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Assets and collaterals

About assets

If the borrower is applying for secured loans, such as mortgage or vehicle loans, the loan must include collateral assets.

Origination flow

Asset

An asset can be added to a loan application or loan offer.

Collateral agreement

  • When a loan offer is accepted, and there is an asset related to an offer, then a collateral agreement is automatically created with a loan contract.

  • If a loan offer is accepted and there is no related asset, you can create a collateral agreement manually and add it to the loan contract.

In this guide, you will find information on how to manage the assets and collaterals in the BackOffice:

  • Create assets,

  • Add new assets,

  • Add existing assets,

  • Search assets,

  • Edit asset details,

  • Create collateral agreement,

  • Find collateral agreement,

  • Edit collateral agreement,

  • Sign collateral agreement,

  • Discard collateral agreement,

  • Close collateral agreement.

Asset parameters

Asset

Field name
Type
Description

Asset type*

List

Select the asset type from the list. The available values are:

  • Vehicle,

  • Commercial pledge,

  • Real estate,

  • Security,

  • Deposit.

Asset class*

List

Select the asset class.

Note that the asset class is a configurable parameter. You can add your values by going to:

  • Administration > Settings > Lookups.

  • In the content menu search for Collateral > Asset class.

  • Configure new values for the asset class parameter.

See more information about .

A selected asset class may offer/ require submitting additional custom fields, if this feature is configured for a client. See the Custom fields and lookups chapter for more information.

Owners

Fill in the Owners parameters and click the Add person button to select an existing person or create a new person.

If required, it is possible to set multiple persons sharing ownership of an asset. Once you selected one of the owners, repeat the process by clicking the Add person button and selecting other owner.

Field name
Type
Description

Ownership type*

List

Select the type of asset ownership. Note that the ownership type is a configurable parameter. You can add your values by going to:

  • Administration > Settings > Lookups.

  • In the content menu search for Collateral > Asset ownership.

  • Configure new values for the asset ownership parameter.

See more information about .

Ownership size*

Number

Enter the asset ownership percentage.

Owner name*

Text

This field will be autofilled when the owner person is selected.

Identification number*

Number/ Text

This field will be autofilled when the owner person is selected.

Evaluations

Field name
Type
Description

Value type*

List

Select the asset value type.

Note that the value type is a configurable parameter. You can add your values by going to:

  • Administration > Settings > Lookups.

  • In the content menu search for Collateral > Asset evaluation.

  • For the Lookup type choose TYPE.

  • Configure new values for the value type parameter.

See more information about .

Amount*

Number

Enter the asset value amount and currency. Note that the asset evaluation currency must match the target loan currency code.

Evaluation date*

Date

Select the date when the asset evaluation was performed.

Evaluator

List

Select the asset evaluator. Note that the evaluator is a configurable parameter. You can add your values by going to:

  • Administration > Settings > Lookups.

  • In the content menu search for Collateral > Asset evaluation.

  • For the Lookup type choose EVALUATOR.

  • Configure new values for the evaluator parameter.

See more information about .

Insurance

Field name
Type
Description

Insurance company*

Text/ Number

Enter the name of the insurance company. Note that the insurance company is a configurable parameter. You can add your values by going to:

  • Administration > Settings > Lookups.

  • In the content menu search for Collateral > Asset insurance.

  • Configure new values for the insurance company parameter.

See more information about .

Agreement number*

Number/ Text

Enter the number of the insurance agreement.

Amount*

Number

Enter the insurance amount and select currency.

Start date*

Date

Select the date when the asset was insured.

End date*

Date

Select the insurance end date.

Description

Text/ Number

Enter additional information about the insurance.

Liabilities

Field name
Type
Description

Pledgee*

Text/ Number

Enter pledgee full name.

Pledge amount*

Number

Enter the pledge amount and currency.

Rank*

Number

Enter the asset rank.

Loan type code

List

Select the loan type code. Note that the loan type code is a configurable parameter. You can add your values by going to:

  • Administration > Settings > Lookups.

  • In the content menu search for Collateral > Asset liability.

  • Configure new values for the asset liability parameter.

See more information about .

Loan amount

Number

Enter the loan amount.

Description

Text/ Number

Enter additional information about the pledge.

BackOffice users with the CREATE_ASSET privilege can create new assets.

lookups
lookups
lookups
lookups
lookups
lookups

Collateral agreement

A collateral agreement binds existing assets or personal suretyship to the loan contract as collateral. It consists of the following steps:

  1. Creating or selecting an asset or suretyship person.

  2. Connecting asset/suretyship to the loan contract.

  3. Signing collateral agreement.

If you add an asset to a loan application/offer, the collateral agreement is automatically created and connected to the particular loan contract when the loan offer is accepted. In this case, you can edit a collateral agreement and sign it.

Create with suretyship

To create a collateral agreement with suretyship:

  1. Collateral > Create collateral agreement.

  2. Click Suretyship to add a new or find an existing person.

  1. Create or find an existing person.

  1. Click on the Identification number to select a particular person.

  2. Bind loan contract to person. Find an existing loan contract.

  1. Click on the Contract number to select a loan contract that requires suretyship.

  2. Enter the suretyship limit amount and description > Create.

Create with asset

To create a collateral agreement with asset:

  1. Collateral > Create collateral agreement.

  2. Click Asset to add a new one or find an existing asset.

  1. or .

  1. Click on the particular Asset ID to select the asset.

  2. Search for the loan contract that requires an asset.

  1. Click on the Contract ID to select a loan contract that requires an asset.

If there are multiple ownerships related to an asset you must select the relevant ownership.

  1. Click Create.

Note that Agreement details section is custom and can be configured according to the needs of your organisation. See more in the .

Search for an existing asset
Create a new asset
custom fields and lookups section

Sign collateral agreement

To sign a collateral agreement you need to open it. You can open the collateral agreement via the Collaterals, Loans menu, Person module and Asset details.

  1. Collateral > Search agreements.

  2. Find the collateral agreement in question.

  3. Click the Agreement ID to open the collateral agreement.

  4. Click the Sign agreement button.

  5. Select the Signing date. If required, you can add notes and documents > Sign.

  1. Find a loan contract in question.

  2. From the content menu, choose Collateral.

  3. Click the Collateral agreement ID.

  4. Click the Sign agreement button.

  5. Select the Signing date. If required, you can add notes and documents > Sign.

  1. Find a person who is related to an agreement as a suretyship or collateral asset owner.

  2. Access the person details.

  3. From the content menu choose Collaterals.

  4. Click the Agreement number.

  5. Click the Sign agreement button.

  6. Select the Signing date. If required, you can add notes and documents > Sign.

  1. Find asset that is used as a collateral.

  2. Access asset details page.

  3. Scroll to the Collateral agreements section.

  4. Click the Agreement number to access the collateral agreement information.

  5. Click the Sign agreement button.

  6. Select the Signing date. If required, you can add notes and documents > Sign.

It is only possible to sign a collateral agreement in the Preparing status only.

BackOffice users with the SIGN_COLLATERAL_AGREEMENT privilege can sign collateral agreements.

Close collateral agreement

To discard a collateral agreement you need to open it. You can open the collateral agreement via the Collaterals or Loans menu:

  1. Collateral > Search agreements.

  2. Find the collateral agreement in question.

  3. Click the Agreement ID to open the collateral agreement.

  4. Click the Close agreement button.

  5. Select the Closing date and Closing reason. If required, you can add a comment > Close.

  1. Find a loan contract in question.

  2. From the content menu, choose Collateral.

  3. Click the Collateral agreement ID.

  4. Click the Close agreement button.

  5. Select the Closing date and Closing reason. If required, you can add a comment > Close.

  1. Find a person who is related to an agreement as a suretyship or collateral asset owner.

  2. Access the person details.

  3. From the content menu choose Collaterals.

  4. Click the Agreement number.

  5. Click the Close agreement button.

  6. Select the Closing date and Closing reason. If required, you can add a comment > Close.

  1. Find asset that is used as a collateral.

  2. Access asset details page.

  3. Scroll to the Collateral agreements section.

  4. Click the Agreement number to access the collateral agreement information.

  5. Click the Close agreement button.

  6. Select the Closing date and Closing reason. If required, you can add a comment > Close.

Note that the Closing reason parameter is a custom lookup code. You can manage its values by going to Administration > Settings > Lookups > COLLATERAL > Collateral agreement. Choose lookup type CLOSE_REASON.

You can close the collateral agreement in the signed status only.

Find collateral agreement

There are different ways of finding collateral agreement:

  1. ,

  2. ,

  3. ,

  4. .

Find collateral agreement via Collateral menu

  1. Collateral > Search agreements.

  2. Fill in the search parameters > Search.

  3. Click the Agreement ID to access the collateral agreement details.

Find collateral agreement via Asset details

  1. that is used as a collateral.

  2. Access asset details page.

  3. Scroll to the Collateral agreements section.

  4. Click the Agreement number to access the collateral agreement information.

Find collateral agreement via Loan contracts

  1. that is bound to some collateral through agreement.

  2. Access the loan contract details.

  3. From the content menu choose Collateral.

  4. Click the Agreement number to access the collateral agreement details.

Find collateral agreement via Person details

  1. who is an owner of some collateral asset or is related as a suretyship to any agreement.

  2. Access the person details.

  3. From the content menu choose Collaterals.

  4. Click the Agreement number to access the collateral agreement details.

Via Collateral menu
Via Asset details
Via Loan contracts
Via Person details
Find asset
Find the secure loan contract
Find person

Discard collateral agreement

To discard a collateral agreement you need to open it. You can open the collateral agreement via the Collaterals, Loans menu, Person module and Asset details.

  1. Collateral > Search agreements.

  2. Find the collateral agreement in question.

  3. Click the Agreement ID to open the collateral agreement.

  4. Click the Discard agreement button.

  5. Select the Discarding reason. If required, you can add a comment > Discard.

  1. Find a loan contract in question.

  2. From the content menu, choose Collateral.

  3. Click the Collateral agreement ID.

  4. Click the Discard agreement button.

  5. Select the Discarding reason. If required, you can add a comment > Discard.

  1. Find a person who is related to an agreement as a suretyship or collateral asset owner.

  2. Access the person details.

  3. From the content menu choose Collaterals.

  4. Click the Agreement number.

  5. Click the Discard agreement button.

  6. Select the Discarding reason. If required, you can add a comment > Discard.

  1. Find asset that is used as a collateral.

  2. Access asset details page.

  3. Scroll to the Collateral agreements section.

  4. Click the Agreement number to access the collateral agreement information.

  5. Click the Discard agreement button.

  6. Select the Discarding reason. If required, you can add a comment > Discard.

Note that the Discarding reason parameter is a custom lookup code. You can manage its values by going to Administration > Settings > Lookups > COLLATERAL > Collateral agreement. Choose lookup type DISCARD_REASON.

You can discard the collateral agreement in the preparing status only.

Custom fields and lookups

When setting up assets and loans you can create custom fields and add custom lookups to be able to add your customised values.

To add custom fields related to assets/collateral agreements, go to:

  1. Administration > Settings > Custom fields.

  2. From the content menu, choose Collateral > Asset or Collateral agreement.

    • Click Add field set to add a new field set.

    • Click Add field to create new fields inside of existing field sets.

For more information about custom fields, see the custom fields guide.

To add lookups for assets/collaterals, go to:

  1. Administration > Settings > Lookups.

  2. From the content menu, choose COLLATERAL and select the required lookup category:

    • Asset,

    • Asset class,

    • Asset evaluation,

    • Asset insurance,

    • Asset liability,

    • Asset ownership,

    • Collateral agreement,

    • Collateral type,

    • Real estate,

    • Vehicle.

  3. Once on the lookup page, select required lookup type and click the plus icon to add new lookup values.

For more information about lookups management, see the .

Asset

Asset types

One of the following property types can be used to create an asset:

  • Real estate,

  • Vehicle,

  • Commercial pledge (document),

  • Security,

  • Deposit.

Create new asset

You can create a new asset via the Collateral menu:

  1. Collateral > Create asset > fill in the asset details.

  2. Select the asset type, asset class and provide other asset related details.

  1. Fill in the information about the asset owners and click the Add person button to find the corresponding person.

If the asset has joint ownership, you can add multiple asset owners. For example, if spouses jointly share the ownership of a house.

  1. Fill in the parameters for the following sections:

    • Evaluations,

    • Insurances,

    • Liabilities.

  1. Click Create.

Search assets

  1. Collateral > Search assets.

  2. Fill in the search parameters > Search.

  3. Click the Asset ID to view the asset information.

Add new asset

You can also add a new asset for a loan application or loan offer:

  1. Find the loan application in question.

  2. On the loan application page, scroll to the Assets section.

  3. Click the plus icon > Add new.

  4. Fill in the asset parameters accordingly > Create.

  1. Find the loan offer in question.

  2. Edit the loan offer by clicking the Edit button.

  3. From the content menu choose Collateral.

  4. On the Offer collateral page, click the plus icon > Add new.

  5. Fill in the asset parameters accordingly > Create.

You can modify the loan offer details until the loan offer is accepted and the loan contract is created.

Add existing asset

To connect an existing asset to a loan application or loan offer:

  1. Find the loan application in question.

  2. On the loan application page, scroll to the Assets section.

  3. Click the plus icon > Add existing.

  4. Find the required asset > click the Asset ID.

  5. On the asset details page select if the asset is acquired or not.

  6. Click Bind to connect asset to the loan application.

  1. Find the loan offer in question.

  2. Edit the loan offer by clicking the Edit button.

  3. From the content menu choose Collateral.

  4. On the Offer collateral page, click the plus icon > Add existing.

  5. Find the required asset > click the Asset ID.

  6. On the asset details page select if the asset is acquired or not.

  7. Click Bind to connect asset to the loan offer.

Edit assets

  1. Find the asset in questions.

  2. To modify the asset parameters you can do one of the following:

    • Click the Edit button, modify data > Save.

    • Click the icon > update the details > Change.

    • Add new data > Save.

    • Click the Delete button/ cross sign to remove the data that is not necessary.

  • Also, you can modify the liability status by ticking or unticking the status box:

Find collateral agreement details

These instructions only apply to the assets that are used as collaterals.

Once asset is used as the collateral, you can find the links to the collateral agreements and loan contracts where this asset is used.

To find collateral agreement details:

  1. Find asset.

  2. Scroll to the Collateral agreements section.

  3. For more details, click:

    • Agreement number - to view the collateral agreement.

    • Credit contract - to view the loan contract.

Edit collateral agreement

To edit an existing collateral agreement:

  1. Find the collateral agreement in question.

  2. Modify the collateral agreement by clicking the icon.

On the collateral agreement page, you can modify some of the following parameters:

  • Collateral agreement number,

  • Collateral amount,

  • Pledge amount,

  • Suretyship limit,

  • Custom fields (if there are related custom fields to the collateral agreement).

When you edit the collateral amount, the system shows a maximum collateral amount as a hint.

Also, you can add or remove:

  • Collateral,

  • Collateral usage,

  • Suretyship.

You can only modify and add usages until the collateral agreement is signed.

lookups guide