Assigning an investor to a loan

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Assigning an investor to a loan

You can assign one or multiple investors to a loan. Once you assign an investor, you can create the investment order for the amount being invested by the investor to fund the loan.   

Prerequisites

The following is the prerequisite for assigning an investor to a loan:

  • CL Product is set up.

Steps

 Perform the following steps to assign an investor to a loan:

  1. Log in to your Salesforce account.

  2. Click Servicing Configuration.

  3. Go to Product, Product Management.

  4. Click Fractionalization. The Fractionalization Dashboard page is displayed.

  5. Click Assign an Investor to a Loan icon. The Investor Assignment page is displayed.

  6. Specify the Loan account.

    Note:

    The status of the Loan account must be Active-good standing, Active-bad standing, Approved, or Active-Matured.

  7. Select Re-Invest Principal checkbox, if required.

  8. Select Re-Invest Interest checkbox, if required.

    Note:

     Deselect these checkboxes to move the principal component into total returns.

  9. Select the Account.

  10. Specify the Investment Amount.

    Specify a value under Investment or Share.

    If you specify a value under Investor, Share is auto updated.

    However, this depends on the principal amount remaining on the loan.

    Note:

    Share  = ( Investment Amount  / ( Loan amount * 100)

    Investment Amount = Share * ( Principal Remaining  / 100)

  11. Specify the Certificate Rate. This is the rate of Interest earned by the investor.

  12. Specify the Service Rate. This is the income earned by the P2P service provider. This is calculated as the percentage of Certificate rate. For example, if the Certificate Rate is 10% and Service Rate is defined is as 2%, the P2P service provider earns 2% (10% of Investment amount) depending on other parameters such as the number of days for which the amount is invested.

  13. Click Validate to validate the investment order details.

  14. Click Save to assign the investor and add it to active investments.

    Note:

    In addition to assigning an Investor to a Loan, an Investment Order is created. Also, Fractionalization is Active.

    • Total ownership is the sum of share of active, new and pending Investment orders.
    • You can create investment orders until the total share reaches 100%.