Delinquency Aging
In CL Loan 2.3007 and later, lenders have the option to use the default aging buckets provided in CL Loan or define custom aging buckets to track delinquent contracts. They can define aging intervals and associate multiple such intervals to create delinquency sets. The set is then associated with the required lending product. Contracts created for the lending product assume these values.
One delinquency set may be associated with multiple lending products. However, one lending product can have only one delinquency set association. However, the same or different set can also be used for loan loss provisioning purposes.
Defining Delinquency Intervals
You can define delinquency intervals and associate them to a delinquency set. Each interval define the number of days the payment on the contract must be overdue to classify for that deliquency interval. For example, all contracts delinquent for a minimum of 10 days, and maximum of 20 days fall into the delinquency interval "Delinquent for 10-20 Days".
Delinquency intervals can be grouped together to form delinquency sets that are attached to lending products. You can do this while creating the delinquency interval or later. For more information on creating delinquency sets, refer to section Creating Delinquency Sets.
Prerequisite
None.
Steps
Perform the following steps to define delinquency intervals
Log in to your Salesforce account.
Go to Servicing Configuration, Delinquency.
Click Delinquency Intervals.
Click Define New Delinquency Interval.
Specify the Interval Name.
Specify the Minimum Due Days.
Specify the Maximum Due Days.
Click Save.
Field Reference
| Field Name | Description |
|---|---|
| Interval Name | Unique name for the delinquency interval. |
| Minimum Due Days | The minimum number of days for which payment must be overdue on the contract, to apply the current aging interval. |
| Maximum Due Days | The minimum number of days for which payment must be overdue on the contract, to apply the current aging interval. |
Create Delinquency Sets
A delinquency set is a group of delinquency intervals that cab be attached to a lending product. Creating delinquency sets allows lenders to customize tracking of contract aging.
You can create a delinquency set and add the required intervals to it. Or, if you have created delinquency sets, you can directly click the Delinquency Set Junction button in the delinquency interval creation page, to associate the intervals to sets and vice versa.
Prerequisites
The following are the prerequisites for creating a delinquency set:
- At least one delinquency intervals is defined.
Steps
Perform the following steps to create a delinquency set:
Log in to your Salesforce account.
Go to Servicing Configuration, Delinquency.
Click Delinquency Sets.
Specify the Delinquency Set Name.
Click Save. The page is refreshed with further options.
Click New Delinquency Set Junction.
Select the Delinquency Interval to add to the set.
The selected Delinquency Set is displayed by default. Modify the selection if required.
Click Save.