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Types of Processes for Loan Contracts ​

The entire list of processes can be divided into two categories:

1. Related to Cash Flow:

  • Disbursement
  • Repayment
  • Early Repayment
  • Repayment with Prepayment

These processes can only be executed if there is a cash flow transaction on the contract, as the process references the cash flow amount and makes balance changes to the contract based on it.

The order of repayment for debt types is applied as specified in the contract's product.

2. Internal – not related to or not referencing cash flow on the contract:

  • Contract Processing
  • Processing with Prepayment Offset
  • Processing without Penalties
  • Processing with Additional Accrual without Penalties
  • Processing with Early Prepayment Offset
  • Processing with Prepayment Offset and Schedule Recalculation
  • Prolongation
  • Mandatory Interest Accrual
  • Transfer of Prepayment from Interest to Principal
  • Early Prepayment Offset
  • Transfer of Interest to Deferred Interest
  • Future Interest Accrual
  • Stop Penalty Accrual
  • Start Penalty Accrual
  • Schedule Recalculation
  • Discounting
  • Stop Interest Accrual
  • Start Interest Accrual
  • Assignment Closure
  • Interest Accrual until Loan End
  • Forced Schedule Recalculation
  • Repayment Fee Accrual
  • IFRS Reserve
  • IFRS Reserve Rate Calculation

These processes can be created for a single contract, for a selection, or in batch for all contracts without selection.

Each process performs accruals and balance adjustments on the contract according to the embedded process algorithms (description of each below).

Disbursement – performs accrual of principal debt by tranches, according to the Schedule. If the product terms include a disbursement fee, an additional accrual and repayment of the fee is performed (provided there is an incoming cash flow for the fee amount)

Repayment – performs repayment of current debt in the order specified in the contract's loan product for the amount of unaccepted cash flow on the contract.

Early Repayment - performs repayment of current and future debt in the order specified in the contract's loan product for the amount of unaccepted cash flow on the contract.

Repayment with Prepayment – performs repayment of current debt, as well as distribution of excess payment to Prepayment on Principal or Interest according to the order specified in the loan contract (prepayment offset method).

Contract Processing – performs debt accrual as of the processing date on the contract, according to the settings established in the contract.

Processing with Prepayment Offset - performs debt accrual as of the contract processing date, as well as offset of existing prepayment balance against the amount of accrued debt already due for repayment, according to the settings established in the contract.

Processing without Penalties - performs debt accrual (EXCEPT PENALTIES!) as of the processing date on the contract, according to the settings established in the contract

Processing with Additional Accrual - performs debt accrual as of the contract processing date, but calculated "until the end date of the current tranche," i.e., debt for the future period until the end of the tranche is actually calculated and accrued as of the processing date.

Processing with Additional Accrual without Penalties - performs debt accrual (EXCEPT PENALTIES!) as of the contract processing date, but calculated "until the end date of the current tranche," i.e., debt for the future period until the end of the tranche is actually calculated and accrued as of the processing date.

Processing with Early Prepayment Offset – performs: 1) current debt accrual; 2) prepayment offset and repayment using it for not only current but also future debt

Processing with Prepayment Offset and Schedule Recalculation - performs: 1) current debt accrual; 2) prepayment offset against current debt (due for payment); 3) Schedule recalculation for the remaining principal amount with annuity payment change only under certain conditions!

Prolongation – extends the schedule for the prolongation period specified in the loan contract ("Prolongation Period" field).

Mandatory Interest Accrual – Accrual of interest mandatory for accrual upon full early repayment. The number of days (starting from the disbursement date!) for which accrual must be performed is specified in the contract's loan product in the "Mandatory Interest Accrual Period" field.

Transfer of Prepayment from Interest to Principal – transfers Prepayment from Interest to Principal for the full amount of Interest Prepayment available as of the process date.

The need for this process arises if previously Prepayment amounts were distributed according to the Schedule, but at a certain point the contract needs to be repaid early. Since the remaining Principal can only be repaid using existing Principal Prepayment (not Interest), the prepayment transfer must be performed.

Early Prepayment Offset – performs prepayment offset and repayment of all debt (current and future) for the amount of existing prepayment.

Transfer of Interest to Deferred Interest - performs write-off of accrued interest from one tranche and accrual of the same amount on the next tranche, but as "Deferred Interest" type, for example, to postpone the overdue status until the next tranche.

Stop Interest/Penalty Accrual – stops interest accrual from the process date by adding an indicator according to which accruals on the contract are not performed

Start Interest/Penalty Accrual – resumes accruals from the process date. Important!!! For the period from the stop date to the resume date, accrual amounts are not restored! I.e., the period between these processes remains without accruals.

Schedule Recalculation – performs Schedule recalculation for the remaining principal, only on the scheduled tranche repayment date, provided the loan contract has the "Schedule Recalculation on Scheduled Payment Date" indicator

Assignment Closure – performs balance write-off on the contract as of the process date and sets the closure status to "Written Off by Assignment"

Interest Accrual until Loan End – performs interest accrual on the contract according to the Payment Schedule for the entire future period until the end of the term as of the process date.

Forced Schedule Recalculation – performs Payment Schedule recalculation on the scheduled payment date with annuity amount recalculation, without checking settings in the loan product

Repayment Fee Accrual – performs repayment fee accrual. The fee amount is calculated at the rate specified in the Banks directory. The process is included in auto-acceptance if necessary.

Discounting – performs Discount amount accrual, provided the contract's loan product has the "Discounting" indicator

IFRS Reserve Rate Calculation – determines the rate for IFRS reserve by running the decision-making system on the contract and records the rate in the contract in the "IFRS Reserve Rate" field

IFRS Reserve – performs reserve accrual according to the IFRS reserve rate specified in the contract.

Regulatory Reserve - performs reserve accrual on the contract based on settings entered in the directories: Loan Categories, Delinquency Levels, Asset Classification by Score. The process performs accruals only when run on the last day of the month.