan
Manual Repayments:
The four Repayment options
under the Funds Transfer or
Teller application
T3IBSAL
Option 1
T3IBSAL
Option 2
Group Payment Parameters – EM.FT.BULK.PARAM
Parameter table used to configure Group Disbursements and Group Collections.
Parameters can be defined system wide or branch wise
Table ID can be SYSTEM or Company Id
Two bulk types are currently supported; Group Collections Screen (GCS) and DISBURSE
FT.MASTER.OFS.VER is the version to be used to post the individual FT payments using
OFS
Each payment item on the collections screen is parameterized In the PAYMENT.TYPE
sub-value fields
Payment type
GCS repayment items are configurable and
not hardcoded
Allowed categories
Accounts of this category code are filtered
and made available on the drop down list of
payment Accounts
Default Credit Account
Allowed parameters are Yes, No and Loan.
For Loan repayments, LOAN should be
selected in order to display all the loan
accounts of the Customer. If YES is selected,
the first Account of the ALLOWED.CATEG will
be auto-populated.
Default Loan repayment Amount
Whether or not to default the loan amounts
due.
FT OFS Version
Bank specific versions can be used here
instead of the Default version.
EM.FT.BULK.INPUT
The group collection details are parameterized on EM.FT.BULK.PARAM. On the collection
screen, the following details are to be populated.
Group number and name
Group member Items with PROCESS.PAYMENT set to Yes will be processed. Select No to skip a
member.
Parameterized Payment types are available on drop down list
Loan repayments are made into the loan Account. All Customer loans are presented on the
screen.
All Loan accounts of the member automatically defaulted. Savings accounts defaulted based on
parameter set up.
Group account auto populated from G.ACCOUNT.NUMBER field on MCB.GROUP application
Workshop 3
Choose existing group loans that you have created in previous workshop and;
View the group collection sheet
perform a group repayment action.
Use All-In-One RBHP > Teller > Loan Operations > Group Collection or Single Group View >
Bulk Operations > Group Collection >New Group Collection
(Prior to this workshop, trainer will run COB to the next due date for bill generation)
Use All-In-One RBHP > Teller > Loan Operations > Completed Group Collection or Single
Group View > Bulk Operations > Group Collection
View the processing status of the repayment items.
Workshop 3 - Solution
T3IBSAL
Repayments – Overpayment
Some loan products may offer the possibility for the customer to “overpay”, i.e. pay
more than the scheduled due amount
This functionality is only available through manual repayments as the automatic
settlement of repayments through the Settlement product condition will only perform
payments of amounts due
Depending on the settings in the product, an over payment may lead to a principal
decrease or to the arrangement being credited with an “unallocated amount”
In the case of an unallocated amount, any future (regular) due payments will be
made from this amount first
Choose an existing arrangement that you have created in previous workshops and look
at the financial details in the Arrangement Overview
Perform a Principal Decrease on the outstanding principal amount
Have the Principal Decrease transaction authorised
Look at the financial details in the Arrangement Overview
T3IBSAL
Workshop 4 - Solution
The current outstanding
principal amount is 5,019.64 in
this example
T3IBSAL
Workshop 4 - Solution
Principal is decreased by
USD 3,000 and
instalments recalculated
T3IBSAL
Workshop 5 - Payoff
Use AA Loans > Loan Enquiries > Find arrangements (LIVE) or All-In-One RBHP > Loans AA > Loans
Workshop 5 - Solution
Workshop 5 - Solution
Confirm to calculate
T3IBSAL
Workshop 5 - Solution
1. The Simulation Runner kicks off
Workshop 5 - Solution
When scheduled or due payments are not met on time, AA can manage the overdue
payments based on the overdue rules set up in the AA product which model the bank’s
Terms and Conditions
AA allows for overdue payments to go through various stages/periods of overdue such
as Grace, Delinquent, Non-Accrual Basis, based on the number of days that bills remain
unpaid, or based on the number of payments not met
Penalty interest will be calculated on overdue payments as configured in the AA loan
product
T3IBSAL
Overdue Payments
The Debit Rule in the Settlement arrangement condition defines how the AA loan product
reacts when not enough funds are available in the servicing account
Full: the entire amount due will be taken from the servicing account even if this will cause the
account to be overdrawn
Partial: the available amount will be taken from the servicing account and the remaining
unpaid part is moved into overdue status.
None: if the full amount is not available, no amount will be taken from the servicing account and
the entire due amount is moved into overdue status
T3IBSAL
Overdue Payments
When payments become overdue they will have an overdue status as defined in the
setup for the loan product.
Typically a bank may accept a Grace period where no penalty interest is applied, a
Delinquent period where Penalties are applied and a Non Accrual Basis period where
interest income would be suspended.
AA automatically assigns these statuses to overdue amounts and provides the tools to
keep track and manage the overdue amounts
AA will also automatically send out reminder notices at predefined intervals in respect of
the overdue status
Fees/Charges may be attached to payments becoming overdue
T3IBSAL
Overdue fees
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Average
status Start date of overdue No of days
status amount for overdue
status
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Advices generated
when payments
become overdue or
reach a new overdue
status
Bulk File Upload
The File Upload functionality is hinged on the T24 Data Formatting Engine (DFE) which is a common interface
framework designed in such a way that it supports both uploading of messages/files received from external
system into T24 as well extract data from T24. The application supports delimiter based files and fixed position
messages/ files.
Provides a mechanism through which bulk files may be uploaded from external applications e.g. Excel, and
processed in the InclusiveBankingSuite. Examples include uploading of staff loan repayments in bulk deducted
at source through the payroll.
Both financial and non-financial files can be uploaded with the appropriate configuration in place
The following parameter tables are required for File Upload Utility to function:
EB.FILE.UPLOAD.PARAM
DFE.PARAMETER
DFE.MAPPING
EB.PARAM>ALL-EM.FILE.UPLOAD
EB.FILE.UPLOAD.TYPE
The EB.FILE.UPLOAD application is used to upload new files. Files can be uploaded from the
user’s local machine or from a server location.
The default value on the Processing Type field is a parameter maintained in EB.PARAM>ALL-
EM.FILE.UPLOAD record
The format, columns of the file to be uploaded (e.g. Excel) should match the parameters
defined in EB.FILE.UPLOAD.TYPE and DFE.MAPPING respectively.
Upon committing the record, the file is automatically uploaded and processed. For example,
FT records are created in INAU status awaiting authorization
The service BNK/EM.DFE.FILE.PROCESS triggers the file upload process and should be set to
AUTO.
File Upload
The authorization icon in the Processed Files enquiry drills down to a fast path enquiry
that is used to authorize or delete highlighted records in bulk.
47
File Upload
Failed records can be reviewed and resubmitted through the Failed Uploaded records enquiry
File Upload
The list of fully processed files grows over time and may need to be archived from time to time.
Fully processed files can be archived through the delete icon shown below. All records in the
files must either be authorized or deleted, before file archiving. Where this condition is not met,
an error message is displayed.
T3IBSAL
Agenda
01 Loan Disbursement
02 Loan Repayment
03 Loan Maintenance
Capture
New Loan
Close Disburse
Loan Loan
Effect
Manage
Changes to Loan
Loan Repayments
T3IBSAL
Elements for
which
Arrangement
Conditions can
be changed Activities that can be performed
T3IBSAL
Use All-In-One RBHP > Loans AA > Loans > New Loan
Create a new loan arrangement for a loan amount of USD 13,000 over 1
year. Have the arrangement authorized
Recall the loan arrangement and change the loan term to a new duration
(for example from 1 year to 2 years).
Get the arrangement authorized
Observe the changes made to the activity log
Observe any changes made to the Repayment Schedule
Workshop 6 - Solution
In Settlement, indicate
the settlement
account(s)
T3IBSAL
Workshop 6 - Solution
Workshop 6 - Solution
The arrangement is
opened to allow
modifications
Workshop 6 - Solution
Workshop 6 - Solution
The
Repayment
Schedule
will be
updated
T3IBSAL
Workshop 6 - Solution
Future-dated modification
Workshop 6 - Solution
T3IBSAL
Workshop 6 - Solution
Top-up/Reschedule in InclusiveBankingSuite
In InclusiveBankingSuite, principal increase and term change activities can also be processed
using the Direct Loan input application.
When Reschedule or Top-up action is selected on the Direct Loan input record, the system
presents a list of all the existing loans of the customer on a drop down list for the user to select
the loan to be amended.
A pop enquiry is also auto-generated showing the current details of the loan.
Top-up operations may be with or without changes to the term of the loan contract. To
amend the term of the loan, enter the newly requested value on the requested term field.
Workshop 7 – Top-up operation in InclusiveBankingSuite
Use All in One RBHP> Loans AA > Loans > New Loan
Select a loan previously created for your customer.
Process a Top-Up of USD 1,500 and increase the loan term by 3 additional installments e.g.
from 6M to 9M
Get the record authorized
Disburse the top-up amount to your client.
Workshop 7 - Solution
Agenda
01 Loan Disbursement
02 Loan Repayment
03 Loan Maintenance
Capture
New Loan
Close Disburse
Loan Loan
Effect Manage
Loan
Changes to
Repayment
Loan s
T3IBSAL
For every loan arrangement T24 opens an account. This account is used to store
and manage all of the loan’s balances: outstanding capital, due amounts,
charges
When the loan reaches maturity or if the loan is redeemed before the maturity
date, the underlying account needs to be closed
The Loan Closure functionality allows the closure of the underlying account
based on one of two criteria:
Closure when the maturity date is reached
Closure when the balances of the account are zero
Manual loan closure is only allowed where CLOSURE.METHOD is set to MANUAL
or NONE.
Loan Closure would normally happen automatically at Maturity (if set up to close when
maturity is reached) or when all balances are zero (which could be at Maturity or when
the loan is redeemed early)
Loan Closure can also happen if a loan is cancelled within the initial cancellation period
Use All in One RBHP > AA Loans to write off one of the loans created in the previous workshops.
Workshop 7 - Solution
Workshop 7 - Solution
Workshop 7 - Solution
Loan Written Off
The report can be accessed using All in One > Loans AA> Arrears/Provisioning>Loans written off
The written off loans report displays a list of all loans written off including details such as the write
off amount, loan balance as at the time of write off, number of days in arrears up to write off
date and the provision amount as at the write off date.
The report can also be displayed per Account officer or per Group
Written off Loan Recovery
After loans are written off, the system provides access to the items written off, using
contingent accounts.
Two additional accounts are required to record and maintain access to written off items:
A contingent account for the client will be created by the system to warehouse the amounts
written off. The mnemonic of this account will be (W+WOF Loan Account Number + W).
A contingent control contra account to warehouse the second leg of all written off amounts.
Contingent control accounts may be opened per customer or per branch based on parameter
set up.
GIC.BD.PARAMETERS – WOF Recovery Parameters
Role based Menu > All in one Page > Parameters > General menu > Administrator > AA provisioning &
AA Products > AA provisioning and WOF parameters WOF parameters
GIC.BD.PARAMETERS – WOF Recovery Parameters
A system wide parameter table used to maintain WOF loan recovery parameters.
Recovery category
The Profit and Loss where recovery funds are to be credited as income.
Contingent Customer Category
Category code used to open the customer contingent account where written off items are
maintained
Contingent Internal Category
Category code used to open the contingent control account for contra entries.
GIC.BD.PARAMETERS – WOF Recovery Parameters
The process is initiated when a loan write off activity is authorized. The arrangement is then
set to PENDING.CLOSURE or CLOSE.
The Loan Recovery Account (Contingent Account) is opened in the loan currency using the
WOF loan account as the alternate ID.
If not already present, a Control account in loan currency is opened for the customer(if
GIC.BD.PARAMETER is set to CUSTOMER) or for the branch(if GIC.BP.PARAMETER is set to
BRANCH) – this is also a contingent account
The Contingent account is debited and the contingent control account is credited.
The OFS messages are stored in a work file EM.WOF.RECOVERY.WRK showing the results and
failure reasons in any.
T24 core does not allow passing of accounting transactions between contingent and
non contingent accounts.
Recovery Account Update
In addition to transferring the WOF balance to the contingent account, WOF balances are
stored on the Account property wise as contained in the balance maintenance property at
the time of write off.
Workshop 8 – WOF loan recovery
Use All in One role RBHP > Customers> Search Customer > Single Customer View >
Customer Portfolio
Open the Single Customer View of the customer whose loan was written off in Workshop 7.
Observe the newly opened contingent account
On the Customer contingent account, drill down to observe the account details.
Workshop 8 - Solution
Workshop 8 - Solution
Role based menu > all in one page > Teller>Transactions>Cash Deposit into Written off
loan
WOF Loan Recovery Transactions
Recoveries can be made in Cash, Cheque or Account transfers
Accounting entries: Dr Cash, CR Bad debit recovered PL Category to recognize the bad debt
recovered as income. A second entry, Dr Contingent Control Account, Cr Customer contingent
Account is posted automatically via OFS.
The Loan written off account may be used as an alternate to the recovery account.
By keying in the loan account number, the system automatically populates the
recovery account. The correct debit cash account is auto populated based on the
debit currency selected.
WOF Loan Recovery Transactions
ID of secondary FT passed via OFS is stored on the field PAYMENT.DETAILS of the primary FT and
vice versa.
When full amount is paid off, the Recovery account is closed.
Control account also closed if at CUSTOMER level and there are no other written off loans to be
recovered for the customer.
WOF & Recovery Entries Illustration
Start WOF
Provision Entries
Dr. PL Categ (10,000)
Cr. Provision Acct (10,000)
Start Recovery
Recover Loan –
2,000
Use All in One Role RBHP > Teller > Cash deposit into Written off Loan
Record a loan recovery cash deposit
Commit the record
Use All in One role RBHP > Customers> Search Customer > Single Customer View >
Customer Portfolio
Drill down to Account details of the Customer’s contingent Account and view the
updated balances.
Solution – Workshop 9
Solution – Workshop 9
Recovery entries can be reversed using the transaction reversal version available on the
menu.
Account history restore is required before reversal of transactions in closed recovery accounts.
The report can be accessed using All in One > Loans AA> Arrears/Provisioning>WOF Loans
Recovered
The written off loans report displays a list of all loans written off including details such as the write
off amount, the recovery account and the amounts recovered so far.
The report can also be displayed per Customer, per Account officer or per Group
WOF Loan Recovered
The report can be accessed using All in One > Loans AA> Arrears/Provisioning>WOF Loans
Recovered
The written off loans report displays a list of all loans written off including details such as the write
off amount, the recovery account and the amounts recovered so far.
The report can also be displayed per Customer, per Account officer or per Group
WOF Loan Customers With Credit Balances
The report can be accessed using All in One > Loans AA> Arrears/Provisioning>WOF Loan Customers
with Cr Balances
The written off loans report displays a list of Customer with written off loans yet with other Accounts
carrying credit balances.
Additionally, whenever transactions are attempted on any account of a customer with WOF Loans,
an override message is displayed to the user.
Other Enquiries
Outstanding Payments due report
Closed/Matured/Cancelled Loans
T3IBSAL
Congratulations ! Capture
New Loan
Close Disburse
Loan Loan