Drawdown Terms

When a credit facility is sanctioned to a borrower or group of borrowers, there are certain terms and conditions associated with the credit facility. The terms and conditions typically are:

Products that can be associated with the Child Application
Maximum Term for applications/products under the main credit facility
Borrowers/Lessees associated with the Credit Facility
Minimum and Maximum Interest Rate for applications under the main credit facility
Collateral Types that can be associated with child applications
Asset Types that can be associated with child applications (for Lease). (This is not supported as of now.)

Q2 Origination has been enhanced to allow the financial institutions to define these terms and conditions. When a child application is created or associated with the parent application, the system must check for these conditions and display error messages. If the terms and conditions are not met, then the child application may be routed to an underwriter for exception handling.

Note:

The terms and conditions are specified for a package/deal application.
And these terms and conditions should be defined before creating a child application. The child application must comply with these terms.
In addition to terms and conditions , the financial institutions can associate policy conditions to the parent application that must be automatically copied on to the child application and evaluated on the child application. These policy conditions need not be evaluated on the parent application.
Each deal application can have the following types of child applications: Loan, Lease, or LOC.

Steps

To define drawdown terms:

Log in to your Salesforce account.
Go to (App Launcher) > Applications.
On the Applications tab, and from the list of applications, select the required application.
On the application details page, select the Deal application, go to More > Drawdown Terms.
Select Add/Remove.
Select the required drawdown terms, as described in the following table, and then select Update.

Specify the details on this page, as described in the following table, and then select Save:

Field	Action
Products for Drawdown	Specify the type of products on which a child application can be created. For example, Business Line of Credit, Asset-Based Line of Credit.
Minimum Interest Rate	Specify the minimum interest rate that is to be charged on the child application. For example, 10.
Maximum Term	Specify the maximum terms up to which the child application can borrow the amount. For example, 100.
Maximum Interest Rate	Specify the maximum interest rate that is to be charged on the child application. For example, 20.
Collateral Types	Specify the collateral types that a child application can have.
Create Policy Conditions	This field is optional. If you want to associate a policy condition with the package application that a child application must satisfy, then create a policy condition by selecting Create Policy Condition.

Note:

If the child application is closed, the drawdown conditions will not be updated for that child application. A child application is said to be closed if the Status of the child application is one of the status as defined in the Closed Status field of the Org Parameters in Setup > Custom Settings.

Specify the details on this page, as described in the following table, and then select Save:

Field	Action
Products for Drawdown	Specify the type of products on which a child application can be created. For example, Business Line of Credit, Asset-Based Line of Credit.
Minimum Interest Rate	Specify the minimum interest rate that is to be charged on the child application. For example, 10.
Maximum Term	Specify the maximum terms up to which the child application can borrow the amount. For example, 100.
Maximum Interest Rate	Specify the maximum interest rate that is to be charged on the child application. For example, 20.
Collateral Types	Specify the collateral types that a child application can have.
Create Policy Conditions	This field is optional. If you want to associate a policy condition with the package application that a child application must satisfy, then create a policy condition by selecting Create Policy Condition.

Note:

Specify the details on this page, as described in the following table, and then select Save:

Field	Action
Products for Drawdown	Specify the type of products on which a child application can be created. For example, Business Line of Credit, Asset-Based Line of Credit.
Minimum Interest Rate	Specify the minimum interest rate that is to be charged on the child application. For example, 10.
Maximum Term	Specify the maximum terms up to which the child application can borrow the amount. For example, 100.
Maximum Interest Rate	Specify the maximum interest rate that is to be charged on the child application. For example, 20.
Collateral Types	Specify the collateral types that a child application can have.
Create Policy Conditions	This field is optional. If you want to associate a policy condition with the package application that a child application must satisfy, then create a policy condition by selecting Create Policy Condition.

Note:

Specify the details on this page, as described in the following table, and then select Save:

Field	Action
Products for Drawdown	Specify the type of products on which a child application can be created. For example, Business Line of Credit, Asset-Based Line of Credit.
Minimum Interest Rate	Specify the minimum interest rate that is to be charged on the child application. For example, 10.
Maximum Term	Specify the maximum terms up to which the child application can borrow the amount. For example, 100.
Maximum Interest Rate	Specify the maximum interest rate that is to be charged on the child application. For example, 20.
Collateral Types	Specify the collateral types that a child application can have.
Create Policy Conditions	This field is optional. If you want to associate a policy condition with the package application that a child application must satisfy, then create a policy condition by selecting Create Policy Condition.

Note:

To view whether the child application has satisfied the drawdown terms, select the child application and then select the application dashboard.
Go to More > Drawdown Terms.

Note:

For all these drawdown terms, policy conditions are created for the application. The terms are marked satisfied if the child application complies with them.