Inclusivebanking Lending: Product Builder and Loan Operations

InclusiveBanking Lending
Product Builder and Loan Operations
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Lending Guide User Guide
Table of Contents
Introduction......................................................................................................................................... 7
InclusiveBanking Product Builder ...................................................................................................... 7
Overview ......................................................................................................................................... 7
Product configuration workflow ................................................................................................... 8
Inheritance Groups ....................................................................................................................... 10
The Inheritance Group Details: ................................................................................................. 10
The Shared Conditions: ............................................................................................................ 11
Shared conditions pre-defined in the InclusiveBankingSuite.................................................... 12
Basic Shared Conditions Details .............................................................................................. 12
Penalty Interest Parameters ..................................................................................................... 14
Penalty Selection ...................................................................................................................... 14
Basic Details ............................................................................................................................. 15
Fixed Rate ................................................................................................................................. 16
Floating Rate............................................................................................................................. 16
Settlement Parameters ............................................................................................................. 17
Payout ....................................................................................................................................... 17
Repayment Collection ............................................................................................................... 18
Charge Collection ..................................................................................................................... 20
Overdue Parameters ................................................................................................................ 21
Basic Details ............................................................................................................................. 21
Grace Period ............................................................................................................................. 22
Delinquent Period ..................................................................................................................... 23
Non-Accrual Basis .................................................................................................................... 23
Payoff/Closure Parameters ....................................................................................................... 24
Payoff Parameters .................................................................................................................... 24
Closure Parameters .................................................................................................................. 25
Shared Conditions Review ....................................................................................................... 26
Product Details .......................................................................................................................... 27
Product Groups ............................................................................................................................ 28
Overview ................................................................................................................................... 28
Access ...................................................................................................................................... 28
Procedure ................................................................................................................................. 28
Loan Product Group Details ..................................................................................................... 28
Global Conditions...................................................................................................................... 29
Shared Conditions .................................................................................................................... 29
Building Loan products ................................................................................................................. 31
Access ...................................................................................................................................... 31
2 InclusiveBankingSuite Product
Procedure ................................................................................................................................. 31
Main details ............................................................................................................................... 32
Product Builder settings ............................................................................................................ 32
Product Details .......................................................................................................................... 33
Customer/ Account Stage ......................................................................................................... 34
Basic Details Tab ...................................................................................................................... 34
Account Parameters Tab .......................................................................................................... 35
Limit Stage ................................................................................................................................ 36
Limit Parameters Tab ............................................................................................................... 36
Term Amount Stage .................................................................................................................. 38
Term Parameters Tab ............................................................................................................... 38
Amount Parameters Tab ........................................................................................................... 39
Payment Schedule Stage ......................................................................................................... 40
Principal Interest Stage ............................................................................................................. 43
Charge Selection Stage ............................................................................................................ 44
Charge Definition Stage ............................................................................................................ 45
Charge Calculation Tab ............................................................................................................ 47
Eligibility Stage.......................................................................................................................... 48
Customer Restrictions Tab ....................................................................................................... 48
Period Restrictions Tab ............................................................................................................ 50
Initial Deposit Tab ..................................................................................................................... 51
Lending Restrictions Tab .......................................................................................................... 53
Product review stage ................................................................................................................ 54
To change details of an existing AA product ............................................................................ 55
Loan Operations ............................................................................................................................... 56
Overview ....................................................................................................................................... 56
Loan Creation ............................................................................................................................... 56
Direct Loan Input....................................................................................................................... 56
Access ...................................................................................................................................... 57
Procedure ................................................................................................................................. 57
Direct Loan Input....................................................................................................................... 57
Joint Customer .......................................................................................................................... 59
Guarantors ................................................................................................................................ 59
Collateral ................................................................................................................................... 61
Group Application Details ......................................................................................................... 61
Authorisation of records ............................................................................................................ 62
Live arrangements .................................................................................................................... 62
View arrangement record ......................................................................................................... 63
Customer, Officers, Limit, Account Tabs .................................................................................. 64
Term, Amount and Interest Tabs .............................................................................................. 65
Charges and Charge Override Tabs......................................................................................... 66

Repayment Schedule Tab ........................................................................................................ 66
Settlement Instructions Tab ...................................................................................................... 68
Loan Disbursement ...................................................................................................................... 69
Individual Loan Disbursement .................................................................................................. 69
Access ...................................................................................................................................... 69
Procedure ................................................................................................................................. 69
Disbursement by Cash ............................................................................................................. 69
Disbursement by Cheque ......................................................................................................... 70
Disbursement by Account Transfer .......................................................................................... 71
Group Disbursement ................................................................................................................. 72
Access ...................................................................................................................................... 72
Procedure ................................................................................................................................. 73
Group disbursement screen ..................................................................................................... 73
Completed disbursements ........................................................................................................ 74
Loan Repayment Operations ....................................................................................................... 75
Individual repayment operations ............................................................................................... 75
Access ...................................................................................................................................... 75
Procedure ................................................................................................................................. 75
Repayment by Cash ................................................................................................................. 75
Repayment by Cheque ............................................................................................................. 76
Repayment by Account transfer ............................................................................................... 77
Group Collections ..................................................................................................................... 78
Group Bulk Payments Parameters ........................................................................................... 78
Access ...................................................................................................................................... 78
Group Collections Screen ......................................................................................................... 79
Access ...................................................................................................................................... 79
Procedure ................................................................................................................................. 79
Loan Maintenance ........................................................................................................................ 81
Procedure ................................................................................................................................. 81
Loan Top-up and Reschedule .................................................................................................. 82
Access ...................................................................................................................................... 82
Procedure ................................................................................................................................. 82
Top-Up and Reschedule Input Screen ..................................................................................... 83
Loan Payoff and Closure .............................................................................................................. 84
Procedure ................................................................................................................................. 84
Loan Write off ............................................................................................................................... 87
Procedure ................................................................................................................................. 87
Loans Written off enquiry .......................................................................................................... 88
Access ...................................................................................................................................... 88
Screen ....................................................................................................................................... 88
Write off Loan Recovery ............................................................................................................... 88
Procedure ................................................................................................................................. 89
WOF Loan Recovery Parameters............................................................................................. 89
Access ...................................................................................................................................... 89
Contingency Account opening process flow ............................................................................. 90
Written Off Loan Recovery Transactions .................................................................................. 91
Overview ................................................................................................................................... 91
Access ...................................................................................................................................... 91
Procedure ................................................................................................................................. 91
Reversal procedure................................................................................................................... 96
WOF Loan Recovered enquiry ................................................................................................. 97
Access ...................................................................................................................................... 97
WOF Loan Customers with Cr Balances .................................................................................. 97
Access ...................................................................................................................................... 97
Notes ................................................................................................................................................ 99
Document History
Author Version Date Action
Esther Muniu 1.0 9 March 2016 Initiated
Lukasz Czechowicz 1.1 21 March 2016 Reviewed
Lynn Petersen 2.0 29 March 2016 Published
Esther Muniu 2.1 27 March 2017 Updated
Lynn Petersen 3.0 7 April 2017 Published
Henry Omotayo 3.1 05 June 2017 Updated
Esther Muniu 3.2 25 June 2018 Updated
Comments:
05 June 2017 – Updated for progressive release of initial deposit.
25 June 2018 – Updated for the latest updates (R16.4/R17)
Introduction
This guide aims to provide information regarding the product configuration using Arrangement
architecture, the lifecycle of a loan to maturity, early settlement, write off and provisioning. The guide
is divided into two main segments, each describing the functionality, parameter set up procedures
and deal processing. The two main segments are;
1. Product Builder
2. Loan operations
InclusiveBanking Product Builder

Overview
The InclusiveBanking product builder provides a user-friendly process for defining loan products on
the AA module. It acts as an interface between the user and the AA module so that the user does
not need to understand the complex architecture of AA in order to setup new products. During the
process, the user only needs to setup conditions that are relevant to the business requirement. The
building of a new product is also driven by process workflow, which provides better control over the
process.
The organization of products built using the product builder is derived directly from AA. The products
are organized into product groups, and parent products are used to hold common product conditions
under a named object.
Note that in this release of the InclusiveBankingSuite, the editing of existing products need to be
done in the AA Product Builder Core application, proofed and published for these to come into effect.
A future release will allow editing to take place on the Product Builder.
First, decisions need to be made as to what steps would be included in a product builder and what
steps need to be done outside of the builder.
Product Setup Outside of the Product Builder (Predefined in the InclusiveBankingSuite)
1. Creation of Product Groups

2. Creation of Parent Products
3. Configuration of shared conditions
4. Configuration of necessary Group Parent Conditions
These have been predefined and made available for selection while using the product builder to
create child products. Child products inherit properties/conditions from the parent products.
Product Setup Inside of the Product Builder (Defined using the product building wizard)
 Configuration of Child Product Conditions for identified properties

 Creation of the Child (or final) Product
This chapter provides an overview on the various stages of the product builder and the product
conditions that were configured (by us) per product.
As part of the configuration, only the technical or global parameters were included in a parent
product. Since the system does not allow multi-values for the product group field in product creation,
it is not possible to create only one parent product record for all groups. Therefore, one parent
product record shall be created for each product group.
It is possible that a user is using an existing product as a parent (or model) product to a new product,
possibly because one or two product conditions in the new product differ from those in the parent (or
model) product. In this case, all already defined product conditions of the selected parent/model
product are displayed for the user to amend as desired. The product builder creates a unique, new
product out of this, with all product conditions created newly and named differently for the new
product. This is to ensure that when amendments are made in future, they are only made on the
product conditions necessary for each unique product.
The main tables used for product building are;

 EM.PRODUCT.GROUP
 EM. PRODUCT.LOAN
 EM.PRODUCT.PARAMETERS
The InclusiveBankingSuite is delivered with three sample Loan Product groups. Sample shared
conditions for each product group are also released for reference or use by your institution, if suitable.
The three Loan product groups are;
 Consumer Loans
 Business Loans
 Home Loans
Product configuration workflow

First, and only if necessary, a new inheritance group could be created to identify necessary
components for product building and select those that will be inherited across products.
Next, the selected inheritance components need to be defined for inheritance at product parent level.
The product parent is then created with option to inherit the defined components or to define new
ones at the product level.
The diagram below presents a sample inheritance flow.
The inheritance group Consumer contains two shared conditions groups: Personal and Staff. The
Personal shared conditions group defines two shared conditions for term/amount and principal
interest (please note that the shared conditions are named the same as the shared condition group
itself). Similarly, the Staff shared conditions group defines two shared conditions. The shared
conditions can be inherited by linking them to a product parent on a product group.
The product group ConsumerLoans contains one parent product: PersonalLoans. This parent
product defines that for personal loans, term/amount and principal interest conditions should be
inherited from the linked shared conditions – from Personal shared conditions group.
When defining a new consumer product StudentLoan, using the product builder wizard, and
selecting the product parent as PersonalLoans, the wizard would only ask for definition of conditions
that are not inherited – customer/account, payment schedule, etc. The term/amount and principal
interest conditions would be inherited from the parent. Please note the names of conditions created
for product – they are the same as the product code.
Finally, products are created by creating the product conditions relating to each. The workflow may
be summarised as below;
Create Define Create

Create
Inheritance Shared Product
Products
groups Conditions Group
Inheritance Groups
In the InclusiveBankingSuite, a sample Inheritance Group known as EM Loans has been defined for
use (if it meets requirements) and to show how to define conditions for inheritance (when necessary).
In this table, we defined the Inheritance Groups under one Group Code:
List the shared conditions associated with the Group Code (used for inheritance) by clicking on the
icon.
The Inheritance Group can also be viewed and amended by clicking on the icon.
The Inheritance Group Details:
Field name Description
Name Name of the inheritance group. In the model, there’s one group called
EmLoans.
Description The description of the inheritance group. This is a text box to facilitate a
complete description as and when required.
Product Line The AA product line the inheritance group is defined for. In the current
release, the product builder works for lending products only, so this is
defaulted to LENDING.
Currency Define the currencies in which your institution will allow loans to be taken
if more than the base currency. These currencies must be available on
the CURRENCY table.
Start Date The start date of this group.
The Shared Conditions:

The shared conditions are grouped under named objects – shared condition groups. Within a
condition group, the selection of the shared conditions to be defined is made.
The shared condition builder workflow is determined by the selection on this screen. When we select
‘Skip’, it means that the user does not wish to define any shared product conditions for the marked
property classes and hence those will be skipped in the workflow. Only items marked as “define” will
be presented in the workflow.
Property Class Property class name as released by Temenos
Property Name Property class instance as defined by InclusiveBanking team

A free format shared condition group code that is to be linked
Condition Group Code
to the Shared condition builder to determine which stages
(those marked as define) are to be presented in the
workflow.
It is possible to create more than one shared condition
groups by expanding the multi value Icon.
Condition Group Name A brief description of the shared condition group
The AUDIT Version displays audit details such as who was the inputter, who the authoriser, and
so forth, which are not available for entry or editing as they are automatically updated by the system.
Once the record is committed and authorised, the shared conditions group may be used to define
shared conditions for your institution, if necessary.
Shared conditions pre-defined in the InclusiveBankingSuite

Below are examples of shared conditions built by the InclusiveBanking team and available for use
by your institution, if they meet business requirements. These can be accessed using
…Product Parameters>>AA Products>>Product Parameters>>Inheritance Groups.
To access the products associated with the Group Code (used for inheritance), click on the icon.
In building the shared conditions, we defined stages, each with its own activities, these are discussed
below:
Basic Shared Conditions Details

In the Shared Condition Builder tab, the Inheritance Group and Condition Group that will drive the
condition builder workflow is selected:
Inheritance Group This is the ID of the inheritance group. We defined EmLoans.
Condition Group This is the shared condition group code defined within the inheritance
group. We defined Default.
In the Shared Condition Details tab, the client-specific values are defined:
Name Specify the shared conditions name.
Currency Define the currency/currencies for which the shared conditions are
required.
Start Date Define the date on which the shared conditions will become available for
inheritance.
Penalty Interest Parameters
Penalty Selection
Calculate Define whether penalty interest is to be calculated on arrear repayments.
Selection Select an existing penalty condition, or create a new condition.
Condition Name Enter the name of the penalty interest condition. In this example the
condition called OnePercent, which represents 1% pa penalty interest,
would be created.
Basic Details
Interest Type Indicate whether the penalty interest is a fixed rate or linked to a floating
rate index.
Day Basis Define the interest day basis. Options are:

A – 360/360
B – 366/360
C – 366/366
D – 360/366
E – 366/365
F – 360/365
Accrual Rule Define whether penalty interest will be calculated on the actual days in
the period, for example first day, last day as well as the rounding rules.
Fixed Rate
Fixed Rate Specify the fixed interest rate to be applied to penalty interest calculations
Rate Negotiable Indicate whether this rate may be negotiable at arrangement creation
stage.
Floating Rate
Rate Key Define the floating interest rate index key to be used in calculating penalty
interest.
Margin Define the margin to be added/deducted/multiplied to the floating rate if

applicable.
Negotiable Indicate whether this rate may be negotiated at arrangement creation

stage.
Negative Rate Allowed Indicate whether negative penalty interest rate will be permitted.
Settlement Parameters
Payout
Disbursal Category In the event of loans being automatically disbursed to another account
held with your institution, define the category code of that account here.
The system will validate that the borrower has an open/active account of
this category code. This is for automatic disbursement only, where the
borrower does not wish to draw from the loan arrangement itself.
Repayment Collection
Automatic Specify if repayments are to be collected from a designated account on

Repayments the due date.
Automatic Negotiable Indicate whether automatic repayments may be negotiated on

arrangement creation stage.
Repayment Rule Specify how you would like the system to treat funds available in the
repayment account, for example when the account holds an available
balance less than what is to be collected. Options are;
1. Full – The amounts due will be deducted from repayment account
even if the account becomes overdrawn.
2. None – If the repayment account does not hold enough funds to
cover the due amount, settlement will not be attempted.
3. Partial – The repayment amount due will be deducted from the
repayment account only to the extent of the available balance. In
InclusiveBanking, we defined automatic retrial of settlement where
the system checks during Close of Business and collects additional

funds that become available in the repayment account until the
amount due is fully settled. This is done by the Transaction cycler
function of T24. For further information, please refer to the
Transaction Cycler user guide.
Note: The system does not use blocked Initial deposit amounts for
automatic settlement of loans.
Repayment Rule Indicate whether the rule defined above may be negotiated at
Negotiable arrangement creation stage.
Repayment Category In the event of loans being automatically repaid from another account
held with your institution, define the category code of that account here.
The system will validate that the borrower has an open/active account of
this category code. This is for automatic repayment only, where the
borrower does not wish to deposit to the loan arrangement itself.
Charge Collection
Same Charge Rules Specify if charge collection rules are to be the same as repayment
collection rules, i.e. to be collected from a designated account on the due
date.
Automatic Charges Indicate if charges are to be collected automatically for loan

arrangements created of this product.
Automatic Negotiable Indicate whether the rules defined above may be negotiated at
arrangement creation stage.
Collection Rule Indicate how you would like the system to respond when the amount due
in charges is not available in the designated repayment account on the
due date.
Collection Rule Indicate whether the rule defined above may be negotiated at
Negotiable arrangement creation stage.
Collection Category In the event of charges being automatically collected from another
account held with your institution, define the category code of that
account here. The system will validate that the borrower has an
open/active account of this category code. This is for automatic collection
of charges only, where the borrower does not wish to deposit to the loan
arrangement itself.
Overdue Parameters
Basic Details
Ageing Type Indicate whether overdue processing will follow number of days or
number of missed repayments.
Bill Settlement Indicate whether only bills repaid in full are to be considered as settled.
For more information, please refer to the AA Lending user guide.
Age Bills Indicate whether a bill needs to be considered for further aging when it is
deemed to have been settled. For more information, please refer to the
AA Lending user guide.
Grace Period
Grace Days/Bills In the Basic Details, it was decided whether to follow number of days or
number of overdue payments (bills). Indicate here when the bill which is
due is to be moved to grace status.
Enter ‘0’ if Grace period does not apply for your institution.
During grace status penalty interest is accrued but not posted should the
borrower pay before the end of the grace period.
Grace Notice Days How many days after entering grace status until a chaser/advice is to be
sent to the borrower?
Frequency Define how often a chaser/advice is to be sent to the borrower during the
grace status.
Delinquent Period
Delinquent Days/Bills In the Basic Details, it was decided whether to follow number of days or
number of overdue payments (bills). Indicate here when the bill which is
due is to be moved to delinquent status.
Penalty interest accrued is now applied.
Delinquent Notice Indicate the number of days after the loan has entered delinquent status
Days that the system should generate the chaser/advice.
delinquent status.
Non-Accrual Basis
NAB Days/Bills Indicate the number of days since the bill has gone into arrears when the
loan is to be moved to ‘Non-Accrual’ status.
The calculation of penalty interest is now suspended.
Chaser Advice How many days after entering Non-Accrual status until a chaser/advice
is to be sent to the borrower?
Non-Accrual status.
Payoff/Closure Parameters
Payoff Parameters
Payoff Expiry Days Specify the number of days after which a payoff bill expires. A payoff is
executed whenever a client wishes to pay off their loan and close the
contract ahead of the maturity date.
Settle Dues Indicate whether all amounts due prior to the payoff date should be
considered as settled or not.
Please refer to the AA Lending user guide for more information on Payoff
functionality.
Closure Parameters
Closure Method Select the closure method for arrangements of this product. Options are
Manual or Automatic.
Closure Type Indicate whether automatic closure is to take place based on contract
balance (being zero) or on maturity date.
Closure Period Provide the number of days after which the closure action is to be
triggered on arrangements where the automatic closure is based on
maturity date.
Posting Restrictions Select the ‘posting restriction’ to be applied to the account when the
automatic closure is being processed.
Shared Conditions Review
You are able to review the Setup Details by clicking on the Setup Details link:
Product Details
Inheritance Group We defined EmLoans.
Conditions Group We defined Default.
Name As defined by you in Basic Shared Conditions Details
Currency As defined by you in Activity: Basic Shared Conditions Details
Start Date As defined by you in Activity: Basic Shared Conditions Details
Product Groups
Overview
This table is used to create Product Groups under which Products are to be designed. The
InclusiveBankingSuite is delivered with Three (3) product groups predefined for reference purpose.
Your institution may use these product groups (if they meet requirements) or create new ones based
on your organisation’s loan product requirements.
Access
...Product Parameters>>AA Loans>>Product Parameters>>New Loan Product Group
Procedure
To create a new Product Group
1. Click on the New Loan Product Group icon
2. Enter the group details fields as described below
3. Link the shared conditions (created under inheritance groups) to the respective properties
4. Proof and publish the Group record.
Loan Product Group Details
Name Enter the name of the product group
Description The description of the name above. This is a text box to facilitate a
Product Line Lending Product Line (defined by Temenos Core)
Range start Specify the category code range start for products to be created under
this Product group. For AA Lending, the category range 3101 to 3399 is
available.
Range end Specify the category code range start for products to be created under
this Product group.
Currency Define the currencies in which your institution will allow loans to be taken
for products in this group. These currencies must be available on the
CURRENCY table.
Start Date The start date of the group and related products.
Global Conditions
Global conditions are Group Parent Conditions that apply to all products in the same group and are
unlikely to differ from one product to the other. These are predefined by the InclusiveBanking team
and should not be amended without exercising due care. No user input is required on Global
Conditions version.
Shared Conditions
In this version, shared condition created using the inheritance group are linked to the properties to
form a second level of parent conditions for the Group. This is done as follows;
1. Select “Inherit” on the stage level for the properties whose conditions are to be inherited.
2. Select the parent condition defined previously, from the lookup list
For all the other items left with the default setting of “Define”, the Product builder workflow will present
the respective stages (input screens) for you to define the product conditions.
Parent Product Code The name of the parent product used for building products with the
shared conditions configured below.
Parent product Name The description of the name above. This is a text box to facilitate a
Note: It is possible to define various product parents with different
inherited conditions or without any inheritance where all product
conditions are to be defined in the product builder. The parent product
code field may be expanded to create an additional parent records.
Stage Level Select Inherit or Define. Where inherit is selected, an existing condition
must be linked on the Parent condition field. No further input required with
“define” selection.
Once the product group record is committed, it needs to be proofed and published before Products
can be created. This is done using the Manage icon available on the list of Product groups.
To proof the Product Group, click the icon and to publish. Global Parent conditions
should be proofed and published first before the Parent conditions.
Building Loan products

Having previously created the Product Group, Group conditions and Parent conditions, the first step
in building the product is to link the product to the respective product group and parent product. This
link to the Parent conditions also establishes the product conditions to be configured using the
product building workflow. These would have been marked as “Define” at Group creation stage.
Access
Product Parameters>>Loan Products >>Loan Product>>New Loan product
Procedure
To create a new Product group
1. Click on the New AA Loan Product icon
2. Link the Product to a Product Group, a Parent Product and enter the Product details
3. Follow the workflow stages as described below
4. Proof and publish the Product.
Main details
Product Builder settings
Product Group The Product group where the new product belongs
Product Parent The Group parent code defined previously at Group definition stage.
Product Details
Name Enter the Product name
Description Enter more meaningful description of the product.
Category Enter the product category. This category code should fall within the
category range defined in the Product Group. Where the category code
has not been created previously, the New category link may be used to
create the category code without exiting the workflow.
Currency Enter the Product currencies. The product currencies should fall within
the Currency list defined in the Product Group.
Start Date Enter the start date of the product. Start date can be in the past
meaning back dated arrangements may be opened.
End Date Enter the end date of the product.
Customer/ Account Stage

In this stage, product conditions for Customer, Officers and Account are defined.
Basic Details Tab
Allowed Indicate whether Joint Ownership is allowed for this product.
Name The name of the Arrangement account to be opened. In the

InclusiveBankingSuite, the product name is defaulted on this field. This
facilitates reporting whereby each Loan account of the customer is
identified with the name of the loan product.
Account Parameters Tab
Base Date type Select the base date to determine the contract anniversary date
Convention Select the date convention to be used while generating payment

schedules. Options are
1. Backward
2. Calendar
3. Forward
4. Forward same Month
Please refer to the AA Lending user guide for more details.
Convention negotiable Indicate whether user are allowed to change these settings on contract
input
Limit Stage
Limit Parameters Tab

Use Limit Select Yes if the limit definition is required, else select No.
Limit Type If User Defined is selected, then Limit conditions need to be defined in
the subsequent fields as described in the next section.
If Default is selected, the system automatically creates a limit record of
an amount equivalent to the loan amount using the default IBS predefined
LIMIT.REFERENCE records as follows:
 8310 – Consumer Loans Non-Revolving
 8320 – Consumer Loans Revolving
 8330 – Business Loans Non-Revolving
 8340 – Business Loans Revolving
 8350 – Home Loans Non-Revolving

 8360 – Home Loans Revolving
Limit Reference If the limit type field was set to “User Defined”, enter the
LIMIT.REFERENCE code to be used to create the limit.
For more information please refer to the Limits User guide
Single Limit Whether the Limit listed in LIMIT.REFERENCE is for exclusive use of the
Arrangement.
Term Amount Stage

In this stage, Term and Amount conditions are defined.
Term Parameters Tab
Default Term Enter the default term for all contracts if applicable for the product being
defined. Leave as blank if not applicable
Term Negotiable Indicate whether users are allowed to change the contract term at
contract input.
Minimum Term The minimum term allowed for the product. The last letter should be one
of the following; DWMY
Breakage Action Indicate whether the system should display an error or override message
when the rule is not met.
Maximum Term The maximum term allowed for the product. The last letter should be one
of the following; DWMY
Cooling period Enter the number of days within which the contract can be pre-closed
without a penalty.
For the cooling period functionality to take effect a “Request payoff”
operation needs to be triggered and the arrangement has to be repaid
through the LENDING-SETTLE-PAYOFF activity during the cooling
period. Upon triggering these activities, Accrued interest amount for the
arrangement till the pre-closure date is reversed. Any interest amount
that has already made due/capitalized will not be reversed and will be
included as part of the payoff bill.
If this is done within the Cooling period specified no interest will be
calculated for the principal amount.
Amount Parameters Tab
Default Amount Enter the default Amount for all contracts if applicable for the product
being defined. Leave as blank if not applicable
Amount Negotiable Indicate whether user are allowed to change the default Amount at
contract input.
Minimum Amount The minimum Amount allowed for the product.
Maximum Amount The maximum Amount allowed for the product.
Revolving Indicate if the contract amount should be revolving or not. The options
are;
1. 1. No – Revolving functionality not required
2. 2. PAYMENT- any payment against the outstanding amount, whether
due or not due, will result in the available amount increasing.
3. 3. PREPAYMENT - only repayments against the outstanding amounts
not yet due will result in the available amount increasing
Payment Schedule Stage

In this stage, payment schedule conditions are defined
Disbursement Type Indicate whether loans under this product are to be disbursed fully or
progressively.
Automatic Disbursal Specify if contract opened under this product should be automatically
disbursed on authorisation of the contract.
Disbursal negotiable If the Automatic Disbursal setting can be amended at contract input
Repayment Frequency Specify the default repayment frequency for contracts opened under
this product
Frequency negotiable Indicate if the default repayment frequency can amended at contract
input
Repayment Type Indicate the repayment type to be set for contracts opened under this
product. Options are;
1. Constant – results in equal repayments. This is used for ‘Annuity’

contracts where instalment amounts are uniform.
2. Linear – Principal repayments remains fixed over the life of the
arrangement while interest repayment decrease over the term of the
contract. Thus resulting in a non-uniform instalment.
3. Full bullet – Both principal and accrued interest are payable on the
maturity date.
4. Principal Bullet – Principal is due on maturity date but interest will be
payable on the defined frequency.
Prepayment Action What should happen when loan prepayment is made? Options
supported are;
1. Recalculate instalment amount based on the new reduced principal
2. Recalculate the residual amount
3. Recalculate the term by keeping the instalment amounts unchanged.
Principal Interest Stage
Calculation Method Select Flat or Reducing balance
Interest Type Specify if the principal interest is calculated using a fixed rate or is
linked to a floating rate index
Day Basis The day basis to be used for principal interest calculation.
Note:
In the InclusiveBankingSuite Interest day basis automatically defaulted
based on payment schedule frequency settings.
 If Interest Calc. Method is Flat and Payment Type is Constant
Monthly, Day Basis is defaulted to ‘A’ (360/360).
 If Interest Calc. Method is Flat and Payment Type is Constant
Weekly or Constant Bi-Weekly, Day Basis is defaulted to ‘G’
(366/364).
 If Payment Type is Constant Quarterly or Constant Half-Yearly,

then Interest Calc. Method Flat is not allowed.
 If Interest Calc. Method is Reducing Balance, Day Basis is
defaulted to ‘E’ (366/365) and interest calculated based on
outstanding loan balance (CURACCOUNT)
 Interest on Flat loans is calculated based on original commitment
amount (TOTCOMMITMENT).
Accrual Rule When accruing interest, how should the system determine which
amounts to include in each day's balance, the actual days to include in
the period (e.g. first day, last day or Both)
Calculation threshold Specify the maximum loan balance for which interest will not be
calculated, it applicable.
Minimum interest Indicate the minimum interest amount to be posted for a contract if
amount applicable. If the calculated interest amount is less than the amount
specified in this field, system will waive or adjust the interest amount, as
per the setting below.
Minimum interest Indicate if the calculated interest amount has to be waived or adjusted.
waive Defines if the calculated interest amount goes below minimum interest
amount set, should the system waive the interest amount or post the
minimum amount.
Charge Selection Stage
Charge name Name of the charge to be defined
Same condition Do you want to define the same charge condition for all currencies
available for the product? Options are;
1. Yes – A default charge condition will be created for all Currencies
defined for the product.
2. No – Separate charge conditions are to be defined for each
currency of the product
3. Not applicable – Select this option if the charge does not apply
to the product.
Charge Definition Stage
Charge link Specify if the charge should be applied as a result of an activity, breaking
a restriction or attached to repayment schedule
Linked activity If the charge is to be linked to an activity, indicate which activity it

applies to? Options are;
1. Disbursement
2. Missed payment
3. New arrangement
4. Payoff
5. Principal Decrease
Linked restriction If the charge is linked to a restriction, select one of the following
restrictions to be applied.
1. Paying off after cooling off period
2. Principal decrease count in Period
3. Principal decrease tolerance
4. Principal decrease total in period
5. Principal decrease within
Restriction Period If a period based restriction is selected, provide the period. Accepted
values are nnM or nnY or nnD or nnW
Restriction count Enter the number of transactions to be evaluated in the restriction within
the given period.
Restriction Value If the restriction is amount based, provide the value to be evaluated
within the given period
Frequency Provide the frequency of charge collection where the charge is to be

attached to the repayment schedule.
Charge Calculation Tab
Charge Type Indicate whether the charge is fixed or calculated. If calculated, additional
information is required as described below.
Charge Amount The charge amount if fixed charge type is selected.
Calculation Source Select one of the following as the basis for the calculated charge.
1. Current principal
2. Loan Amount
3. Overdue Principal
4. Transaction
Rate Applied Enter the Charge calculation rate
Minimum Amount Defines the minimum charge amount to be applied to calculate charges.
If the charge calculated is less than the amount defined in this field then
minimum amount will be charged
Maximum Amount Defines the maximum charge amount to be applied to calculate

charges. If the charge calculated is less than the amount defined in this
field then maximum amount will be charged
Calculation Threshold Define the threshold amount (base amount) below which charge
amount will not be calculated
Eligibility Stage
Product eligibility conditions are defined at this stage. At least one restriction must be defined for
the product.
Customer Restrictions Tab
Minimum Age If borrowers of this product must be of a minimum age, enter that age
here
Breakage action Should a particular borrower not meet the product condition, what type
of a message should be displayed?
Note: Breakage action must be defined for all eligibility conditions
applicable to the product as described below.
Maximum Age If borrowers of this product must be of a maximum age, enter that age
here
Gender If this product is restricted by gender, Select one of the options from the
lookup list.
1. Male
2. Female
3. Other (Non Individual)
Residence If borrowers of this product must be residents of a particular country,

select the applicable Country from the lookup list
Nationality If borrowers of this product must be nationalities of a particular country,

select the applicable Country from the lookup list
Classification Indicate which classification type(s) of customer may make use this
product.
1. Full Member
2. Non Member
3. Non-voting Member
4. Provisional/Pending Member
5. Resigned Member
6. Resigned
7. Deceased
Profession If borrowers of this product must be of a particular profession, select the

applicable profession from the lookup list
The list of profession is maintained in …>>System Parameters
>>Customers>>Customer Tables>>Education Level.
If the product relates to all professions, leave this field blank
Period Restrictions Tab
Minimum Customer This is the minimum number of months that a customer must be a
Months member of your institution before they can make use of this product if
relevant, else leave blank
Minimum Saving This is the minimum number of months that a customer must have a
Months savings account in operation with your institution before being able to
make use of this product. leave blank if not applicable
Categories to be evaluated for savings months are maintained in
Product Parameters>>Loan Products >>Product Builder
Parameters>>Global Product Parameters
Initial Deposit Tab
Currency This is a multi-value field set that allows initial deposit parameters to be
defined for each currency of the product.
Deposit Amount Indicate the amount of savings that a borrower is required to have before
availing a loan under this product.
The system will automatically block the savings value as defined on the
product until the loan is settled, or the block is manually released.
In this release of the system, the block does not reduce in line with the
outstanding (current and overdue) principal, but remains constant until
the loan is settled or the block is manually released.
The block is applied by using the AC.LOCKED.EVENTS functionality.
Please refer to the Accounts user guide for more details.
Categories to be evaluated for initial deposit are maintained in Product
Parameters >>Loan Products>>Product Builder Parameters>>Global
Product Parameters.
Deposit Percentage If the initial deposit should be a percentage of the loan amount applied
for, indicate the rate here.
However, unlike the Deposit Amount field which does not reduce in line
with outstanding (current and overdue) principal balance, the initial
deposit amount blocked based on the percentage entered on this field
will reduce if the field Progressive Release is set to Yes.
Other currencies Specify if accounts with different currency than product currency are
allowed allowed for initial deposit calculation.
Breakage Action Specify the breakage action when initial deposit requirement is not met.
Progressive Release If the deposit amount blocked based on the Deposit Percentage field
above should be released in line with the outstanding (current and
overdue) principal balance, then this field should be set to Yes. For
example, if a loan amount of USD1000 is approved and 10 percent
(USD100) is initially blocked in a customer’s indicated account, the
amount blocked will be automatically reduced to USD90 when the
customer makes a payment of USD100 on the loan thereby reducing
the outstanding balance to USD900. In summary, for this example, the
amount of deposit blocked will be equivalent to 10 percent of the
outstanding balance of the loan at any time during the life of the loan.
Partial Blocking If breakage action is set to override, it is possible to further define

Allowed whether or not partial blocking is allowed. This means that available
funds in the account with the greatest balance are blocked.
Increase on Funds If Partial Blocking Allowed field is set to Yes, then this field allows a
Availability user to specify whether or not additional funds should be blocked (up to
the maximum required) when more funds become available in the
indicated initial deposit account.
Apply New Percentage In the case that the initial deposit percentage is changed on this table
For while loans exist in the system, should the new percentage apply to
both new and existing loans or should it apply to new loans only? Select
the option applicable to this product.
Lending Restrictions Tab
Loan purpose If the product is restricted to certain purposes, select the loan purpose
code from the lookup list. Loan purpose codes are maintained under
General Menu>>Administrator>>System Tables>>Loan Purpose.
This is a multi-value field. If the product relates to ALL loan purposes,
then leave this blank.
Source of funds If the product is restricted to certain Sources of Funds, select the Fund
ID from the lookup list.
Source of Fund codes are maintained in General
Menu>>Administrator>>System Tables>>Source of Funds.
See the Shared conditions section of this guide for other condition definition procedures.
Product review stage

Once all product conditions are completed, the product builder next presents a product review stage
where the parameters defined may be reviewed by the approving officer as defined in AA Product
Builder>>Product Builder Parameters>>Loan Product Build Stage Owners
To review the product settings, click on the Set up details link
Once satisfied with the product settings, the product may be proofed and published. Some settings
may be amended during the product review stage. The product build status can be seen in
AA Product Builder>>Products
To amend any of the stages, click on the icon to input the changes. To continue the product
build after successful product review, click on the icon to continue on to the proof and publish
stages. When complete, the publish stage will be updated with an activity status of process complete.
The product together with all defined product conditions are created in AA.
To change details of an existing AA product

In its current release, the product builder is only used to build new products. Thereafter, the product
is maintained outside of the builder. This means that changes to any of the property classes and/or
product conditions are to be made using the AA Core product builder which is available in >>Product
Parameters>> AA Products>>AA Core Configuration.
For example, to change the Term and Amount conditions of a product;
1. Click on All in One RBHP>>Product Parameters>>AA Products>>AA Core Configuration.
2. Click on Term Amount Property Class>>your product condition and edit the relevant
attribute.
3. Proof and publish the product.
To edit eligibility rules;
1. Click on …>>AA Product Builder>>Loan Products>>Edit Eligibility Settings.
2. Enter the product name to access existing conditions.
3. Make amendments as necessary and commit the record.
4. Once authorized, the product is updated with the new eligibility conditions
To edit settlement rules;
1. Click on …>>AA Product Builder>>Loan Products>>Edit Settlement Settings.
4. Once authorized, the product is updated with the new settlement conditions
To edit limit rules;
1. Click on …>>AA Product Builder>>Loan Products>>Edit Limit Settings.
4. Once authorized, the product is updated with the new limit conditions
Loan Operations
Overview
In AA, contracts are known as arrangements. A loan arrangement is an agreement with a customer
for a loan product. It has an agreement date, is account-based and is currency specific. The
arrangement contains all details of the agreement such as;
 Amount and duration of the contract
 Interest rate
 Fees/commissions/charges
 Repayment details such as repayment frequency
 Repayment modalities
When a new arrangement is created, the arrangement is considered as a ‘Commitment’. The
arrangement is the central place for managing the agreement once it is in force. In this guide, the
terms Arrangement and Loan may be used interchangeably.
In the InclusiveBankingSuite, a number of Loan operations have been preconfigured and are
delivered with the system for your use. These operation include;
1. Loan creation (Direct Loan Input)
2. Individual Loan Disbursement
3. Group Loan Disbursement
4. Individual Loan repayments
5. Group Loan repayments
6. Loan Top-up and rescheduling
7. Loan payoff
8. Loan Write off
Loan Creation
In InclusiveBankingSuite, arrangement records are created automatically in two ways;
1. Through Loan Origination – Once an application is successfully approved, the final stage in
loan Origination is the creation of the loan record. Please refer to the InclusiveBankingSuite
Loan Origination guide for more information.
2. Through Direct Loan Input - Should your institution choose not to use the Loan Origination
solution in InclusiveBankingSuite, Loan details may be entered on the Direct Loan Input
application. Arrangements are then generated automatically upon authorization of the Direct
Loan Input record.
Direct Loan Input

This application provides a simple input screen where loan details such Borrower details, Product
requested, Amount requested and Term requested etc. are entered and upon authorization, loan
arrangement records are automatically generated. It also provides functionality to create all Group
members’ loans from a single screen. In addition to the loan details, Joint customers, Guarantors
and Collateral may be attached to the loan. A loan agreement document is generated for the
customer to acknowledge the loan details as entered in the system. Limits are automatically
created by the direct loan input application and both individual and group loans may be
automatically disbursed.
Access
All in one RBHP>>Loans AA>>Loans>>New Loan
Procedure
1. Click on the New Loan icon
2. Enter all the required data on the fields as described below
3. Commit the record and authorise
Direct Loan Input
Loan Input ID The system generates the next available reference number, the format is
DL (application code) followed by the Julian date (279 th day of the year
2016) followed by a 5-digit sequential number.
Input Date Enter the loan value date
Customer Type Indicate whether the loan is being created for an individual or a group.
The two Customer Type options are mutually exclusive. If Group is
selected, then the system hides Customer Id and if Individual is selected,
the system hides Group Id. Similarly, the tab “Group Application Details”
will be hidden if Individual customer type is selected.
Note: If customer type is set to Individual yet the customer is linked to a
group, such a loan is treated as an individual loan and excluded from all
group loan reports. To create a loan for one or few group members, select
group customer type and maintain only the current borrowers on the
group application details tab.
Customer As individual was selected in the Customer Type field (above) the system
requires you to enter the Customer ID and on entering the code, the
customer’s last name displays as enrichment characters to the field.
Validate that you are working with the correct customer record.
Asset Class This is a no-input information-only field indicating the worst classification
of the customer from all his or her existing loans.
Loan Action Select New Loan to indicate new loan creation. Reschedule and Top up
actions are described in the Loan Maintenance section of this guide.
Loan Details
Loan Product Select the product code from the lookup table. The value entered in this
field will manage the values entered in the subsequent fields.
Amount requested Enter the amount that the customer wishes to borrow.
Term Requested Enter the repayment term. Valid input is 12W, 3M, 2Y.
Payment Frequency The repayment frequency is populated from the product where the
conditions have been defined.
Repayment Start Date The default is the automatically set as the input date plus the payment
frequency. Enter the desired repayment start date if different from the
default date.
Currency The currency populates from the product. If a multi-currency product, the
field is left blank for the user to select the relevant currency, from the list
of currencies linked to the product.
Interest Rate The interest rate populates from the product. If the product is set to allow
negotiation of the interest rate or margin, the interest rate and Margin rate
fields are set as editable. Any amendments on the defaulted values are
validated against the product negotiation rules.
Instalment Amount The system calculates and displays the repayment amount for
information purposes.
Source of Funds Select the source of funds from the lookup table
Loan Purpose Select the loan purpose from the lookup table.
Loan Reason This is a free-format input field for you to capture any other relevant
information.
Notes Capture any other relevant information in this area.
Joint Customer
Joint Customer ID If joint customer is relevant to the loan being processed,

enter the customer number of the joint customer/s and the
system will populate the fields below from the data as
captured on the relevant customer files:
Joint Customer Name The name of the joint customer
Joint Customer Address The address details in the multi-value set of fields
Joint Customer Date of Birth The date of birth
Joint Customer Identification ID number of the joint customer. The data is displayed for
you to verify that you have entered/selected the correct joint
customer number. This customer will be jointly responsible
for the loan and the terms and conditions thereof.
Guarantors
Guarantor may be linked to the loan. With a multi-value field linked to both the customer table and
the guarantor table, existing customers of the institution may be selected as guarantors or non-
customers could be created as guarantors in the guarantor table and thereafter selected as
guarantors.
In the screen below, guarantor Ids starting with a “G” digits were created on the guarantors table
and those with six digits are records from the Customer Information File.
Guarantor ID Select the Guarantor ID from the look up table, which contains both
records from the Live Customer and Guarantor tables.
The New Guarantor link may be used to access the guarantor table
and create new external guarantors if not already existing.
Account If the guarantor is a customer of your institution, select the account to

be blocked as security for the loan from the lookup table.
The AC.LOCKED.EVENTS table is updated with the amount blocked
as well as the expiry date (maturity date of the loan) so that the block
may be released when the loan is fully repaid or reversed.
Amount Enter the amount of the guarantee provided. If the value entered is
greater than the available balance on the (above) account, the break
rule message will be displayed and depending on how the parameter
has been defined, you will be able to proceed or not.
No validation is carried out on the amounts entered where the
Guarantor is not a customer and does not hold an account in your
institution.
When a non-customer (external) Guarantor is selected and the
Guarantee Amount entered, the rule defined in the ‘Mandatory
Checklist for External Guarantors’ is checked and the fields presented
for input.
Document
Use the scan icon to take an image of the document as evidence
of the pledge over the item offered as collateral. Else, if the image
already exists, select the Document ID from the lookup table.
A field has been provided in the IM.DOCUMENT.IMAGE application
to store the Loan Account number.
Collateral
Collateral details may be entered optionally on this tab.
Collateral Id Pull down on the lookup field and select an existing collateral record for
the application. Only collaterals created for the loan borrower will be
displayed. In the case of group loans, all existing collaterals for all group
members will be displayed for selection. Since collaterals bear the
customer number in its Id, it is easy to identify which group member has
what collateral record.
Group Application Details

If the application is for group loans, then the Group Application Details tab is activated and its multi-
value set of fields are auto-populated by the system as follows.
Group Member The system populates this field with the customer number
of each group member
Amount Requested The system divides the amount requested by the number
of group members evenly and allows changes as may be
necessary. At all times, the system ensures that the total
amount requested tallies with the individual group member
amounts.
Term Requested The system defaults the term requested for each member
of the group and allows changes as may be necessary.
Instalment Based on amount requested and repayment term, the

system calculates the instalment amount for each member
of the group and defaults it on this field.
Authorisation of records
Once the direct loan input record is committed successfully, the record is held in the unauthorised
records file waiting to be authorised. Unauthorised records can be accessed through the Pending
records enquiry on the AA Loans main page
Live arrangements
Upon successful authorisation of the Direct Loan Input records, arrangements are automatically
generated in InclusiveBankingSuite and can be viewed in the AA Loans enquiry. Any of the filter
options can be used to narrow down the display of live arrangements.
When launched, the enquiry displays results as shown below in a composite screen.
This icon leads to the single customer view where all the Customer information may be viewed.
This icon displays the arrangement overview screen for more information about the loan.
Click on this icon to access other loan operations e.g. Loan disbursement, Loan repayment etc.
Click on this icon to view the loan repayment history schedule.
View arrangement record

Arrangements may be viewed or amended by drilling down from the arrangement overview screen
and executing the relevant update activities. For more information, please refer to the AA Lending
User guide.
To view the arrangement screen, drill down on the display icon as highlighted below;
The arrangement screen will appear as follows;
Arrangement
Product The Loan Product is displayed.
Currency The currency of the product is displayed.
Customer The Customer number of the borrower is displayed.
Effective date The Contract agreement date is displayed.
Note: Arrangement fields are driven by the setup of each product condition for the product in use. If
default values are configured at the product level, such default values are populated on the
arrangement screen and may be enabled for amendment if the product set up allows for such default
values to be negotiated. If set as non-negotiable, default values/ other field are disabled for input/
amendments.
Customer, Officers, Limit, Account Tabs
Customer The Customer number of the borrower is defaulted here as entered in the
new arrangement screen.
Primary officer Enter the account officer responsible of the relationship with the
borrower.
Limit Ref Enter the Limit reference defined for the product. Leave as Null if Limits
are in use for the product.
Limit Serial Enter the Limit reference serial number as defined for the product. Leave
as Null if Limits are in use for the product.
Account Title Account title as defined in the Account product condition.
Account Name As defined in Account product condition
Account Number Account number assigned to this arrangement by the system.
Account Mnemonic An alternate key which can be used to reference the account may be
entered here.
Term, Amount and Interest Tabs
Amount Enter the Loan Amount as requested. The amount entered here is
validated against Minimum and Maximum parameters defined in the
Term Amount Product condition.
Term Enter the period of time by which the amount must be repaid followed by
either Days (D), Weeks(W), Months(M) or Years(Y)
Maturity Date The date on which the committed loan amount is to be fully repaid based
on TERM and arrangement start. When a new arrangement is input
maturity date is calculated for the TERM from arrangement start date and
defaulted here.
Loan Purpose Select the Loan purposes from the lookup list.
Loan purpose codes are maintained in
General Menu>>Administrator>>System Tables>>Loan purpose
Source of Funds Select the Fund ID from the lookup list.

Source of Fund codes are maintained in
General Menu>>Administrator>>System Tables>>Source of Funds.
Charges and Charge Override Tabs
All the fees defined for the product in use are defaulted on the arrangement screen. Each of the fees
may or may not be available for amendment based on the product settings. If overriding of charges
is allowed for the product, Charge override fields will be triggered when the record is validated for
the calculated charges to be waived or negotiated.
Charge The charges applicable to the Loan as defined in the product.
Amount The calculated charge amount based on charge calculation rules defined
in the product, or the fixed fee amount applicable.
New Amount Enter the new charge amount negotiated with the Customer. Enter Zero
“0” to waive all the charges
Reason Provide the reason for the new charges if required.
Repayment Schedule Tab
Type Select the payment type from the lookup list. Payment types are defined
under the following main categories.
1. Constant – results in equal repayments. This is used for ‘Annuity’
arrangements and requires both a Term Amount and Interest property
to be specified.
2. Linear – the Term Amount repayment remains fixed over the lifetime of
the arrangement. Optional properties such as Interest, Charge, and
Tax may be included. The actual amounts calculated by these
properties will be added to the fixed Term Amount repayment.
3. Actual – is used for repayment of calculated property classes (i.e.
Interest, Charge, and Tax) and will be determined on each payment
schedule date.
4. Progressive – On choosing this type, a progressive percentage should
be defined in the field PROG.PAY.PERC. System will calculate an
amount which will be progressing by the rate specified in
PROG.PAY.PERC. Exactly same as CONSTANT type when
PROG.PAY.PERC is defined as 0. Optionally user routine could be
attached for this type.
5. Other – indicates that a user routine will calculate the repayment
amounts.
6. For disbursements, select Disbursement % or Disbursement Amount
Payment types are defined in Product Parameters>>Core Product
Builder>>Additional Settings>>Payments.
Frequency This field indicates the frequency at which the payments will be made due. This
may be defined using the calendar utility accessed through the frequency icon.
Property For each Payment type specify the Properties with amounts to be paid.
Prop % Define a percentage in the range of 0 to 100 that would be applied on the
outstanding balances and made due. Only the percentage of the amount would
be issued in the bill and made due. The remaining amount would remain on
their respective balances and any further calculation would be based on this
balance.
Property % is only allowed for ACCOUNT and INTEREST properties.
The payment type should be belong to CALCULATED type with the
CALC.TYPE set as ACTUAL.
Start Indicate the actual payment start date. If Start date is mentioned then the
payment frequency if specified is applied on the start date. Else it is defaulted
from the Base Date.
Amount There can be two amounts for each payment definition; Calculated Amount and
Actual Amount. An actual amount can be entered to override the calculated
amount or manual payments. When adhoc payments are defined, the actual
amount for each payment date needs to be defined. For Disbursement
Schedule (Account - Pay), the field is mandatory and sum of the future
schedules should sum up to the Loan amount.
Settlement Instructions Tab
Payment type The Payment types defined in the payment schedule.
Active Select Yes or No. This field may be used as a switch to turn off the
Settlement instruction temporarily without having the need to clear or
delete the field contents. If the field is set to NO, then it means the
instructions are not active.
Account Contains the Account number from where funds are to be debited and
credited against this payment type. Multiple accounts could be defined
here and the rules of funding is governed by the PAYIN.AC.DB.RULE
field.
In InclusiveBanking, the first Customer’s account of the category defined
in the product is defaulted on this field.
Rule Indicate the manner in which system should utilise the funds available in
the repayment Account during settlement process.
1) FULL: System debits the repayment account to the extent of the
amount due irrespective of whether or not the funds are available in
the specified account.
2) PARTIAL: System debits the repayment Account only to the extent
of funds available.
3) NONE: System would not debit the repayment if funds are not fully
available to settle the dues.
Loan Disbursement
In AA, Loans may be disbursed automatically upon authorisation, if the Schedule and settlement
conditions are set as so, or manually through Cash, Cheque or Account transfer. Loans can be
disbursed individually for each customer or in bulk for borrowers belonging to the same Customer
Group.
Individual Loan Disbursement
Access
RBHP>>Teller>>Loan Operations>>Disbursement
Procedure
1. On the Loan to be disbursed, click on the icon.

2. Select Cash/ Cheque or Account transfer disbursement.
3. Enter required data as shown below.
4. Commit the record and the loan is now disbursed.
5. Authorise the records using the Unauthorised FT/TT operations depending on the set up at
your institution.
Note: Some institutions may not require authorisation of Teller transactions
Disbursement by Cash
Customer The Customer number of the Borrower is defaulted here.
Loan Account The Account number where the loan asset is maintained. This account is
automatically opened by the system when the loan is created using the
category code of the product.
Disbursement The currency of the Loan Account is defaulted here.

Currency
LCY Disbursement The loan amount available for disbursement is defaulted on this filed and
Amount may be amended if only part of the loan is to be disbursed.
Value Date Enter the disbursement date.
Narrative Enter any free format narration here if applicable.
Disbursement by Cheque
Loan Currency The Account number where the loan asset is maintained. This account is
Cheque Amount Enter the Amount to be disbursed.
Cheque Currency The currency of the Disbursement amount.
Value Date Enter the disbursement date.
Payable to Enter the name of the Payee on this field.
Cheque Number Enter the number as recorded on the cheque form.
Disbursement by Account Transfer
category code defined for the product.
Credit Account This is the account to be credited with the proceeds of the loan. All of the
Customer’s accounts (except Loan accounts) are displayed on the
lookup list.
Debit Amount Enter the Amount to be disbursed.
Debit Value Date The value date of the disbursement.
Treasury Rate The treasury rate as defined in the currency table is defaulted on this
field.
Customer Rate Where disbursement is to be done into a foreign currency account,

foreign currency conversion will take place. This field identifies the final
exchange rate applied to the transaction. This Rate will be derived from
the addition of the Treasury Rate and the Customer Spread. In case the
Treasury Rate and Customer Rate is null then allows to input exchange
rate in Customer Rate. If Customer rate is entered, then Customer
spread will be calculated and defaulted with the difference between
Treasury rate and Customer Rate.
Customer Spread Identifies the Customer's Exchange Spread to be applied for this
transaction. The Customer Spread defined in this field will be applied to
the Treasury (buy/sell) Rate to generate the final Rate of the transaction,
i.e. the exchange rate which is applicable to the Transaction. Input

allowed only when the Customer Rate is not entered.
Group Disbursement
In the InclusiveBankingSuite, we provide the functionality whereby loans belonging to members of
the same group can be disbursed from a single screen.
Access
RBHP>>Teller>>Operations>>Group Disbursement
The group disbursement screen is auto-launched when Group disbursement option is selected.
Group ID and Account officer may be used to filter the display of the enquiry.
The Enquiry displays a composite screen as shown below providing the list of groups with loans
available for disbursement as per the filters applied.
Procedure
1. Click on the icon to access the input screen

2. Review the defaulted values and amend where necessary
3. Commit the record
4. Authorise the record using the Unauthorised Group disbursements version
5. Review the results of individual postings using the Completed Disbursements version
Group disbursement screen
Group ID The group ID where the borrowers belong to.
Group Name The name of the group where the borrowers belong to.
Select Yes or No. Only rows marked as yes for disburse will
Disburse
be processed.
Disb Account Select the Account to be credited with the proceeds of the loan. The
system provides a list of all accounts of the customer of the category
defined in the Group Bulk Payments parameter table. An internal account
may also be entered on this field provided that the category code is
defined in the same table.
Please refer to the Group Management user guide for more information.
Amount Enter the amount disbursed. The screen defaults ‘undisbursed’

commitment balances for every loan per member. Enter Zero “0” to skip
any loans of the customer not to be disbursed yet or a different amount
for partial disbursement.
Total Amount On verifying the record, the Total amount of loans to be processed is
defaulted.
Completed disbursements
This enquiry displays the results after processing the Bulk FT records by OFS. Applicable statuses
are;
1. Processed Successfully
2. Partially processed
3. Failed
Click on the icon to see the status of individual FT records and correct any that failed to
process. The Group Disbursement Details enquiry will display results as follows;
The status of each FT is shown on the enquiry. In case of failed transactions, click on the
icon to correct the problematic entries and commit the record to resubmit the FT.
Loan Repayment Operations

During the life of an arrangement, a number of repayment operations may take place. These include;
1. Regular repayment on the instalment due date
2. Prepayment to reduce the outstanding loan amount ( principal decrease)
3. Advance payment where the funds are to be applied on upcoming instalments (Credit
arrangements)
4. Payoff i.e. pre-closure of arrangements before final maturity date.
Repayment operations can be performed separately for individual Customers or in Bulk for members
of the same Group.
Individual repayment operations
Access
RBHP>>Teller>>Loan Operations>>Repayment
Procedure
1. On the List of Loans, click on the icon to navigate to the Loan operations dashboard.
2. Select the Repayment operation to be performed.
3. Enter the repayment amount and review the defaulted field values.
4. Commit the record.
5. Authorise the record using the Unauthorised FT or TT records version.
Note: For all the repayments operations types, the versions are similar for each payment mode and
the fields for input are described once in this guide. The only differentiating factor is the
TELLER.TRANSACTION or FT.TXN.TYPE.CONDITION codes mapped on the version and linked
to AA activities in ACTIVITY MAPPING property class. Please refer to the AA Lending user guide
for more information on activity mapping.
Repayment by Cash
Customer The Customer whom the loan that is to be repaid belongs to.
Loan account The Loan account to be credited with the repayment amount.
Deposit Currency The currency of the repayment funds.
LCY Deposit Amount Enter the repayment amount. If in excess of the due amount, the system
will apply the balances as per the remainder rules defined in the Payment
rules conditions of the product.
Value date The value date of the transaction is defaulted.
Narrative Enter any free format narrative if required.
Repayment by Cheque
Customer The Customer whom the loan that is to be repaid belongs to.
Loan account The Loan account to be credited with the repayment amount.
Currency Enter the currency of the repayment funds.
Value Date Enter the value date of the transaction in this field.
Narrative Any free format narrative may be entered on this field in required.
Drawer Cheque No Enter the number of the cheque.
Drawer Account No Enter the account number of the cheque.
Drawer Branch Code Enter the branch code of the cheque.
Drawer Name Enter the name of the drawer of the cheque.
Repayment by Account transfer
Debit Account This is the account to be debited with the repayment funds. All of the
Customer’s accounts (except Loan accounts) are displayed on the
lookup list.
Loan Account The Account number where the loan asset is maintained. The repayment
will reduce the loan directly in the loan account. At any time, an Account
statement can be extracted to view the movement of funds in and out of
the Loan account.
Credit Amount Enter the repayment amount.
Debit Value date The value date of the transaction.
Treasury rate The treasury rate as defined in the currency table is defaulted on this
field.
Customer Rate Where disbursement is to be done into a foreign currency account,

foreign currency conversion will take place. This field identifies the final
exchange rate applied to the transaction. This Rate will be derived from
the addition of the Treasury Rate and the Customer Spread. In case the
Treasury Rate and Customer Rate is null then allows to input exchange
rate in Customer Rate. If Customer rate is entered, then Customer
spread will be calculated and defaulted with the difference between
Treasury rate and Customer Rate.
Customer spread Identifies the Customer's Exchange Spread to be applied for this
transaction. The Customer Spread defined in this field will be applied to
the Treasury (buy/sell) Rate to generate the final Rate of the transaction,
i.e. the exchange rate which is applicable to the Transaction. Input

allowed only when the Customer Rate is not entered.
Group Collections
In the InclusiveBankingSuite we provide functionality for processing group repayments from a single
screen. This functionality may be used where group repayments are to be captured directly into the
system manually. The group collections screen is controlled by the configuration defined in the Group
Bulk Payments Parameters.
Group Bulk Payments Parameters

Using this table, parameters may be defined for various repayment types to be supported by the
Group collections screen i.e. Regular payment, Savings, Principal decrease, Credit arrangement
and Payoff.
Access
RBHP>>System Parameters>>Customer Tables>>Group Tables>>Group Bulk Payments
Parameters
Bulk Type Enter GCS (Group Collection Screen) for repayments.
Default FT OFS FUNDS.TRANSFER,EM.GCS.BULK.OFS is the default version used to

Version process the individual FT payments using OFS.
Default Process Value Select Yes or No as the default process value for line items in the Group
collection sheet. Only items marked as Yes are processed when the
Group collection is authorised. If Yes is set as the default, line items to
be skipped will need to be marked as No at deal processing and vice

versa.
Payment Type Enter the payment type to be configured in the current multi-value set of
fields. All the payment types defined in this table will be available in a
lookup list of payment type in the Group collection sheet.
Transaction Type Enter the FT.TXN.TYPE.CONDITION code to be used for this payment
type.
Default Payment Type If Yes is selected, the repayment type defined here will be auto populated
Name? for every member of the group. If No is selected, This repayment type will
not be displayed but will be available in the lookup list for selection.
Allowed Credit Enter valid category codes here. Customers’ accounts of the category
Categories codes defined here will be filtered and made available on a lookup list for
selection as the repayment Account, i.e. the Account to be credited with
the repayment funds.
Default Credit Select one of the options available.

Account?
1. Yes – The first Account of the Customer on the allowed Credit
categories will be defaulted as the Credit Account.
2. No - Credit Account will not be defaulted but will be selected from the
lookup list.
3. Loan – Select this option for Loan repayment payment type so that
all the Loan accounts of the customers are displayed on the Screen.
Default Loan If Yes is selected, the total amount due will be prepopulated on the
Repayment Amount? amount field. You only need to compare the amount with the actual
repayment and amend according if the customer paid a different amount.
If No is selected, amounts due will not be prepopulated.
FT OFS Version If your institution uses a different version other than the Default OFS
version defined by Temenos, enter the FT version here.
Group Collections Screen

This is the screen used to capture group repayments.
Access
RBHP>>Teller>>Loan Operations>>Group Collection
Procedure
1. On the group Collections Composite screen, click on the icon to access to the
Collection screen.
2. Enter the relevant values on the fields described below.
3. Commit the record and authorise through the Unauthorised Group Collections enquiry.
Group ID Enter the Group ID for whom repayments to the loans are to be
processed. All members of the group will be displayed on the screen.
Group Name Displays the name of the Group.
Processing Date Enter the processing date of the payment.
Process Select No to skip a particular Customer. Line items marked as Yes will
be validated for processing.
Customer No. The Customer ID of the group member.
Customer full name The full name of the group member.
Attendance Select member’s attendance status from the pop up list
Payment Type The payment type as defined in the Group Bulk Payments parameters
table. Expand the sub-value field to add more payment items if
applicable.
Payment Account The Loan account or Savings account to be Credited with the repayment
funds.
Amount The amount paid by the customer. For Loan, the total amount due is
defaulted here so no input is required if the customer pays full amount.
Group Dr Acc The Group Account is defaulted here. In the InclusiveBankingSuite, each
group should have a linked Group Account where the Bulk Group
Repayment is deposited. An Internal (Wash) Account may also be used
as a Group Account. Group collections are then processed against the
deposit in the group account. Please refer to the Group Management
user guide for more information on Groups Accounts.
Control Total Enter the total Deposit Amount made by the group, as held in the group
account, to validate against the line items.
Payment Ref No. Enter the Payment Reference Number is applicable.
After the Group collection is authorised;

1. Review the processed records as shown in the Completed Group Collections screen.
Hint: The TSM service should be running in AUTO mode for the records to be processed.
2. In case of the transaction failing, click on the icon to access the Group Collection details
screen and review failed transactions.
3. Click on the icon to correct the errors and resubmit the FT record.
Loan Maintenance
A number of loan maintenance activities may be performed directly on the arrangement through the
New Activities link on the arrangement overview screen. Activities are actions performed on loan
arrangements and allow you to make modifications to the various elements of existing arrangements.
Examples of other typical modifications:
 A change in Interest rate
 Adjusting a bill amount
 Close an arrangement
 Term and Amount changes (InclusiveBankingSuite functionality described in Top-up and
Reschedule section below)
Procedure
1. On the Arrangement Overview screen, click on the New Activity link
2. Select the amendment action to be performed on the arrangement as shown below
3. Enter the relevant data and remember to have the record authorized for the change to
become ‘live’.
Loan Top-up and Reschedule

In InclusiveBankingSuite, Principal increase (Top-Up) and change in loan duration activities may
be processed using the Direct Loan input screen as described below.
Access
All in One RBHP >> AA Loans >> Loans >> New Loans
Procedure
1. On the New Loan screen, enter the customer details
2. Select the loan action e.g. Top-up or reschedule
3. Enter all the required data on the fields as described below
4. Commit the record and authorise
Top-Up and Reschedule Input Screen
Loan Input ID The system generates the next available reference number, the format is
DL (application code) followed by the Julian date (279 th day of the year
2016) followed by a 5-digit sequential number.
Input Date Enter the transaction value date
Customer Type Indicate whether the record is being created for an individual or a group.
The two Customer Type options are mutually exclusive. If Group is
selected, then the system hides Customer Id and if Individual is selected,
the system hides Group Id. Similarly, the tab “Group Application Details”
will be hidden if Individual customer type is selected.
Customer As individual was selected in the Customer Type field (above) the system
requires you to enter the Customer ID and on entering the code, the
customer’s last name displays as enrichment characters to the field.
Validate that you are working with the correct customer record.
Asset Class This is a no-input information-only field indicating the worst classification
of the customer from all his or her existing loans.
Loan Action Select Top-up to indicate a principal increase or Reschedule to indicate

a change in the term of the loan.
For Arrangement Select the loan arrangement to be amended from the look up list. The
system lists only the loans that were previously created using Direct Loan
Input. Loans created using Loan Origination are to be amended using a
similar input screen in the Loan origination Module.
Loan Details
Loan Product The product code of the Loan selected is displayed.
Amount requested Enter the top-up amount that the customer wishes to borrow.
Term Requested Enter the new repayment term requested, if any. E.g. If the initial loan
was payable in 6M and the customer requests for a 3M extension with
the Top-up, enter 9M on this field. Leave the field as blank if no Term
change is requested.
Payment Frequency The current repayment frequency of the loan selected is populated.
Currency The currency of the loan selected is defaulted
Interest Rate The interest rate populates from the product.
Instalment Amount The system calculates after the Top-up and/or reschedule and displays
the repayment amount for information purposes.
Source of Funds Select the source of funds from the lookup table
Loan Purpose Select the loan purpose from the lookup table.
Loan Reason This is a free-format input field for you to capture any other relevant
information.
Notes Capture any other relevant information in this area.
GUARANTOR INPUT Guarantor management for top-up and reschedule operations will be
supported in future releases of InclusiveBankingSuite.
Loan Payoff and Closure

The AA Payoff function allows for total early closure of loans. A Payoff can be requested at any point
during the life of the loan arrangement. The effective date can be either today’s system date or can
be future dated. A Payoff statement is produced for information for the customer. An early redemption
fee can be applied automatically if required by your institution. If any overpayments had been made
previously to the arrangement, these will be taken into account for the calculation of the Payoff
amount.
Procedure
1. In the Arrangement Overview screen, click on the Request Payoff icon
2. The simulation runner starts the Payoff mechanism to calculate the dues for Outstanding Capital,
Interest and any Charges linked to the loan.
3. Once the simulation is executed successfully, review the payoff bill generated to inform the
Customer the final amount to be paid.
4. Capture the Payoff Amount using the Payoff Loan operation version described in the
Repayments operations section above.
5. The payoff bill is marked as settled and the loan is account is updated to “pending closure” status
to be closed based on the parameters defined in the Closure Conditions of the product.
6. To close the account manually, click on the New Activity icon in the Arrangement Overview
screen. Select the Execute icon on the Close arrangement activity.
7. Accept the override, commit the record and have it approved.
8. The Loan Account is marked as closed. Account closure will be processed during the next Close
of Business batch job.
Loan Write off

Loans can be written off using Balance Maintenance Property activities available on the Arrangement
Overview screen.
Procedure
1. Click on the New Activity link on the arrangement overview screen
2. Select Write off arrangement activity and click on the Execute icon.
3. Enter YES in the field “Write off Bill” for all outstanding bills ( In the bill adjustment tab) and
balances ( In the balance adjustment tab)
4. Commit the record and remember to have the record authorised.
5. The loan is written off against the PL category/Internal account defined in the accounting
allocation rules.
Please refer to the AA Lending user guide for more information on the AC.ALLOCATION.RULE
table.
Loans Written off enquiry

This list provides details of loans written off loans e.g. Amount written off, arrears to date, days in
arrears and provision amount.
Access
Role based menu>>All in One RBHP>>Loans AA>> Arrears/ Provisioning>>Loans Written Off
Screen
A screen, like the one displayed below is shown, allowing you to filter the records for on screen
enquiry.
When the enquiry displays, it will appear like the screen shown below
Write 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 is auto generated as (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.
Procedure
1. Set up WOF loan recovery parameters
2. Set up Account product for contingency accounts
3. Record recovery transactions in Cash, Cheque or Account transfers
WOF Loan Recovery Parameters

This is a parameter file used to maintain written off loans recovery parameters. The automated
recovery account opening, balances transfers and recoveries recording processes refers to this
parameter table.
Access
All in One Page > Product Parameters > AA Products > AA provisioning and WOF parameters
Recovery Category This is the Profit and Loss code that is credited with recovery funds
Contingency Customer This is the Category code used to open the customer contingent
Category account where written off items are maintained.
The category code must fall within the contingent category range
defined on ACCOUNT.PARAMETERS. For contingent accounts to be
automatically opened, an account product for recovery accounts should
be set up using the category code defined here.
Please refer to the Accounts Manual on contingency accounts and
account product set up
Contingency Internal This is the Category code used to open the contingent control account
Category for contra entries
Contingent Account Parameter used to determine whether Contingent control accounts are
Level to be maintained at customer level or branch level. If customer level is
selected, the next field, customer control account category becomes
mandatory. If Branch level is selected, the contingent internal category
becomes mandatory.
Customer Control The category code under which customer contingent control accounts
Account Category are to be opened
Recovery order Define here the order in which recovery funds are to be applied on
written off balances. Balances are maintained property wise on the
WOF loan contingent account as contained in the balance maintenance
arrangement condition at the time of write off.
Contingency Account opening process flow

1. The process is initiated when a loan write off activity is authorized and the arrangement is set to
PENDING.CLOSURE or CLOSE. If the status remains as CURRENT then the loan is not
completely written off and the subsequent steps will fail.
2. The AA arrangement and underlying account are closed by the service
BNK/EM.WOF.PROCESS. It takes 2 Close of Businesses (COB) to close the underlying
Account.
3. A loan recovery account (Contingency Account) is opened in the loan currency using the WOF
loan account as the alternate ID.
4. If not already present, a Control account in the 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
5. Details of failed record are displayed on the Unsuccessful WOF Recovery enquiry. The COB
process automatically checks for any failed records now corrected and retries to create the
recovery accounts.
6. The Loan account is debited with the written off amount and the contingency control account is
credited.
7. The OFS messages are stored in a work file EM.WOF.RECOVERY.WRK showing the results
and failure reasons in any.
8. In addition to transferring the WOF balance to the recovery account as shown below.
WOF balances are stored on the Account property wise as contained in the balance maintenance
property as the time of write off.
Written Off Loan Recovery Transactions
Overview
The functions described below enable tellers to accept and record deposits made against written
off loans. Recovery payments can be made in Cash, Cheque or Account transfers.
Access
All in one page >> Teller>>Transactions>>Deposit into Written off loan
Procedure
1. Select the menu option
2. Click on the New Deal button
3. Enter the written off loan account number or select the contingency account number from
drop down list.
4. Select the currency deposited
5. Enter the repayment amount and commit the record
6. The system will produce a Cash Deposit Advice
Note: These transaction do NOT require authorization.
Customer Details On entering the Credit Account, the system populates this field with the
Customer number
Account Balance On entering the Credit Account, the system displays the Cleared or
Available Balance on the Account
Signing instructions In the event of signing instructions being captured for the account, the
flag “Y” displays here
Recovery Account Enter the Contingent Account number in this field. The system checks
that the account is linked to a written off loan and displays an error if a
not. The system uses this account to pass the secondary entry between
the customer contingency account and contingent control account. See
note below for further details.
Credit Value Date Enter the value date or select from the pop up calendar. This defines
the date when the entry is to be given value for interest purposes.
Credit Their Ref Enter the transaction reference as will be recorded on the credit
account statement.
Total Credit Amount The system displays the Total Credit Amount, but only after the record
has been authorised.
Credit Account The system display the credit account to be credited by the primary FT
as parameterized in WOF Loan Parameters table. See Note below on
the Primary and Secondary FT entries.
Debit Information The system displays the details of the debit account customer, but only
Customer Details after the record has been authorised.
Debit Account The system populates the cash account number of the teller that is
processing the transaction but only after the deposit currency is
entered.
Account Type The system display the debit account type, but only after the record has
been authorised.
Debit Currency Enter the transaction currency
Debit Amount Enter the amount being deposited to the Written Off Account.
Note. The system check against overpayments. If the amount
deposited is more than the balance on the account, an error will be
displayed.
Dr Value Date The system populates the value date with the current system date.
Debit their Ref Enter the transactions reference as will be recorded on the debit
account statement
Orders by Enter the details if required
Profit Center Enter the code, you may select this from the look up table. This table is
maintained in …>>System Parameters >>General >>Account officer
Total Debit Amount The system displays the Total Debit Amount, but only after the record
Customer Details On entering the Credit Account, the system populates this field with the
Customer number
Recovery Account On entering the Credit Account, the system displays the Cleared or
Balance Available Balance on the Account
Signing instructions In the event of signing instructions being captured for the account, the
flag “Y” displays here
Recovery Account Enter the Contingent Account number in this field. The system checks
that the account is linked to a written off loan and displays an error if a
not. The system uses this account to pass the secondary entry between
the customer contingency account and contingent control account. See
note below for further details.
Credit Value Date Enter the value date or select from the pop up calendar. This defines
the date when the entry is to be given value for interest purposes.
Credit Their Ref Enter the transaction reference as will be recorded on the credit
account statement.
Total Credit Amount The system displays the Total Credit Amount, but only after the record
Credit Account The system display the credit account to be credited by the primary FT
as parameterized in WOF Loan Parameters table. See Note below on
the Primary and Secondary FT entries.
Debit Information The system displays the details of the debit account customer, but only
Customer Details after the record has been authorised.
Debit Account The Nostro Account Number is populated in this no input field
Account Type The system display the debit account type, but only after the record has
been authorised.
Debit Currency Enter the transaction currency
Debit Amount Enter the amount being deposited to the Written Off Account.
Note. The system check against overpayments. If the amount
deposited is more than the balance on the account, an error will be
displayed.
Dr Value Date The system populates the value date with the current system date.
Debit their Ref Enter the transactions reference as will be recorded on the debit
account statement
Orders by Enter the details if required
Profit Center Enter the code, you may select this from the look up table. This table is
maintained in …System Parameters >>General >>Account officer
Total Debit Amount The system displays the Total Debit Amount, but only after the record
Drawer Cheque No Enter the number as recorded on the cheque form
Drawer Account No Enter the account number as recorded on the cheque form
Drawer Branch Code Enter the branch (sort) code as recorded on the cheque form
Note: The transaction is processed as follows;

From the Input Version, the Bad debt recovered PL category is credited and the Cash Account/
Nostro Account for cash deposits/Customer account for account transfers, is debited. This is the
primary FT transaction.
OFS then in turn, raises two more FT entries: The Contingent Control Account is debited and the
Customer Contingent Account is credited. This is the secondary FT transactions. ID of the primary
FT is stored on the PRIMARY.DETAILS field of the secondary FT and vice versa.
In the case of recoveries in Local Currency against Foreign Currency Loans, the system accepts
and posts the primary FT in the local currency deposited, while the secondary FT is posted with the
Foreign Currency equivalent. The system uses the middle revaluation rate as maintained in the
CURRENCY table for conversion.
When the loan is fully recovered and the balance on the account is equal to zero, the customer
contingency account is set to pending closure for closure during close of business. If contingency
control accounts are maintained at customer level, and no other write off loan exists for the
customer, the contingency control account is also closed.
Reversal procedure
1. Select the Reversal of transaction to written off Loan menu option
2. Enter the FT ID of the transaction to be reversed as shown below
3. Click on the reversal marker
4. If the account is already closed, as message will be displayed as below
5. To restore the account from history, select Account history restore on the menu, enter the
account to be restored and hit enter. Under More Actions, select History restore and commit
the record.
6. Upon authorization, the Account is restored back to the live file for reversal entries to be
posted.
WOF Loan Recovered enquiry

This enquiry provides details of loans written off amounts recovered to date.
Access
All in One RBHP>>Loans AA>> Arrears/ Provisioning>> WOF Loans Recovered
Click on the view icon to view the recovery account statement with the transactional details of
the recovery progress made.
WOF Loan Customers with Cr Balances

This enquiry provides details of Customers with Written off Loans while carrying Credit balances in
other accounts.
Access
All in One RBHP>>Loans AA>> Arrears/ Provisioning>> WOF Loan Customers with Cr Balances
Note: The system tracks all user initiated activates in WOF Loans Customers’ accounts and
generates an override message alerting the user of the same.
Notes
Use this page to record your own notes.

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What are the main components of the lending product configuration workflow?

What are the main components of the lending product configuration workflow?

What are shared conditions and how are they used?

What are shared conditions and how are they used?

InclusiveBanking Lending

Product Builder and Loan Operations

Information in this document is subject to change without notice.

© 2015 Temenos Headquarters SA - all rights reserved.

Charges and Charge Override Tabs......................................................................................... 66

Author Version Date Action

Esther Muniu 1.0 9 March 2016 Initiated

Lukasz Czechowicz 1.1 21 March 2016 Reviewed

Lynn Petersen 2.0 29 March 2016 Published

Esther Muniu 2.1 27 March 2017 Updated

Lynn Petersen 3.0 7 April 2017 Published

Henry Omotayo 3.1 05 June 2017 Updated

Esther Muniu 3.2 25 June 2018 Updated

05 June 2017 – Updated for progressive release of initial deposit.

25 June 2018 – Updated for the latest updates (R16.4/R17)

InclusiveBanking Product Builder

1. Creation of Product Groups

 Configuration of Child Product Conditions for identified properties

The main tables used for product building are;

Product configuration workflow

Create Define Create

The Inheritance Group Details:

Field name Description

Start Date The start date of this group.

The Shared Conditions:

Field name Description

Property Class Property class name as released by Temenos

Property Name Property class instance as defined by InclusiveBanking team

Condition Group Name A brief description of the shared condition group

Shared conditions pre-defined in the InclusiveBankingSuite

Basic Shared Conditions Details

Field name Description

Inheritance Group This is the ID of the inheritance group. We defined EmLoans.

Field name Description

Name Specify the shared conditions name.

Penalty Interest Parameters

Field name Description

Calculate Define whether penalty interest is to be calculated on arrear repayments.

Selection Select an existing penalty condition, or create a new condition.

Field name Description

Day Basis Define the interest day basis. Options are:

Field name Description

Field name Description

Margin Define the margin to be added/deducted/multiplied to the floating rate if

Negotiable Indicate whether this rate may be negotiated at arrangement creation

Field name Description

Field name Description

Automatic Specify if repayments are to be collected from a designated account on

Automatic Negotiable Indicate whether automatic repayments may be negotiated on

the system checks during Close of Business and collects additional

Field name Description

Automatic Charges Indicate if charges are to be collected automatically for loan

Field name Description

Field name Description

Field name Description