If your product portfolio includes funding Day Traders on the stock market for purchase of Capital Market or Money Market Securities you will need an application that can handle the documentation requirements for the customer and product.
What is Margin Funding?
Margin Funding is a short term credit facility advanced by Banks and NBFC's to Traders on the Equity and Bond Markets for the purchase of securities to make up for the shortfall of funds that the trader might encounter during the course of trading. Institutions expect that the Traders provide a 50% margin either by cash or by pledging the shares in a demat account.
AnyBank Suite and Margin Funding
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. Periodic valuation of the securities offered as collateral is undertaken and triggers are generated if the LTV falls below a certain figure. 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.