Defining Customized Products

The CL module gives you the flexibility to create customized products for promotional and special offers whereby you can offer special incentives/ concessions to certain or all categories of customers. Such products are referred to as ‘Promotions’. A promotion can have a different set of preferences, schedules etc. You can associate a loan with one or more promotions.

You can create customized promotion products in the ‘Promotions’ screen available in the Application Browser. You can invoke this screen by typing ‘CLDPROMT’ in the field at the top right corner of the Application tool bar and clicking on the adjoining arrow button.

The screen has two tabs: Preferences and Components. By default, the ‘Preferences’ tab is displayed when you invoke the screen.

Basic details

First, capture the following basic information about the promotion:

Promotion Code and Description

You have to specify a unique 4-character alphanumeric code to identify the promotion in the system.

Provide a brief description of the promotion. This description will be associated with the promotion product for information retrieval purposes.

Promotion Start Date and End Date

Specify the life span of the promotion. The promotion is valid for the period maintained here. By default, the current date is the ‘Start Date’ of the promotion. You can change it to a date in the past or future.

If you do not specify an end date for the promotion, it can be used for an indefinite period and the product becomes open-ended in nature.

4.7.1 Preferences Tab

As part of promotion preferences, you have to:

• Associate holiday periods

• Select the relevant UDEs and specify their values Tenor Preferences

You can set the minimum and maximum tenor limits for the promotion. You can also specify a standard or a default tenor.

Minimum Tenor

Specify the minimum tenor applicable for the promotion. If you associate the loan to the

promotion being maintained, the tenor of the loan account should be greater than or equal to the minimum tenor specified here.

Maximum Tenor

Likewise, you can also specify the maximum tenor for the promotion. The tenor of the loan accounts associated with the promotion should be less than or equal to the Maximum tenor that you specify here.

Default Tenor

The ‘default tenor’ is the tenor that is applied to the loan account upon association with the promotion. The value captured here should be greater than the minimum tenor and less than the maximum tenor. You can change the default tenor applied on a loan account during loan

processing. However, the new tenor should be within the minimum and maximum tenors maintained for the promotion.

Units

The tenor details that you specify for a promotion can be expressed in one of the following units:

• Days

• Months

• Years

It is mandatory to define the tenor details before specifying the holiday periods for the promotion.

Holiday Periods

You can maintain holiday periods for the promotion. Holiday periods or repayment holidays refer to the time when customers can avail repayment holidays owing to other expenses during the period. Holiday periods are defined in the ‘Holiday Period’ screen and the same are available for association with the promotion being maintained.

For more details, refer the section titled ‘Maintaining Holiday Periods’ in the ‘Maintenance and Operations’ chapter of this User Manual.

Select the appropriate holiday periods from the option list provided.

Promotion Rate Factor

You have to specify the special interest rates that are applicable for the promotion:

UDE Id

Select the UDEs (User Data Elements) for the promotion being maintained. The UDEs defined in the ‘Main’ tab of the ‘Consumer Lending Product’ screen are available in the option list.

UDE Value

Specify the value of the UDEs selected. The value specified here is used in the formula defined for interest calculation. The UDEs maintained for the Promotion takes precedence over the product level UDEs. At the account level, the UDEs get defaulted from the promotion in the order of priority, the highest priority promotion being applied last.

For more details on loan accounts, refer the ‘Account Creation’ chapter of this User Manual.

4.7.2 Components Tab

To specify the component details, go to the ‘Component’ tab of the screen.

The following components are automatically defined for the promotion:

• MAIN_INT: This component is designated as the ‘Main Component’ and the ‘Component Type’ is ‘Interest’.

• PRINCIPAL

You cannot modify the components or define additional components for a promotion.

Schedules

Maintain the schedule details for the two components in this section of the screen. These include the following:

• Sequence Number

• Schedule Type

• Start Reference

• Unit and Frequency

• Start Day

• Start Month

• Start Date

• Flag (Normal or Moratorium)

• Number of schedules

• Whether capitalization of the component is applicable or not

For more details on the schedule preferences, refer the section titled ‘Specifying policy preferences’ in this chapter.

After the promotion is saved and authorized, it becomes available for association with loan accounts.

You can associate one or more promotions to a loan account in the ‘Account Details’ screen. The tenor details, holiday periods, UDEs and component details maintained for the promotion get defaulted to the account in the order of the priority level specified for the promotions. The promotion that has the highest priority level will be applied last.

For more details on associating promotions to a loan account, refer the ‘Account Creation’

chapter of this User Manual