Introduction to Lending

This module allows banks to use the following lending products: personal loan, vehicle loans, mortgage loans (fixed rate), mortgage loan (variable rate) in a predefined SaaS environment.

The new AU product conditions have been prefixed with AU and the existing core product conditions that have been reused do not have this prefix.

The following AU features are deployed in the AU SAAS environment:

Rate Lock: Rate lock is an agreement between the customer and the bank that allows the customer to lock in the interest rate. This will protect the customer from being exposed to the risk of interest fluctuations. The rate for a new loan is compared to that of an existing loan and the lower of the two rates is applied on the new loan. This comparison is also done when the rate lock is applied after account opening.
Loan redraw: Redraw facility is a product feature that enables a customer to access the additional funds that were paid which were paid over and above the scheduled repayment amount. If a payment results in an amount being diverted to the UNC (Unspecified Credit) balance, then the customer can recover that amount from the loan account.
Interest rate change notice: This feature will lock the repayment amount in the case the bank initiated the rate increase so that the new repayment amount will only be effective after a pre-defined notice period (days). When there is a change in the interest rate, an interest rate change notice will be generated in COB.

The following lending products are released as part of this functionality:

Product	Personal Loans
Characteristic	Default Values
Eligibility	NA
Joint Accounts	Available
Available Currencies	AUD
Cards	Not applicable
Minimum Loan Amount	$5000 minimum
Maximum Loan Amount	No maximum (configurable)
Minimum Term	6 Months
Maximum Term	5 years
Interest	Default fixed rate with a range for negotiable. ROI 5.49%
Rate	Day basis – E 366 / 365
Day basis	Accrued on the daily outstanding principal balance of the loan Accrue from start date of arrangement. Exclude closure day
Accrual	Accrue from start date of arrangement. Exclude closure day
Payment	Monthly P+I
Fees & Charges	(All of these are configurable and negotiable): $ 100 account opening fee – one time. $10 account servicing fee – monthly. $ 50 late payment fee – based on even occurrence. $ 50 loan disbursement fee – one time. $ 50 loan reminder fee – based on event. $ 10 Statement fee.
Tax	Calculate interest paid for financial year for tax purpose + WHT tax tracking & collection
Available Services	Access to Internet and mobile banking
Statement Frequency	3 monthly
Redraw	Not allowed. Any excess payment to be adjusted into UNCR balance
Repayment Mode	Cheque deposit. Internal transfer (IB or branch). Cash deposit at branch (deposit slip). Direct credit (incoming direct debit). Direct debit (pull from an internal account).
Repayment amount	Interest and principal for the term of the loan
Payout / Disbursement	Deposit into a designated internal account or account with another institution or bankers' cheque
Overdue Processing	7 days without repayment - GRA status 30 days without repayment - PDO status 90 days without repayment - NAB status (non-accrual basis)
Overdue Repayment	Oldest bill first ordered by principal, interest, penalty interest, fees, charges
Overdue Interest	Penalty interest and penalty charges applicable

Product	Vehicle Loans
Characteristic	Default Values
Eligibility	NA
Joint Accounts	Not applicable
Available Currencies	AUD
Cards	Not applicable
Minimum Balance	$ 10,000 minimum
Maximum balance	No maximum (configurable)
Minimum Term	1 years
Maximum Term	7 years
Interest	5.49 to 9.49 (based on new and used cars)
Rate	Default fixed rate with a range for negotiable
Day basis	Day basis – E 366 / 365
Accrual	Accrued on the daily outstanding principal balance of the loan Accrue from start date of arrangement. Exclude closure day
Payment	Monthly.
Fees & Charges	(All of these configurable and negotiable): $ 100 account opening fee – one time. $10 account servicing fee – monthly. $ 50 late payment fee – based on even occurrence. $ 50 loan disbursement fee – one time. $ 50 loan reminder fee – based on event.
Tax	Calculate interest paid for financial year for tax purpose + WHT tax tracking & collection.
Available Services	Access to Internet and mobile banking
Statement Frequency	6 monthly
Redraw	Not allowed. Any excess payment to be adjusted into UNCR balance.
Repayment Mode	Cheque deposit. Internal transfer (IB or branch). Cash deposit at branch (deposit slip). Direct credit (incoming direct debit). Direct debit (pull from account).
Repayment amount	Interest and principal for the term of the loan
Payout / Disbursement	Deposit into a designated internal account or account with another institution or bankers' cheque
Overdue Processing	7 days without repayment - GRA status 30 days without repayment - PDO status 90 days without repayment - NAB status (non accrual basis)
Overdue Repayment	Oldest bill first ordered by principal, interest, penalty interest, fees, charges
Overdue Interest	Penalty interest and penalty charges applicable

Product	Mortgage Loans (Fixed Rate)
Characteristic	Default Values
Eligibility	NA
Joint Accounts	Available
Available Currencies	AUD
Cards	Not applicable
Minimum Loan Amount	$100,000 minimum
Maximum Loan Amount	No maximum (configurable)
Minimum Term	5 years
Maximum Term	30 years
Interest	2.69 %
Rate	Default fixed rate with a range for negotiable Fixed for "n" number of years. N number is defined at the arrangement level (but a maximum of 5 years). After "n" number of years, the loan switches to home loan variable key rate and has a rate reset every quarter. An additional spread may also be added on top of the published rate at the arrangement level.
Day basis	Day basis – E 366 / 365
Accrual	Accrued on the daily outstanding principal balance of the loan. Accrue from start date of arrangement. Exclude closure day
Capitalisation	Monthly
Fees & Charges	(All of these configurable and negotiable): $ 100 account opening fee – one time. $10 account servicing fee – monthly. $ 50 late payment fee – based on even occurrence. $ 50 loan disbursement fee – one time. $ 50 loan reminder fee – based on event. $ 10 statement fee.
Tax	Calculate interest paid for financial year for tax purposes as per AUWHT
Available Services	Access to Internet and mobile banking. Rate lock. Redraw.
Statement Frequency	Quarterly
Redraw	Allowed
Repayment Mode	Cheque deposit. Internal transfer (IB or branch). Cash deposit at branch (deposit slip). Direct credit (incoming direct debit). Direct debit (pull from account).
Repayment amount	Interest only (to switch to P&I after n number of years). Interest and principal from start.
Payout / Disbursement	Funds transfer to another internal or external account or banker’s cheque
Overdue Processing	7 days without repayment - GRA status 30 days without repayment - PDO status 90 days without repayment - NAB status (non-accrual basis)
Overdue Repayment	Oldest bill first ordered by principal, interest, penalty interest, fees, charges
Overdue Interest	Penalty interest and penalty charges applicable.
Cooling Period	5 Days
Cancel Period	NA
Payment Holiday	Allowed

Product	Mortgage Loan (Variable Rate)
Characteristic	Default Values
Eligibility	NA
Joint Accounts	Available
Available Currencies	AUD
Cards	Not applicable
Minimum Loan Amount	$100,000 minimum
Maximum Loan Amount	No maximum (configurable)
Minimum Term	5 years
Maximum Term	30 years
Interest	2.84% linked variable rate
Rate	Variable rate - rate reset happens based on the rest period defined at the arrangement level
Day basis	Day basis – E 366 / 365
Accrual	Accrued on the daily outstanding principal balance of the loan Accrue from start date of arrangement. Exclude closure day
Payment Schedule	Monthly Could be interest only for up to 5 years. After which loan must switch to P+I payments
Fees & Charges	(All of these configurable and negotiable): $ 100 account opening fee – one time. $ 10 account servicing fee – monthly. $ 500 home loan documentation fee – one time. $ 500 home loan administration fee – one time. Stamp duty fee – one time. Based on the calculation method. To be shared. 100 redraw fee – each time redraw is processed. $ 250 rate lock fee – one time when facility availed. $ 50 late payment fee – based on event. $ 50 loan disbursement fee – one time. $ 50 loan reminder fee – event based. $ 10 statement fee.
Tax	Calculate interest paid for financial year for tax purposes
Available Services	Access to Internet and mobile banking Rate lock Redraw
Statement Frequency	Quarterly
Redraw	Allowed
Repayment Mode	Cheque deposit. Internal transfer (IB or branch). Cash deposit at branch (deposit slip). Direct credit (incoming direct debit). Direct debit (pull from account).
Repayment amount	Interest only (to switch to P&I after n number of years). Interest and principal from start.
Payout / Disbursement	Funds transfer to another internal or external account banker’s cheque
Overdue Processing	7 days without repayment - GRA status 30 days without repayment - PDO status 90 days without repayment - NAB status (non accrual basis)
Overdue Repayment	Oldest bill first ordered by principal, interest, penalty interest, fees, charges
Overdue Interest	Penalty interest and penalty charges applicable
Cooling Period	5 Days
Cancel Period	NA
Payment Holiday	Allowed

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