Specifying Policy preferences

You can associate policies at an installment level. Policies are user defined validations that are fired when an event is triggered. To link a policy, click ‘Policies’ in the ‘Component Installment Status’ screen – the following screen is displayed:

Specify the following in this screen:

Policy Code

The Standard Policies (defined through the ‘Policy Maintenance’ screen) and the Policies

associated with the product category are available in the option list provided. Policies are used to handle special validations and operations on a loan.

Execution Type

You can associate a policy at one of the following points in time in a loan -event lifecycle:

• Before Event

• After Event

• Both

The policy is executed appropriately.

For details on maintaining policy details, refer the section titled ‘Maintaining User Defined Policies’ in the ‘Maintenances and Operations’ chapter of this User Manual.

Schedule Preferences

In the ‘Component’ section of the screen, you need to maintain the applicable schedule details for each component:

Sequence Number

You can define more than one schedule for a component. The sequence number determines the order in which the individual schedule should be applied on a component. For instance, you can define a schedule structure consisting of a moratorium schedule and a normal schedule. The moratorium schedule, if defined for a component, should necessarily be the first schedule. You cannot have moratorium schedules in between normal schedules.

Type

This is the kind of schedule you want to define. The options are:

• Payment: This is used to define a repayment schedule. You can capitalize a payment schedule. If the ‘Capitalized’ option (under Component Definition) is checked, the

‘Capitalized’ option at the schedule level will also be checked for payment schedules. You can, however, uncheck/check this option for a schedule.

• Disbursement: You can maintain a disbursement schedule for loan disbursal if the

‘Disbursement Mode’ is automatic (this is maintained on the ‘Preferences’ tab). For auto disbursement, you have to maintain at least one disbursement schedule.

• Rate Revision schedules: This will capture the schedule at which the rates applicable to the component should be revised.

Start Reference

This is used to capture the reference to arrive at the due date of the schedule. The options are:

• Calendar: If you select this option, you should also specify the ‘Start Date’ for the schedule. For example, if an account is created on 15^th Sept with a ‘Monthly’ schedule frequency and the Start Date is 1^st, then the schedule due dates would be 1^st Oct, 1^st Nov and so on.

• Value Date: If you select value date, the schedule due dates will be based on the Value Date of the account. For instance, if an account is created on 15^th Sept and the schedule frequency is ‘Monthly’, then the schedule due date would be 15^th October, 15^th Nov and so on.

For a component, you can define schedules based on both value date and calendar date.

Frequency Unit

Here, you have to capture the unit to define the schedule. The unit can have the following values:

• Daily

If the schedule unit is ‘Weekly’, you should also capture the ‘Start Day’. Similarly, for units

‘Quarterly’, ‘Half Yearly’ and ‘Yearly’, you should also specify the ‘Start Month’.

Frequency

This is used in combination with ‘Unit’ explained above, to define non-standard frequencies. For instance, a ‘Monthly’ unit and frequency 2 implies that the schedule is bi-monthly (occurring every two months).

Start Day

If the schedule unit is ‘Weekly’, you should specify the start day to initiate the schedule. The

drop-Start Month

This is applicable if the schedule unit is one of the following:

• Quarterly

• Half Yearly

• Yearly

The drop-down box lists the months in a year Start Date

Here, you can specify a value between 1 and 31. This is applicable if the schedule unit is

‘Monthly’

Due On

You can use this to define a schedule on a particular date of the month. A value between 1 and 31 can be used for this purpose. If you specify a value here, the system will build the schedules based on this date even if you have indicated the ‘Start Date’ for the schedule.

Formula

You have to select the formula applicable for component value calculation. The Booked and Intermediate formulae defined for the component are available in the option list. With a user-defined formula maintained through the rule builder, you can define a schedule with multiple formulae.

Flag

You can define a non-repayment schedule or a repayment schedule. This field is used to identify the schedule type:

• Normal: This refers to a repayment schedule. Repayment happens as and when the schedule falls due

• Moratorium: This refers to a non-repayment schedule or a repayment holiday during the repayment cycle of a loan

Number of schedules

The value captured here determines the number of times a schedule frequency should recur. For example, a 12 monthly schedule would have a ‘Monthly’ unit and number of schedules as 12.

Capitalized

Check this option to specify capitalization of the component for a particular schedule. If the

‘Capitalized’ option (under Component Definition) is checked, the ‘Capitalized’ option at the schedule level will also be checked for payment schedules. You can, however, uncheck this option for a schedule.