Applicant-Wise Loan Security Exposure

Overview

Applicant-Wise Loan Security Exposure

Module: Loan Management
Report Type: Analytical / Management Report

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1. What Business Information This Report Provides

The Applicant-Wise Loan Security Exposure report gives a consolidated view of loan security exposure for each applicant.
It shows how much value of security (such as deposits, assets, or guarantees) is linked to an applicant across one or more loans.

From a business perspective, this report answers key questions such as: - How much total security is currently tied to each applicant? - Which applicants have higher exposure based on pledged securities? - Is the security coverage adequate compared to the applicant’s overall borrowing?

This report helps management understand risk concentration and collateral utilization at the applicant level.

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2. When and Why to Use This Report

You should use this report when:

• Reviewing credit risk at the applicant level
• Assessing security concentration before approving new loans
• Monitoring collateral exposure for existing applicants
• Preparing for audits, inspections, or compliance reviews
• Evaluating portfolio quality and risk distribution

The report is especially useful during: - Loan approval or enhancement decisions
- Portfolio risk reviews
- Periodic credit committee meetings

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3. Key Columns and Their Business Meaning

While column names may vary slightly, the report typically includes:

• Applicant
  Identifies the customer or borrower. This is the primary grouping of the report.

• Loan Security Type
  Shows the nature of the security provided (for example, cash deposit, gold, property, or other accepted securities).
  Helps assess the quality and liquidity of collateral.

• Loan Security Reference / ID
  Identifies the specific security item linked to the applicant.
  Useful for tracking and verification.

• Security Value
  The assessed or accepted value of the security.
  Indicates the level of protection available against loan exposure.

• Allocated / Utilized Value
  Shows how much of the security value is currently used against active loans.
  Helps understand whether security is fully or partially utilized.

• Available Security Value
  The remaining value that may still be used for additional borrowing, subject to policy.

• Related Loan(s)
  Indicates which loans are backed by the security, supporting traceability.

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4. Available Filters and Their Business Purpose

Common filters include:

• Applicant
  Focus on a specific customer to review their total security exposure.

• Loan Security Type
  Analyze exposure by type of collateral to understand risk quality.

• Company / Branch
  Review exposure at a branch or business-unit level for operational control.

• Date or Status Filters
  Limit results to active or valid securities during a specific period.

These filters help management narrow the analysis and make targeted decisions.

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5. How to Interpret the Results for Business Decisions

• High Security Exposure for an Applicant
  Indicates concentration risk. Management may decide to limit further Dafater or seek additional diversification.

• Low Security Coverage vs. Borrowing
  Signals potential under-collateralization and higher credit risk.

• Large Unutilized Security Value
  Suggests room for cross-selling or upselling additional loan products, subject to policy.

• Heavy Dependence on a Single Security Type
  May require risk mitigation if the collateral type is volatile or illiquid.

This report helps balance growth objectives with risk control.

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6. Common Use Cases and Scenarios

• Before Sanctioning a New Loan
  Check whether the applicant already has significant security exposure.

• Top-Up or Enhancement Requests
  Evaluate available security value before approving additional limits.

• Credit Portfolio Review
  Identify applicants with excessive collateral concentration.

• Audit and Compliance Review
  Demonstrate transparency and control over loan security management.

• Relationship Management
  Understand high-value applicants and plan engagement or retention strategies.

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Summary

The Applicant-Wise Loan Security Exposure report is a critical management tool in Dafater’s Loan Management module.
It provides clear visibility into how securities are distributed and utilized across applicants, enabling informed decisions on risk management, loan approvals, and portfolio optimization.

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Report Information

• Module: Loan Management
• Related DocType: Loan Security
• Report Type: Script Report
• Standard: Yes