Overview


This page helps you understand the process of setting up a loan facility in the Finvisage application. As part of this, you need to input the loan details and also setup the interest rate slabs on the New Loan Facility page. You can access this page by clicking the  menu icon on the Loan Facility page. 

 

Once the loan facility is set up, you can also add drawdowns to it. However, the sum of the amounts disbursed within all the drawdowns should be less than the loan facility amount.  

Steps to Create a New Loan Facility

1. On the Side Panel of Finvisage application, click Liability. 

    The menu is expanded displaying Loan Facility among others.

2. On the expanded menu, click Loan Facility. 

    

The Loan Facility page is displayed.


3. On the Loan Facility page, click the Menu icon at the right bottom of the page to view the + button, and then click it.                                                    

The New page is displayed with the loan fields.


4. On the New page, enter the loan details as per the instructions shown in the below table.


FieldInstruction
Facility TypeFrom this drop-down box, select the Loan Type choosing from Unsecured Loan, General Secured Loan, or Specific Charge Loan. 

Note: Filling this field is mandatory.
ROC Reference NumberIn this field, enter the ROC Reference Number.

Tip: The ROC Reference Number refers to the registered number with Registrar of companies.
EntityFrom this drop-down box, select the Legal Entity of the User's organization, which is booking the loan facility.

Note: Filling this field is mandatory.
CounterpartyFrom this drop-down box, select the Counter Party.

Tip: The counter party refers to the bank or financial institution, which the user is booking the facility. (The dropdown is based on Masters setup).
Note: Filling this field is mandatory.
Loan AccountIn this field, enter the  Loan Account Number.

Tip: The Loan Account Number  refers to the unique id provided by bank or financial institution referring to this facility. It needs to be setup within the Masters. 

Note: Filling this field is mandatory.
Operating Account

In this field, enter the Operating Account Number.

Tip: The Operating Account Number refers to the bank account of the user's organization. It will be used to pay back the principal and interest. It needs to be setup within the Masters . 

Note: Filling this field is mandatory.
Payment AccountFrom this drop-down box, select the Payment Account choosing from Loan Account, Through Account, or Counter Party Bank Account.

Tip: The Payment refers to the counterparty's bank account to which the payment shall be debited. It needs to be setup within the Masters. 

Note: Filling this field is mandatory.
Start date and End dateDefine the loan period using these calendar controls. 
Facility Amount In this field, enter the Facility Amount.

Tip: This refers to the total facility amount available to the client organization.

Note: Filling this field is mandatory. 
Total Security CoverIn this field, enter the Total security cover provided.
Note: For information on how to setup interest rate slabs, refer to Setting up Interest Rate Slabs below.
Coverage RatioIn this field, enter the Coverage Ratio.
Covenant Default Interest RateIn this field, enter the Covenant Default Interest Rate.

Tip: This refers to the defaulting rate for missing any covenant other than payment.
Note: Filling this field is mandatory.
Payment Default Interest RateIn this field, enter the Payment Default Interest Rate, if any.

Tip: This refers to the the penal interest rate for missing payment dates.
Principal Cash in TagFrom this drop-down box, select the Principal Cash in choosing from Interest Cash in or Principal Cash in options.

Note: Filling this field is mandatory.
Principal Cash out TagFrom this drop-down box, select the Principal Cash out choosing from Interest Cash out or Principal Cash out options. 

Note: Filling this field is mandatory.
Interest Cash out Tag

From this drop-down box, select the Interest Cash out choosing from Interest Cash out or Principal Cash out options.

Note: Filling this field is mandatory. 
Security Trustee In this field, enter the Name of the Security Trustee.
Security InformationIn this box, enter the Security Information.

Note: Filling this field is mandatory.


Setting up Interest Rate Slabs


You can setup interest rate slabs by entering the start date, end date, and type of slabs within the Finvisage system. Finvisage allows to set up both fixed and floating interest rates. Floating interest rates require benchmarks to be set up prior within the Masters section.


You can add the desired number of slabs by clicking on New Interest Rate Slab. Once done, the slab becomes editable and can be changed from the date of last actual interest payment, even while the loan facility is in effect. This allows users to manage negotiated rate changes within Finvisage.


In cases of multiple interest refixing periods, until all the all interest slabs are entered with data, don't click the Create button.


The following provides step-by-step instructions on how to setup interest rate slabs:


To setup interest rate slabs 

1. Click the New Interest Rate Slab button.

The Interest rate fields appear. See the image below.

Click on the image to view it large


Specifying all the below information is mandatory.


2. Select the Start Date and End Date.

3. From the Interest Type drop-down box, select the interest type choosing from Fixed or Floating.

4. Specify the Interest Rate Benchmark. 

5. Specify the Interest Rate Spread.

If you wish to make the interest fields disappear, click Remove.  


Finally, click the Create button at the bottom of New page.

The loan facility is created.


If you don't want to go ahead with creating the new loan facility and clear the already entered data, click the Cancel button at the bottom of New page.


Setting up Drawdowns


After creating the new loan facility, you can add drawdowns as well. The following instructions help you understand how to do this:


To setup drawdowns 

1. Go to Loan Facility page.

2. In the ROC Number column, click the ROC button. See the image below.



    A new window is opened by displaying the Drawdowns panel.


3. On the Drawdowns panel, first click the three dots (...) button, and then click 
Add Drawdown.



The Loan Facility Details page is displayed.


4. On the Loan Facility Details page, enter all the required details, and then click the Create button at the bottom.


The drawdown is added to the loan facility.