Create a Consumer Loan Application
A consumer loan is for an individual borrower. Consumer loans are extended to individual borrowers. Education loans, simple loans, and home improvement loans are some examples of consumer loans. A lending organization can configure these as collateralized or non-collateralized, often referred to as secured and unsecured loans respectively.
Creating an application includes selecting the appropriate lending product and associated parties and specifying the fees, rates, and other lending terms such as the loan amount, term, interest calculation details, documents to be verified, and the stakeholders and their credit details. You can either select an existing borrower account or create an account for a new borrower. The latter invokes the Borrower Management Wizard using which you can record the borrower's details and the other parties associated with the loan application.
Prerequisites
Before you proceed to create a consumer loan application, ensure that the following prerequisites are met:
CL Product is set up.
The scorecard is configured.
Steps
To create a consumer loan application:
Log in to your Salesforce account.
Go to Applications > New. Alternatively, select Create New..., Application.
Note:The Create New pick list is generated based on the tabs in the top navigation bar.
Select the Record Type of new record as Loan and select Continue.
On the New Application page, select the required CL Product. For example, Student Loan.
The Asset Class is displayed, identifying the type of loan. For example, Consumer (Unsecured) or Consumer (Secured).
In the Borrower Information section, do one of the following:
Select the New Contact checkbox if the borrower is a new customer.
For existing customers, select on the search icon in the Contact field and select the account or business name.
For existing contact, you can modify the displayed information if needed.
If you have selected the New Contact checkbox, specify the field values as described in the Individual Borrowing Entity section of the Field Reference table.
Specify the field values as described in the Current Address section of the Field Reference table.
Specify the field values as described in the Mailing Address section of the Field Reference table.
Specify the field values as described in the Time at Current Address section of the Field Reference table.
Specify the field values as described in thePrevious Address section of the Field Reference table.
This section is available if the time at the current address is less than or equal to 1 year.
Specify the field values as described in the Additional Information section of the Field Reference table.
Specify the field values as described in the Loan Information section of the Field Reference table.
Specify the field values as described in the Key Dates section of the Field Reference table.
Specify the field values as described in the Interest Information section of the Field Reference table.
Specify the field values as described in the Payment Information section of the Field Reference table.
Specify the field values as described in the Loan Codes section of the Field Reference table.
In the Regulations Osection:
Select the Employee Loan checkbox if the borrower is an employee of your organization.
Select Regulation Officer to identify the designation of the employee availing the loan. For example, Executive Officer. You can add to this list.
Select Save.
An application ID is generated, and the loan dashboard is created for the application based on the departmental approval workflow and documents associated with the loan product. You can include additional details on this page.
Specify the Auto Debit Account Information section field values as described in the Auto Debit Account Information section.
Note:These section fields are available once the application is created.
See the subsequent sections for information on the fields on this page and steps to specify further details on the application.
Add Personal Identification Information
To add Personal Identification information, do the following steps:
Go to Documents > Application Documents.
If the document definitions are defined, the respective folders are displayed under the Documents section.
To define a document, see Q2 Origination Administration Guide > Documents Configuration.
For primary identification, select the Primary Identification folder and select icon of the primary identification section.
For secondary identification, select the Secondary Identification folder and select icon of the secondary identification section.
Select Upload.
Select the number of required documents from the local drive and select Add Documents .
Select the required uploaded document and select icon.
The Document Input window is displayed.
Specify the required field values as described in the s table and select Save.
Field Reference
| Field | Information |
|---|---|
Record Type of new record | The lending product for which you are creating the application. This can be Lease, Line of Credit, or Loan. |
Select Product | |
CL Product | The type of Line of Credit being applied for. This is based on the record type selected. This is a mandatory field. |
| Asset Class Name | A grouping of products with similar characteristics. For example, you may group loans to purchase or construct commercial properties like hotels or hospitals or renovation of business complexes under asset class Commercial Real Estate. |
Borrower Information | |
| New Contact | Check box to indicate whether the applicant is a new contact or an existing customer of the lending organization. |
| Contact | The name of the applicant. In case the loan is for an organization, this signifies the primary contact person of that organization. |
Individual Borrowing Entity | |
First Name | The first name of the borrower. |
Middle Name | The middle name of the borrower. |
Last Name | The last name of the borrower. |
Birthdate | The date of the birth of the borrower. |
The email address of the borrower. | |
Marital Status | The status of the marriage of the borrower. |
Legal Entity Type | The legal entity type of the borrower. For example, Individual, Corporation, or Association. |
SSN | The SSNs. |
Mobile Phone | The 10-digit mobile phone number. |
Other Phone | The 10-digit other phone numbers. |
Country of Citizenship | The name of the country of citizenship. |
Permanent Resident | Select this checkbox if you are a permanent resident. |
Country of Residence | The name of the country of residence. |
Current Address | |
Current Street | Specify the current address details. |
Current City | |
Current State/Province | |
Current Zip/Postal Code | |
Current Country | |
Mailing Address | |
Same as Current Address | Select this checkbox if the mailing address and current address are the same. |
Mailing Street | Specify the mailing address details. |
Mailing City | |
Mailing State/Province | |
Mailing Zip/Postal Code | |
Mailing Country | |
Time at current address | |
Years | The period in years and months that you have stayed in the current address. |
Months | |
Residential Status | The status of the resident.
|
Monthly Payment Amount | The monthly payment amounts. |
Previous Address | |
Previous Street | Specify the previous address details. |
Previous City | |
Previous State/Province | |
Previous Zip/Postal Code | |
| Previous Country | |
Additional Information | |
Employee | This checkbox is automatically selected if any one of the borrowers is an 'Employee.' |
Insider Relationship | Specified contact is an Insider or Relative Interest of an insider. Options supported:
|
Military Relationship | Specified contact is a service member or service member dependent.
|
Service Member Military Status | The military status of the service member.
|
Loan Information | |
Loan Amount | The Loan Amount. |
Company | Displays the selected Company. |
CL Product | The CL product. |
| CL Purpose | The primary purpose of the application. |
| Secondary Purpose | The secondary purpose displays the filtered list based on the primary purpose(CL Purpose). You can define a secondary purpose in the Lending Purpose page for CLPurpose. |
Primary Source of Repayment | The primary source from which the borrower is expected to repay the loan. |
Secondary Source of Repayment | The alternative or additional source from which the borrower may repay the loan. |
Status | The status of the loan. |
Days Convention | The number of days convention of the loan.
Note: The value of this field is copied from the product in the application. |
Key Dates | |
Expected Start Date | This field represents the date on which the application is created or started processing(for backdated applications) |
| Expected Close Date | This field represents the date on which the application processing is expected to complete |
Expected First Payment Date | The expected first payment date of the loan. |
Interest Calculation Method | The interest calculation method. The supported options are:
|
Maturity Date | The date of the maturity of a loan. |
Participation Date | This is the date on which another financial institution may contribute to a loan. In participation, several banks may contribute to fund, say, a large commercial loan and share the returns and the risks. |
Disbursement Date | The Disbursement Date of the loan amount. |
Interest Information | |
Interest Rate | The Interest Rate of the loan. |
Spread | This is the difference between the average yield received by the organization from the loans and other interest generating activities and the average rate paid on deposits and borrowings. |
Margin | This is the fixed percentage rate added to an index value to determine the fully indexed interest rate for a variable rate loan. |
Payment Frequency | Select the loan Payment Frequency. The supported options are:
|
Interest Only Period | The Interest Only period, if any. |
Discount Rate | Any Discount Rate that applies to the current interest rate. |
Discount Rate Based On | Select the criteria the Discount Rate is Based On. This can be a Number of Payments or the Ending Date. |
Payment Information | |
Term | The loan term. |
Amortized Term | The Amortization Term over which the borrower payments can be spread. If this is shorter than the loan term, the last payment is a balloon payment. |
Balloon Payment | Any Balloon Payment that the borrower is making. |
Payment Amount | The Payment Amount on loan. |
Rate Floor | The Rate Floor for a loan. Note: The value of this field is copied from the product in the application. |
Prepayment Penalty | Select the Prepayment Penalty checkbox if a penalty must be applied in case the borrower prepays the loan. |
Prepayment Penalty Description | Provide the Prepayment Penalty Description if the prepayment penalty is applicable. |
Rate Ceiling | The rate ceiling for a loan. Note: The value of this field is copied from the product in the application. |
Loan Codes | |
| Loan Codes | The loan codes are required for reporting and core system integration. |
Call Code | The call code for CRA reporting. |
Class Code | The class code to identify the loan or lending product type. |
Portfolio Code | The portfolio code if the loan is included in a portfolio of related loans. |
Primary Collateral Code | The primary collateral code, if any, to identify the type of collateral. |
Bank Routing Number | The bank routing number is the routing number used in the payment gateway for initiating direct debit /ACH debit. |
Bank Account Number | The bank account number to capture the bank account number. |
Bank Account Type | The bank account type from the drop-down list. |
Bank Account Owner Name | The bank account owner's name. |
Primary/Secondary Identification Details | |
Identification Type | The type of the document. The supported options are:
|
Identification Number | The unique identification number of the document. |
State of Issuance | The present state of the document. |
Date of Issuance | The date on which the document was issued. |
Expiration Date | The expiry date of the document. |