ESOP Funding
If your proiduct portfolio includes funding for purchase of ESOP's to individuals you will need an application that can handle the documentation requirements for the customer and product.
What is ESOP's or Employee Stock Option Plan?
ESOP or Employee Stock Option Plans are schemes offered by companies to their employess to purchase stock options and vest them at a later date for Equity Shares at a pre-determined price. The vesting period is usually fixed at the time of the purchase of options and once the options are vested and the quity shares are issues they are usually locked-in for a specific period of time usually three years before they can be sold by the employee.
Funding for ESOP's can be advanced by a bank or NBFC and the tenure of this loan can be between 12 months to 30 months. Some institutions offer smilar kind of loans against other capital market instruments like Mutual Funds, Equity Shares of Listed Companies, Soverign Gold Bonds and Term Deposits.
AnyBank Suite and Employee Stock Option Plans
The AB Suite can handle financial products targeteted at different types of customers. Parameters are defined for a product and for the Customer Constitution. This allows us to loans against Securities like Equity Shares, Bonds and Mutual Funds of varying tenures. It also allows us to handle variations in the quantum of loan funded. The product configuration can include structured fees and levies that are not limited to Processing, Documentation and Advance EMI's. Documents are specific to the customer constitution and can include among others the
- Employment Proof
- Identity Proof
- Proof of Residence
- Income Proof (Salary Slip, IT Returns)
- Bank Statement
Computation of Eligibility Norms and Credit Norms is automatic. We also offer interfaces to credit bureaus to fetch the credit report automatically. Interest computation on Loan accounts is automatic and can be based on an amortization schedule or Daily reducing balance method. We offer ACH, PDC's and on field collections as repayment methods. We also offer payment by several payment gateways.
Delinquencies flow into the delinquent module called AB CAPE and cases are allocated based on an allocation logic. Telecalling and field visits are recorded before cases are escalated and moved to various buckets as DPD increases. Case documentation and Case filing is also supported with readymade templates. AB CAPE also offers a method to securitize loans.
