Creating A New Secured Loan

Secured loans are business or personal loans that require some type of collateral as a condition of borrowing. A financial institution can request collateral for large loans for which the funds are used to purchase a specific asset or in cases where the customer's credit scores aren’t sufficient to qualify for an unsecured loan.

Before creating a secured term loan contract, make sure that:

  • the customer is recorded in Core Banking,

  • a settlement account (a current account contract for the same customer) is set up for the desired currency,

  • the collateral is registered in Core Banking,

  • and the limits are configured according to Core Banking's setup.

To create a new secured loan contract:

After defining the relevant details of the contract, proceed to contract approval.