Lending Value 

Use

This function determines the maximum asset (collateral object) value that can be used as collateral, based on the statutory and legal requirements in the country where the collateral object is maintained.

 

If a collateral object has object parts, the system calculates the lending value for the main object and for each of the individual object parts. The total lending value of a collateral object is determined by adding up the lending values for the main object and for the individual object parts.

 

Integration

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The system uses the lending value in the calculation for the lending limit for the collateral objects and also for determining the loan to value ratios for collateral agreements.

 

Activities

The system calculates the lending value using one of the following equations:

Condition	Lending Value is Equal To
Any collateral object	Collateral object value – safety discount
Collateral-backed guarantees	Collateral right value
Non-collateral-backed guarantees	Assessment value

Example

Consider a data constellation with the following collateral objects:

Collateral object 1 (real estate) Collateral object value = 400 Safety discount = 10% Lending value = 400 – (400 * 10 / 100) = 360