Adding Utilizations to Credit Facilities

A credit facility utilization is a contract opened for banking products attached to the facility. You can add utilizations to a credit facility record when the record has the Approved status.

Follow these steps to add utilizations to a credit facility record:

  1. On the Credit Facility page, double-click the desired credit facility with Approved status to edit it.

  2. Select the Credit Facility Utilizations tab.

  3. Click the Insert button in the Facility Utilizations section to open the Insert credit Utilization page.

  4. Fill in the following fields in the Insert credit Utilization page:

  5. Field Required Data Type Details
    Customer Yes Lookup Select the customer who will become the owner of this utilization. The list is already filtered to display only the customers entered as participants in the credit facility.
    Banking Product Yes Lookup Choose the banking product which is the object of this credit facility utilization. The list is already filtered to display only the banking products attached to the credit facility.
    Contract No Lookup You can select an existing contract of the same customer containing the selected banking product where you can attach this credit facility utilization. The list is already filtered to display only the selected customer's contracts that contain that same banking product.
    NOTE
    The contract's start date cannot precede the utilization's start date.
    If no contract is selected, Core Banking automatically creates a new contract for this credit facility utilization.
    Currency No Lookup This is a read-only field displaying the selected banking product's defined currency.
    Exchange Rate No Numeric This is a read-only field displaying the exchange rate for the selected banking product's currency.
    Utilization amount Yes Numeric Enter the amount to be disbursed through this utilization, expressed in the selected banking product's currency.
    Utilization In Facility Currency No Numeric This is a read-only field displaying the utilization amount expressed in the credit facility's currency, calculated using the exchange rate displayed above.
    Facility Documents No File Add any credit facility utilization documents needed in this field, either by dragging and dropping the file, or by clicking the Add file button and selecting the desired file.
  6. Click the Save and Reload button at the top right corner of the page. After saving the credit facility, other fields of the Insert credit Utilization page become visible and can be completed.

  7. Fill in the following fields in the Utilization details section:

  8. Field Required Data Type Details
    Product Interest Yes Lookup Select the product interest applicable for this utilization. The list is already filtered to display only the interests defined for the selected banking product.
    Total Interest Rate Yes Numeric This field displays the total interest rate of the utilization, as it was calculated for the selected banking product. You can edit the value.
    Minimum Interest Rate No Numeric Enter a minimum interest rate applicable for this utilization, if needed.
    Margin No Numeric Enter a margin applicable for this utilization, if needed.
    Reference Rate Date Yes Invariant Date Select from the calendar the date for the exchange reference rate to be used for utilization amount calculation, when the selected banking product was defined with a currency different from the credit facility's currency.
    Reference Rate Yes Numeric This field displays the value of the selected exchange reference rate. You can edit the value.
    Contract Period Yes Numeric This field displays the contract period in days, as it was defined for the selected banking product. You can edit the value.
    Schedule Type Yes Lookup Select the schedule type applicable for this utilization. The list is already filtered to display only the schedule types defined for the selected banking product.
    Repayment Due Day Yes Numeric This field displays the day in the month when the repayment is due, as it was defined for the selected banking product. You can edit the value.
    Installment Method Yes Option set This field displays the installment calculation method, as it was defined for the selected banking product. You can edit the value, selecting one of the possible values:
    • Actual Period - The first installment should be paid on the this month's repayment due date.
    • Next Period - The first installment should be paid on the next month's repayment due date.
    Current account Yes Lookup Select the current account for disbursing the amount for this utilization. The list is already filtered to display only the bank accounts opened in the facility’s currency for the selected customer.
  9. Click the Save and Close button at the top right corner of the page.
    The utilization record is saved in Draft status.

  10. Double-click the utilization and send it to approval by changing its status to Send to Approved.

For more details on how to perform a change of status, read the Changing Credit Facility Statuses section.

IMPORTANT! Each facility utilization must be approved by a user with credit facility utilization approval competencies, otherwise the disbursement of the utilization will not be performed by the system.
At any given time, the available amount of the credit facility = the facility amount - (the sum of all approved utilizations expressed in the facility's currency).