Create a consumer line of credit application
A Line of Credit is a credit arrangement in which a financial institution agrees to lend money to a customer up to a specified limit. Generally, the line of credit is arranged before the funds are actually required, thus providing flexibility to the customer. It ensures the ability to meet short-term cash needs when the need arises.
Prerequisites
The following are the prerequisites for creating a line of credit:
The Line of Credit CL Product is set up
A contact or an account is set up
Steps
Perform the following steps to create a line of credit application:
Log in to your Salesforce account.
Go to Applications.
Select New.
Select Line of Credit as the Record Type of new Record and select Continue.
On the New Application page, go to the Select Product section and specify the required CL Product to identify the line of credit product.
The Asset Class Name is displayed identifying the type of line of credit. For example, Consumer(Unsecured), Consumer(Secured) or Consumer(Real Estate).
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 an 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 theIndividual 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 the Previous Address section of the field reference table.This section is available if 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.
Select Save.
An application ID is generated.
As the next step, you must define the borrowing parties in Q2 Origination, capture their business information and assess their creditworthiness. Following this, you need to score the application as per the required criteria and price the application. Once the applicant approves the pricing, you can verify the documentation is completed by the user and all obligations are met, and convert the application into a formal contract.
Field reference
| Field Name | Description |
|---|---|
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 section | |
| 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 Line of Credit for purchase or construction of consumer properties like hotels or hospitals, or renovation of business complexes under asset class Consumer Real Estate. |
| New Contact | The Check box is 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 lease is for an organization, this signifies the primary contact person of that organization. |
Individual Borrowing Entity section | |
First Name | The First Name of the borrower. |
Middle Name | The Middle Name of the borrower. |
Last Name | The Last Name of the borrower. |
| Legal Entity Type | The legal entity type of the borrower. For example, Individual, Corporation, or Association.The borrower type determines the documents required for application origination, and the type of financial and credit checks to be performed. |
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. |
SSN | The SSN numbers. |
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 section | |
Current Street | Specify the current address details. |
Current City | |
Current State/Province | |
Current Zip/Postal Code | |
Current Country | |
Mailing Address section | |
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 section | |
Years | The period in the years and months that you have stayed in the current address. |
Months | |
Residential Status | The status of the resident.Options supported:
|
Monthly Payment Amount | The monthly payment amounts. |
Previous Address section | |
Previous Street | Specify the previous address details. |
Previous City | |
Previous State/Province | |
Previous Zip/Postal Code | |
| Previous Country | |
Additional Information section | |
Employee | This checkbox is automatically selected if any one of the borrowers is an 'Employee'.The Employee field is selected on the Party page. |
Insider Relationship | Specified contact is an Insider or Relative Interest of an insider. The supported options are:
|
Military Relationship | Specified contact is a service member or service member dependent. The supported options are:
|
Service Member Military Status | The military status of the service member. The supported options are:
|
Loan Information section | |
| Credit Limit | The credit limit is the maximum advance amount that can be given to the borrower at any point in time. |
Company | Displays the selected Company. |
| CL Purpose | The primary purpose of the application. |
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. |
Key Dates section | |
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. |
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 as well as the risks. |
Disbursement Date | The Disbursement Date of the loan amount. |
Interest Information section | |
Interest Rate | The Interest Rate of the loan. |
Interest Calculation Method | The interest calculation method. The supported options are:
|
Spread | This is the difference between the average yield received by the organization from 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. |
Interest Only Period | The Interest Only period, if any. |
Discount Rate | Any Discount Rate that is applicable to the current interest rate. |
Discount Rate Based On | Select the criteria the Discount Rate is Based On. This can be the Number of Payments or the Ending Date. |
Payment Information section | |
Term | The loan term. |
Amortization Term | The Amortization Term over which the borrower payments can be spread. If this is shorter than the loan term, it results in the last payment being a balloon payment. |
Days Convention | The number of days convention of the loan. The supported options are:
Note: The value of this field is copied from the product in the application. |
Payment Amount | The Payment Amount on the loan. |
Rate Floor | The Rate Floor for a loan. Note: The value of this field is copied from the product in the application. |
| APR | The annual percentage rate (APR) is the annual rate charged for borrowing or earned through an investment. APR is expressed as a percentage that represents the actual yearly cost of funds over the term of a loan. |
| Draw Term | This is the period in which the amount can be disbursed to the user. |
Payment Frequency |
|
Balloon Payment | Any Balloon Payment that the borrower is making. |
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 section | |
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. |