Introduction to Lending

This module allows banks to use the following lending products: personal loans, vehicle loans, mortgage loans (fixed rate), mortgage loans (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.

Click here to understand the terms and abbreviations used in this module.

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.

Auto-Repayment of a Loan from the Redraw Balance

One of the widely offered functions across banks in Australia for its customers is to have offset accounts and redraw functions for mortgage contracts. In Temenos Transact, it is the UNC account (UNC) balance that is used for the redraw function. Any balance in UNC will be net with the loan outstanding (CURACCOUNT) for the purpose of principal interest calculation.

The loan repayment is serviced from the bank’s internal customer accounts or from external accounts through direct debit mandates provided by the customer.

This functionality allows banks to utilise the redraw balance for repayment of the loan and when the direct debit claim is failed and again failed after being re-tried two times additionally or when the repayment from the bank’s internal account is failed.

The booking date of such transaction will be the date on which the redraw amount is taken.

The DD.RETURN,AULEND.POST.RETURN.DD version has been introduced as part of this functionality to allow users to process the returns received and do resubmissions for collection.

When the loan repayment is failed through the settlement account or DD mandate, a new functionality has been introduced to perform the loan repayment by debiting the UNC balance and settling the outstanding bills.

A new local field has been created in the SETTLEMENT product condition as Loan Repayment from UNC Balance. This field enables the user to select an option based on which an amount will be debited from UNC to repay the outstanding loan.

The AULEND.SETTLE.ACCOUNT.REDRAW routine has been created and attached to the core settlement job. When the repayment from the settlement account is failed, the bills will be in due status.

Schedule Recalculation without Redraw Balance

Any balance in UNC will be net with the loan outstanding (CURACCOUNT) for the purpose of principal interest calculation.

The UNC balance will not be net with outstanding balance for the purpose of payment amount (EMI amount) calculation.

This functionality allows banks, when it comes to schedule recalculation, to consider the UNC balance for the interest projections on P&I contracts as it is a balance type within the loan contract.

The AULEND.CALC.PAYMENT.AMOUNT routine has been introduced to calculate the Calc Amount in the Payment Schedule based on the CURACCOUNT (CUR) balance only .The interest calculation happens as per the core by considering the CURACCOUNT and UNC balance defined in the Ac Balance Type.

The AULEND.SCH.RECAL.DR.DAILY record has been created in the AA.SOURCE.CALC.TYPE application to attach the AULEND.CALC.PAYMENT.AMOUNT routine in the Calc Routine field.

Flexible Repayment Based on the Fixed Amount

Each of the auto repayment, during the creation, expose three different options of how the system calculates the amount, which will be credited to the loan as minimum amount, or minimum amount plus extra or fixed amount.

Depending on the amount option validated during the each repayment, the re-calculated will be made automatically by the system in case of the loan re-amortisation.

With this functionality banks will be able to:

Create a request for the direct debit and setup flexible repayment amount through the direct debit.
Set up an automatic repayment on the loan based on the customer request.
Set up a flexible automatic repayment amount on the loan based on the customer request.

Multiple Loans and Package Pricing

Whenever a customer opens a fully featured home loan, an annual fee will be charged. The payment schedule can be defined to charge a fee based on the defined frequency.

If the customer has multiple fully featured home loans, then the loans will be packaged together, and one annual fee will be collected. The AULEND.PACKAGE.DETAILS application has been introduced to create, update and store the package details.

The loan disbursement can be performed during a loan creation as auto disbursement or as a separate disbursement activity. At the same time, the loan disbursement can be single or multiple disbursements.

This functionality allows banks to manage multiple fully featured loan accounts within one package and there must be one single annual fee for the package facility.

When a customer is changed, added or deleted or the customer role is changed, a new loan package will be created or added to the existing package.

Product Control Rules for Home Loans

In Australia banking practice, for home loan products, for a certain period, a fixed interest rate will be applied and post which it will be changed to a variable interest rate based on the certain criteria.

This functionality allows banks to apply the system control on the home loan product based on the interest rate type (fixed or variable), loan purpose and payment type (such as Constant or Interest Only).

Product control rules are based on the interest rate type: fixed or variable.

The product set-up has variations specified based on the purpose of the loan:

A basic home loan has the owner occupied and investment as variations at the product level.
The fully featured home loan has the owner occupied (OO), investment (INV), construction investment and construction owner occupied at the product level.

There is not a separate product for fixed rate as the customer will move to a variable rate after a few years. In order to facilitate this, a product switch will be performed where the system cannot show the variable rate schedules upfront after the fixed rate period is over.

The product structure offers both fixed and variable rates. Based on the interest rate type, the product control rules must be checked by the system and there is no manual intervention by the back-office user.

The Loan Purpose field have been added to the ACCOUNT product condition to define the loan purpose.

An external property class has been created to define the required controls.

Product Configurations

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

Personal Loans

The following table provides information related to the Australia Personal Loans product.

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 and 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 and 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

Vehicle Loans

The following table provides information related to the Australia Vehicle Loans product.

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 and 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 and 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

Mortgage Loans (Fixed Rate)

The following table provides information related to the Australia Mortgage Loans (Fixed Rate) product.

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 and 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

Mortgage Loan (Variable Rate)

The following table provides information related to the Australia Mortgage Loan (Variable Rate) product.

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 and 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

Mortgage Loans

The following table provides information related to the Australia Mortgage Loans product.

Characteristic	Default Values	Configuration Options
Characteristic	Default Values	At the Product Level	At the Account Level
Eligibility	Local residents above the age of maturity (18) are eligible for this product	Eligibility rules are fully configurable within the capabilities of the provided rules engine	n/a
Joint Accounts	No restriction are defined in the product	n/a	Joint accounts are configurable
Available Currencies	USD	Products can be defined in EUR, USD, GBP and CHF	n/a
Term and Amount
Minimum Amount	The minimum amount of $20,000 is defined in the product	The minimum amount is configurable	Cannot be negotiated at the account level
Maximum Amount	There is no maximum amount restriction, defined as $1,000,000 in the product	The maximum amount is configurable	Cannot be negotiated at the account level
Minimum Term	The minimum term of 5Y is defined in the product	The minimum term is configurable	Cannot be negotiated at the account level
Maximum Term	The maximum term of 40Y is defined in the product	The maximum term is configurable	Cannot be negotiated at the account level
Cooling Period	The cooling period is defined as 7D	The cooling period is configurable	Cannot be negotiated at the account level
Cancel Period	The cancel period is defined as 7D	The cancel period is configurable	Cannot be negotiated at the account level
Repayments
Repayment Type	The payment type is defined as CONSTANT	This feature is non configurable	Cannot be negotiated at the account level
Repayment Date and Frequency	The repayment frequency is defined as every month	Repayment date is configurable	The repayment date is negotiable at the account level
Repayment Settlement	The repayment settlement is set as the current account of the customer in the bank	The repayment settlement is configurable as a nominated bank account or direct debit	The repayment settlement is negotiable at the account level
Payment Holiday	The payment holiday of 6 months repayment is defined in the product	The payment holiday is configurable but to a limited number	Cannot be negotiated at the account level
Overdue	1 day -> loan status is current 5 days ->loan status is grace 60 days->loan status is delinquent more than 60 days->loan status is non accrual basis	The number of days is configurable	Cannot be negotiated at the account level
Overpayments	Overpayments are allowed in the product	The ability to redraw an overpayment amount or to skip a payment is configurable	Cannot be negotiated at the account level
Interest
Principal Interest
Rate	The interest rate is set as fixed rate 3% p.a with a single tier without a margin	Different bands or levels can be defined. The interest rate (per band or tier) can be set to a fixed interest rate or may follow an index with an applied margin	Cannot be negotiated at the account level
Day basis	Day basis – C 366 / 366	This can be configured to any supported day basis	Cannot be negotiated at the account level
Accrual	The accrue rule is set as FIRST and excludes the closure day	This feature is non configurable	Cannot be negotiated at the account level
Penalty Interest
Rate	The interest rate is set as fixed rate 2% p.a with a single tier without a margin	Different bands or levels can be defined. The interest rate (per band or tier) can be set to a fixed interest rate or may follow and index with an applied margin	Cannot be negotiated at the account level
Day Basis	Day basis – C 366 / 366	This can be configured to any supported day basis	Cannot be negotiated at the account level
Accrual	The accrue rule is set as FIRST and it excludes the closure day.	This feature is non configurable	Cannot be negotiated at the account level
Fees and Charges
Late Payment Charge	The penalty for missed repayment is defined as 10$ per instance of missed repayment in the product	The charge amount is configurable	Cannot be negotiated at the account level
Early Redemption Fee	The pre-closure fee is defined as 5% p.a in the product	The charge amount is configurable	Cannot be negotiated at the account level
Closure Restrictions
Early Redemption	Early redemption is allowed with charge as defined in the product	The early redemption fee is configurable	Cannot be negotiated at the account level
Settlement
Payin and Payout Account	Define an account for the repayment to happen automatically or a direct debit	This feature is configurable which can be switched on or off	The payin and payout account is negotiable at the account level
Alerts
Payment Due	Alerts sent N days ahead of a repayment due date	This feature is configurable for a number of days	Cannot be negotiated at the account level
Missed Payments	Alerts will be sent N days after a missed repayment	This feature is configurable for a number of days	Cannot be negotiated at the account level
Closure	The lending account can be closed after 3 days of zero balance	The closure period is configurable but not online	Cannot be negotiated at the account level

Line Of Credit Loans

The following table provides information related to the Australia Line Of Credit Loans product.

Characteristic	Default Values	Configuration Options
Characteristic	Default Values	At the Product Level	At the Account Level
Eligibility	Local residents above the age of maturity (18) are eligible for this product	Eligibility rules are fully configurable within the capabilities of the provided rules engine	n/a
Joint Accounts	No restriction are defined in the product	n/a	Joint accounts are configurable
Available Currencies	AUD	Products can be defined in AUD, EUR, USD, GBP and CHF	n/a
Term and Amount
Minimum Amount	The minimum amount of $1000 is defined in the product	The minimum amount is configurable	Cannot be negotiated at the account level
Maximum Amount	There is no maximum amount restriction, defined as $50,000 in the product	The maximum amount is configurable	Cannot be negotiated at the account level
Minimum Term	The minimum term of 1Y is defined in the product	The minimum term is configurable	Cannot be negotiated at the account level
Maximum Term	The maximum term of 5Y is defined in the product	The maximum term is configurable	Cannot be negotiated at the account level
Cooling Period	The cooling period is defined as 7D	The cooling period is configurable	Cannot be negotiated at the account level
Cancel Period	The cancel period is defined as 7D	The cancel period is configurable	Cannot be negotiated at the account level
Repayments
Repayment Type	Payment type is defined as % of PRINCIPAL, INTEREST and CHARGE	The payment type can be configurable to INTEREST.ONLY	Cannot be negotiated at the account level
Repayment Date and Frequency	The repayment frequency is defined as every month	The repayment date is configurable	The repayment date is negotiable at the account level
Repayment Settlement	The repayment settlement is set as current account of the customer in the bank	The repayment settlement is configurable as a nominated bank account/Direct debit	The repayment settlement is negotiable at the account level
Payment Holiday	Payment holiday is not allowed for this product	This feature is non configurable	Cannot be negotiated at the account level
Overdue	1 day -> loan status is current 5 days ->loan status is grace 60 days->loan status is delinquent more than 60 days->loan status is non accrual basis	The number of days is configurable	Cannot be negotiated at the account level
Overpayments	Overpayments are not allowed for this product	This feature is non configurable	Cannot be negotiated at the account level
Interest
Principal Interest
Rate	The interest rate is set as fixed rate 5% p.a with a single tier without a margin	Different bands or levels can be defined. The interest rate (per band or tier) can be set to a fixed interest rate or may follow an index with an applied margin	Cannot be negotiated at the account level
Day Basis	Day basis – C 366 / 366	This can be configured to any supported day basis	Cannot be negotiated at the account level
Accrual	The accrue rule is set as FIRST and exclude closure day.	This feature is non configurable	Cannot be negotiated at the account level
Penalty Interest
Rate	The interest rate is set as fixed rate 2% p.a with a single tier without a margin	Different bands or levels can be defined. The interest rate (per band or tier) can be set to a fixed interest rate or may follow an index with an applied margin	Cannot be negotiated at the account level
Day Basis	Day basis – C 366 / 366	This can be configured to any supported day basis	Cannot be negotiated at the account level
Accrual	The accrue rule is set as FIRST and excludes the closure day	This feature is non configurable	Cannot be negotiated at the account level
Fees and Charges
Late Payment Charge	The penalty for missed repayment is defined as 10$ per instance of the missed repayment in the product	The charge amount is configurable	Cannot be negotiated at the account level
Early Redemption Fee	Early redemption is allowed for this product with no fee	The early redemption fee is configurable	Cannot be negotiated at the account level
Closure Restrictions
Early Redemption	Early redemption is allowed without charge as defined in the product	The early redemption fee is configurable	Cannot be negotiated at the account level
Settlement
Payin and Payout Account	Define an account for the repayment to happen automatically or a direct debit	This feature is configurable	The payin and payout account is negotiable at the account level
Alerts
Payment Due Bills in Advance	Alerts sent N days ahead of a repayment due date	This feature is configurable for a number of days	Cannot be negotiated at the account level
Missed Payments	Alerts will be sent N days after a missed repayment	This feature is configurable for a number of days	Cannot be negotiated at the account level
Closure	The lending account can be closed after 3 days of zero balance	The closure period of n days is configurable but not online	Cannot be negotiated at the account level

Fixed Loans

The following table provides information related to the Australia Fixed Loans product.

Characteristic	Default Values	Configuration Options
Characteristic	Default Values	At the Product Level	At the Account Level
Eligibility	Local residents above the age of maturity (18) are eligible for this product	Eligibility rules are fully configurable within the capabilities of the provided rules engine	n/a
Joint Accounts	No restrictions are defined in the product	n/a	Joint accounts are configurable
Available Currencies	AUD	Products can be defined in AUD, EUR, USD, GBP and CHF	n/a
Term and Amount
Minimum Amount	The minimum amount of $1000 is defined in the product	The minimum amount is configurable	Cannot be negotiated at the account level
Maximum Amount	There is no maximum amount restriction, defined as $100,000 in the product	The maximum amount is configurable	Cannot be negotiated at the account level
Minimum Term	The minimum term of 1Y is defined in the product	The minimum term is configurable	Cannot be negotiated at the account level
Maximum Term	The maximum term of 5Y is defined in the product	The maximum term is configurable	Cannot be negotiated at the account level
Cooling Period	The cooling period is defined as 7D	The cooling period is configurable	Cannot be negotiated at the account level
Cancel Period	The cancel period is defined as 7D	The cancel period is configurable	Cannot be negotiated at the account level
Repayments
Repayment Type	The payment type is defined as CONSTANT	This feature is non configurable	Cannot be negotiated at the account level
Repayment Date and Frequency	The repayment frequency is defined as every month	The repayment date is configurable	Repayment date is negotiable at the account level
Repayment Settlement	The repayment settlement is set as current account of the customer in the bank	The repayment settlement is configurable as a nominated bank account or direct debit	The repayment settlement is negotiable at the account level
Payment Holiday	The payment holiday is not allowed for this product	This feature is non configurable	Cannot be negotiated at the account level
Overdue	1 day -> loan status is current 5 days ->loan status is grace 60 days->loan status is delinquent more than 60 days->loan status is non accrual basis	The number of days is configurable	Cannot be negotiated at the account level
Overpayments	Overpayments are not allowed for this product	This feature is non configurable	Cannot be negotiated at the account level
Interest
Principal Interest
Rate	The interest rate is set as fixed rate 10.99% p.a with a single tier without a margin	Different bands or levels can be defined. The interest rate (per band or tier) can be set to a fixed interest rate or may follow and index with an applied margin	Cannot be negotiated at the account level
Day Basis	Day basis – C 366 / 366	This can be configured to any supported day basis	Cannot be negotiated at the account level
Accrual	The accrue rule is set as FIRST and excludes the closure day	This feature is non configurable	Cannot be negotiated at the account level
Penalty Interest
Rate	The interest rate is set as fixed rate 1.99% p.a with a single tier without a margin	Different bands or levels can be defined. The interest rate (per band or tier) can be set to a fixed interest rate or may follow and index with an applied margin	Cannot be negotiated at the account level
Day Basis	Day basis – C 366 / 366	This can be configured to any supported day basis	Cannot be negotiated at the account level
Accrual	The accrue rule is set as FIRST and excludes the closure day	This feature is non configurable	Cannot be negotiated at the account level
Fees and Charges
Late Payment Charge	The penalty for missed repayment is defined as 10$ per instance of missed repayment in the product	The charge amount is configurable	Cannot be negotiated at the account level
Early Redemption Fee	The pre-closure fee is defined as 5% p.a in the product	The charge amount is configurable	Cannot be negotiated at the account level
Closure Restrictions
Early Redemption	Early redemption is allowed with charge as defined in the product	The early redemption fee is configurable	Cannot be negotiated at the account level
Settlement
Payin and Payout Account	Define an account for the repayment to happen automatically or a direct debit	This feature is configurable	The payin and payout account is negotiable at the account level
Alerts
Payment Due Bills in Advance	Alerts sent N days ahead of a repayment due date	This feature is configurable for a number of days	Cannot be negotiated at the account level
Missed Payments	Alerts will be sent N days after a missed repayment	This feature is configurable for a number of days	Cannot be negotiated at the account level
Closure	A lending account can be closed after 3 days of zero balance	The closure period of n days is configurable but not online	Cannot be negotiated at the account level

Flexible Loans

The following table provides information related to the Australia Flexible Loans product.

Characteristic	Default Values	Configuration Options
Characteristic	Default Values	At the Product Level	At the Account Level
Eligibility	Local residents above the age of maturity (18) are eligible for this product	Eligibility rules are fully configurable within the capabilities of the provided rules engine	n/a
Joint Accounts	No restriction are defined in the product	n/a	Joint accounts are configurable
Available Currencies	AUD	Products can be defined in AUD, EUR, USD, GBP and CHF	n/a
Term and Amount
Minimum Amount	The minimum amount of $1,000 is defined in the product	The minimum amount is configurable	Cannot be negotiated at the account level
Maximum Amount	There is no maximum amount restriction, defined as $100,000 in the product	The maximum amount is configurable	Cannot be negotiated at the account level
Minimum Term	The minimum term of 1Y is defined in the product	The minimum term is configurable	Cannot be negotiated at the account level
Maximum Term	The maximum term of 10Y is defined in the product	The maximum term is configurable	Cannot be negotiated at the account level
Cooling Period	The cooling period is defined as 7D	The cooling period is configurable	Cannot be negotiated at the account level
Cancel Period	The cancel period is defined as 7D	The cancel period is configurable	Cannot be negotiated at the account level
Repayments
Repayment Type	The payment type is defined as CONSTANT	This feature is non configurable	Cannot be negotiated at the account level
Repayment Date and Frequency	The repayment frequency is defined as every month	The repayment date is configurable	Repayment date is negotiable at the account level
Repayment Settlement	The repayment settlement is set as current account of the customer in the bank	The repayment settlement is configurable as a nominated bank account or direct debit	Repayment settlement is negotiable at the account level
Payment Holiday	The payment holiday of 1 month repayment is defined in the product	The payment holiday is configurable but to a limited number	Cannot be negotiated at the account level
Overdue	1 day -> loan status is current 5 days ->loan status is grace 60 days->loan status is delinquent more than 60 days->loan status is non accrual basis	The number of days are configurable	Cannot be negotiated at the account level
Overpayments	Overpayments are allowed in the product	The ability to redraw an overpayment amount or to skip a payment is configurable	Cannot be negotiated at the account level
Interest
Principal Interest
Rate	The interest rate is set as fixed rate 15% p.a with a single tier without a margin	Different bands or levels can be defined. The interest rate (per band or tier) can be set to a fixed interest rate or may follow and index with an applied margin	Cannot be negotiated at the account level
Day Basis	Day basis – C 366 / 366	This can be configured to any supported day basis	Cannot be negotiated at the account level
Accrual	The accrue rule is set as FIRST and excludes the closure day	This feature is non configurable	Cannot be negotiated at the account level
Penalty Interest
Rate	The interest rate is set as fixed rate 2% p.a with a single tier without a margin	Different bands or levels can be defined. The interest rate (per band or tier) can be set to a fixed interest rate or may follow and index with an applied margin	Cannot be negotiated at the account level
Day Basis	Day basis – C 366 / 366	This can be configured to any supported day basis	Cannot be negotiated at the account level
Accrual	The accrue rule is set as FIRST and excludes the closure day	This feature is non configurable	Cannot be negotiated at the account level
Fees and Charges
Late Payment Charge	The penalty for missed repayment is defined as 10$ per instance of missed repayment in the product	The charge amount is configurable	Cannot be negotiated at the account level
Early Redemption Fee	No charge is defined in the product	The charge amount is configurable	Cannot be negotiated at the account level
Closure Restrictions
Early Redemption	Early redemption is allowed without charge as defined in the product	The early redemption fee is configurable	Cannot be negotiated at the account level
Settlement
Payin and Payout Account	Define an account for the repayment to happen automatically or a direct debit	This feature is configurable which can be switched on or off	The payin and payout account is negotiable at the account level
Alerts
Payment Due	Alerts sent N days ahead of a repayment due date	This feature is configurable for a number of days	Cannot be negotiated at the account level
Missed Payments	Alerts will be sent N days after a missed repayment	This feature is configurable for a number of days	Cannot be negotiated at the account level
Closure	The lending account can be closed after 3 days of zero balance	The closure period of n days is configurable but not online	Cannot be negotiated at the account level

Holiday Loans

The following table provides information related to the Australia Holiday Loans product.

Characteristic	Default Values	Configuration Options
Characteristic	Default Values	At the Product Level	At the Account Level
Eligibility	Local residents above the age of maturity (18) are eligible for this product	Eligibility rules are fully configurable within the capabilities of the provided rules engine	n/a
Joint Accounts	No restriction are defined in the product	n/a	Joint accounts are configurable
Available Currencies	AUD	Products can be defined in AUD, EUR, USD, GBP and CHF	n/a
Term and Amount
Minimum Amount	The minimum amount of $1000 is defined in the product	The minimum amount is configurable	Cannot be negotiated at the account level
Maximum Amount	There is no maximum amount restriction, defined as $100000 in the product	The maximum amount is configurable	Cannot be negotiated at the account level
Minimum Term	The minimum term of 1Y is defined in the product	The minimum term is configurable	Cannot be negotiated at the account level
Maximum Term	The minimum term of 10Y is defined in the product	The maximum term is configurable	Cannot be negotiated at the account level
Cooling Period	The cooling period is defined as 7D	The cooling period is configurable	Cannot be negotiated at the account level
Cancel Period	The cancel period is defined as 7D	The cancel period is configurable	Cannot be negotiated at the account level
Repayments
Repayment Type	The payment type is defined as CONSTANT	This feature is non configurable	Cannot be negotiated at the account level
Repayment Date and Frequency	The repayment frequency is defined as every month	The repayment date is configurable	Repayment date is negotiable at the account level
Repayment Settlement	The repayment settlement is set as current account of the customer in the bank	The repayment settlement is configurable as a nominated bank account or direct debit	Repayment settlement is negotiable at the account level
Payment Holiday	The payment holiday is not allowed for this product	This feature is non configurable	Cannot be negotiated at the account level
Overdue	1 day -> loan status is current 5 days ->loan status is grace 60 days->loan status is delinquent more than 60 days->loan status is non accrual basis	The number of days are configurable	Cannot be negotiated at the account level
Overpayments	Overpayments are allowed in the product	The ability to redraw an overpayment amount or to skip a payment is configurable	Cannot be negotiated at the account level
Interest
Principal Interest
Rate	The interest rate is set as fixed rate 18% p.a with a single tier without a margin	Different bands or levels can be defined. The interest rate (per band or tier) can be set to a fixed interest rate or may follow and index with an applied margin	Cannot be negotiated at the account level
Day Basis	Day basis – C 366 / 366	This can be configured to any supported day basis	Cannot be negotiated at the account level
Accrual	Accrue rule is set as FIRST and excludes the closure day	This feature is non configurable	Cannot be negotiated at the account level
Penalty Interest
Rate	Interest rate is set as fixed rate 2% p.a with a single tier without a margin	Different bands or levels can be defined. The interest rate (per band or tier) can be set to a fixed interest rate or may follow and index with an applied margin	Cannot be negotiated at the account level
Day Basis	Day basis – C 366 / 366	This can be configured to any supported day basis	Cannot be negotiated at the account level
Accrual	The accrue rule is set as FIRST and excludes the closure day	This feature is non configurable	Cannot be negotiated at the account level
Fees and Charges
Late Payment Charge	The penalty for missed repayment is defined as 10$ per instance of missed repayment in the product	The charge amount is configurable	Cannot be negotiated at the account level
Early Redemption Fee	No charge is defined in the product	The charge amount is configurable	Cannot be negotiated at the account level
Closure Restrictions
Early Redemption	Early redemption is allowed without charge as defined in the product	The early redemption fee is configurable	Cannot be negotiated at the account level
Settlement
Payin and Payout Account	Define an account for the repayment to happen automatically or a direct debit	This feature is configurable which can be switched on or off	The payin and payout account is negotiable at the account level
Alerts
Payment Due	Alerts sent N days ahead of a repayment due date	This feature is configurable for a number of days	Cannot be negotiated at the account level
Missed Payments	Alerts will be sent N days after a missed repayment	This feature is configurable for a number of days	Cannot be negotiated at the account level
Closure	The lending account can be closed after 3 days of zero balance	The closure period is configurable but not online	Cannot be negotiated at the account level

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