Create a Parent Master Loan Contract

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Create a Parent Master Loan Contract

Overview

A parent master facility loan is a loan contract that has many child loans derived from it. You cannot disburse a parent master facility loan. The sum of the loan amounts of all the child loans of a parent master facility loan cannot exceed the loan amount of their parent master facility loan.

Key Points

  • The parent master facility loan's LAD is updated if:

    • A child loan is disbursed.

    • Payment is made on the child loan which updates the loan amount in the parent master facility loan when the parent master facility loan is revolving.

Create a Parent Master Facility Loan Contract

To create a parent master facility loan contract with zero amount of disbursement:

  1. Create a loan contract with the product type as Master Facility.

  2. Approve it.

  3. Disburse a zero amount.

Prerequisites

Before creating a parent master facility loan contract, ensure that the following prerequisite is met:

  • The user is assigned to the company.

  • A lending product is created with the product type Master Facility.

  • The lending product is assigned to the company.

  • Fees and fee set are defined.

Create a Loan Contract with the product type as Master Facility

Steps

To create a parent master facility loan contract:

  1. Log in to your Salesforce account.

  2. Click  (App Launcher).

  3. Search for CL Loan, and then click it.

  4. Click CL Contracts.

  5. Click New.

    Note:

    If you do not see the New button, then perform the steps provided in the Add the New Button in CL Contract Page for Lightning View of the CL Loan Administration Guide.

  6. In the New CL Contract window, select a Master Facility record type.

    Master Facility Loan Contract Record Type

  7. Specify the details as mentioned in the table of the following link: Field Reference for Creating a Contract.

    Note:

    • Select the Product of the type Master Facility for the contract to be a parent master facility loan.

    • The Manual Loan Closure flag is enabled by default for a parent master facility loan, and you cannot disable it as a parent master facility loan is always closed manually only.

  8. Click Save.

This changes the status of the loan to Partial Application.

Note:

When you create a parent master facility loan contract, the Interest Posting flag is automatically enabled. This means that you have to provide a value for Interest Posting Frequency. Otherwise, the system displays the following error message: "If interest posting is enabled, then interest posting frequency cannot be null."

Approve

Note:

For more information on approving a contract, see Approve a Contract.

This changes the status of the parent master facility to Approved.

Disburse a Zero Amount

Steps

To disburse a zero amount loan:

  1. In the preceding master facility contract, click Transactions.

  2. In the Funding tab, click New Loan Disbursal Transaction.

  3. Specify the following details:

    Field NameValue
    Transaction Amount$0
    Mode of Payment

  4. Click Regenerate Distributions.

  5. Click Save.

    This completes the creation of a parent master facility loan contract.

This changes the status of the master facility to Active - Good Standing.

Note:

For more information on funding a loan, see Disburse a Loan.

Close a Parent Master Facility Manually

A parent master facility can only be closed manually. You can close a parent master facility loan only when all the child loans are closed. Once a parent master facility loan is closed, you cannot reverse a child loan closure.

Prerequisites

Before closing the parent master facility loan manually, ensure that the following prerequisites are met:

  • Manual Loan Closure flag is enabled on the parent master facility loan.

  • All child loans are closed.

Steps

To close a parent master facility loan manually:

  1. Log in to your Salesforce account.

  2. Click  (App Launcher).

  3. Search for CL Loan, and then click it.

  4. Click the CL Contracts tab, and then from the list of contracts, select the required  CL Contract ID.

  5. On the CL Contract page, click  (Loan Quick Menu).

  6. In the Loan Quick Menu, click Loan Actions, and then scroll down and click ManualClosure.

  7. In the Manual Loan Closure window, click Confirm.

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