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www.jethroltd.com
Jethro LtdLD LOANS AND DEPOSITS
Knowledge Impact Center
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The Loans & Deposit module is used for:
- Commercial clients - Retail clients
The system can handle complicated repaymentschedules and
multiple interest payments.
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Overview Of Module
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Fully integrated with Credit Risk (Limits)
Standard Settlement Instructions automaticallydefault in
(AGENCY)
Advices automatically sent through DeliveryModule
This a Contract application and will useCUSTOMER and ACCOUNT
recordsestablished.
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Overview Of Module
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Discounted
Loan or Contract
Drawdown Account Liquidation Account
Call/Notice (No fixed Maturity Period) Liquidation Mode
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Vocabulary
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5TheBasicProduct
TheBasicProduct
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Deposits
Loans
Loan Commitments
Sundry Deposits (zero Interest Deposit)
Sundry Loans (zero Interest Deposit)
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Basic Products
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Basic Product Features
Contracts can be in any currency
Credit Line may be in a currency different fromthe contract
currency
Interest rate can be fixed or floating
Interest bearing and discounted
Fixed maturity or Call/Notice
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Basic Product - Term (Tenor)
FIXED:
Maturity date is a specific date It can be entered as a number
of days (D),
weeks (W) or months (M) from the valuedate.
CALL/NOTICE:Maturity date is a number in the Range
0 to 9990 = Call1 to 999 = Number of Days Notice.
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Basic Product - Amendments
Can only be made to Current contracts
Changes to:PrincipalInterest RateSpreadCommission amounts
Actioned via Fields 127 - 136
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Basic Product - Linked to Limits
Deposits
- No Limit is required.- Updates the overall net position for
Customer
Loans- Limit is updated at validation.- If a loan limit is
established on a revolving basis thelimit will be reinstated as
principal repayments arereceived.
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Loans and Deposits Related Files.
INTEREST.BASISDefaults from CURRENCY record, e.g.
A - 360/360 B - 366/360E - 366/365 F - 360/365S - Special
ConditionsIn this case the amount of interest is
entered in TOTAL.INTEREST.AMTBASIC.RATE.TEXTBASIC.INTEREST &
PERIODIC.INTEREST
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Interest Types
Fixed
Floating
Periodic Automatic
Periodic Manual
Periodic Straight
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Fixed Interest Rate
Interest rate fixed for life of contract. Fixed rate valid for
discounted loans. Revision of schedules may be defined. Mandatory
for Commitments. Amended using NEW.INT.RATE field.
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Floating Interest Rate
Interest rate linked to valid key fromBASIC.RATE.TEXT and
interest rate fromBASIC.INTEREST
Input spread
When rate changes contracts recalculatedautomatically
Not valid for Discounted contracts
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TablesTables
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Tables
CATEGORYProduct range = 21001 - 21099
21001 - 21049 Deposit21045 - 21049 Sundry Deposit21050 - 21074
Loan21090 - 21094 Sundry Receivable21095 - 21099 Commitment
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Parameter Tables
PROFIT AND LOSS User defines these parameters in files
BASIC.RATE.TEXT and interest rate from
Kabarore EBU Basic Rate Text SEE
KEY...............
1------------------------------------------------------------------------------
1. 1 GB DESCRIPTION. CBL PENALITY1. 2 FR DESCRIPTION. Pnalit Pt
CBL11 CURR.NO........... 3
BASIC.INTERESTKabarore EBU Basic Interest SEE
KEY............... 1 RWF 02 DEC 2013 CBL PENALITY Rwanda
Franc------------------------------------------------------------------------------
1 INTEREST.RATE..... 60.004 CURR.NO........... 15. 1
INPUTTER....... 49796_SYSTEM026. 1 DATE.TIME...... 14 DEC 13
13:01
7 AUTHORISER........ 49796_SYSTEM028 CO.CODE...........
RW-001-0001 GLOBAL MODEL BUILD9 DEPT.CODE......... 1
Implementation
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Parameter Tables
LMM.INSTALL.CONDS Defines data/cycle on which interest should
be
accrued
LMM.CHARGE.CONDITIONS Defines the charging conditions.
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Parameter Tables (cont)
LD.TXN.TYPE.CONDITION
To define sets of rules governing specific LDCATEGORY codes,
like minimum / maximumvalues for:-
Term of contract Draw down Amount Default interest rates etc
The input of a contract is validated against thevalues and
overrides are generated if exceeded.
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Special FeaturesSpecial Features
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Special Features
Flexible repayment schedules
Principal increases/decreases, including partialor early
redemptions
Deposit Rollovers
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Functionality Comparison
Call; Notice; Fixed Maturity Yes Yes
Manual Rollover Yes Yes
Auto-Rollover Yes No
Interest Schedules Frequency Yes
Principal Schedules No Yes
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MM LD
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Question
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THANK YOU
