Loan origination is the process by which a borrower applies for and obtains a loan from a lender which involves several steps. It starts with the application for loan by the borrower, submission of the required documentation, the lender’s detailed review and assessment of the loan application for determination of credit risk, and thereafter approval of the loan application and the final disbursal of funds (or declining of the loan application).
This module provides an end-to-end loan origination process on a single platform and offers a flexible, process-managed approach that supports a fully customized loan origination engine helping to enhance customer experience.
It enables financial institutions to:
- Be future ready
- Capture data across multiple entities
- Optimize work flows
- Cover all related information including shareholders, subsidiaries, and parent companies
- Increase the analysis scope
- Ease customer onboarding processes
The Loan Origination module covers portfolio management, risk assessment, compliance with regulatory norms, and transparent lending process to address the competitive business environment and changing regulatory requirements.
Furthermore, it provides the feature of Facility Management by capturing the details of the facility(s) that are offered to the specific customer by the bank along with the details of eligible collateral(s) for each facility.
The key features of Facility Management are as follows:
- Link Facility with Margin Call Agreement
Loan Management Solution – CorrCMS allows linking of multiple facilities with a margin call agreement to make a single margin call on those group facility(s) to increase the efficiency and productivity of the bank.
- Apply the Facility Margin / Haircut on the linked Collateral
Functionality is provided to apply facility level margin on the linked collateral in addition to standard margin to cover the applicable risk.
- Attach Relevant Facility Related Documents for Reference
A feature is provided to attach relevant documents with the facility for reference purpose.
- Link Customer Account with Facility
Functionality is provided to link a customer account with the facility in order to integrate Loan Management Solution – CorrCMS and the bank’s GL system to reconcile and ensure that exposures are in line with the approved facility amount.