Configuring the fund movement and bank details

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Configuring the fund movement and bank details

You must configure the bank setup details to define the movements of funds from various bank accounts for a lending institution, and the related bank account details. It displays two tabs, Fund Movement, and Bank Account Details.

Fund movement

These bank account details are used by CL Loan to generate the necessary bank files for processing incoming and outgoing payments. For a traditional lender, the following bank accounts are recommended.

  • Advance Trust Account
  • Collections Trust Account
  • Investor Trust Account
  • Business Account
  • Tax Withholding Account

Bank account details

The details of the bank accounts are configured under this page.

Prerequisites

None

Steps

Perform the following steps to submit the Bank Account Details:

  1. Specify the Account Type that is associated with the contract. For example, Savings or Checking.

  2. Specify the ACH Code. The ACH code is provided by the bank.

  3. Select the option Active. This denotes that your bank account is active.

  4. Specify the Bank Account Number.

  5. Specify the Bank Name.

  6. Specify the Routing Number. It is provided by the bank

  7. Specify the Signature Line. The signature of the account holder.

  8. Click Submit.

            A confirmation message is displayed, click OK.

    For more information about the Bank Setup, see Set Up the Bank Information.

Multiple ACH

The purpose of ACH is to clear and settle electronic transactions. Also, it reduces the number of late payments, which in turn reduces the late fee that a borrower may have to pay.

CL Loan has the ability to make ACH transactions for both outgoing and incoming payments for various loan related transactions such as loan payments, loan disbursals, and investor payments. Using the Multiple ACH page, you can set up the necessary information for executing ACH transactions. The different loan related transaction events displayed in this section are as follows:

  • Loan Payment
  • Loan Disbursal
  • Investor Withdrawal
  • Investor Deposit
  • Investor Payment
  • Fee Payment
  • Broker Transaction
  • Loan Repayment Refund

The fields like Event, Filegen Class, Payment Mode, and Bank Account are displayed by default as the information is taken from the previous section Bank Setup, and the rest of the information is required to be filled.

Fill in the details for one event, it will save that particular event.

Note:

For more information on setting up Multiple ACH, see the CL Loan: ACH payments of the CL Loan User Guide.