PPF Loan Account Opening in DOP Finacle

                         PPF LOAN ACCOUNT OPENING PROCEDURE 

Scenario:-

• A customer has PPF(Public Provident Fund) account. He/She wants a loan against the PPF account. 
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Eligibility of loan against PPF account

• A subscriber of PPF account shall not be entitled to get a fresh loan till the earlier loan is fully repaid along with the interest.
• Loan can be granted only when the PPF account is between 3rd financial year and 5th financial year from the date of opening of PPF account.
• For example PPF a/c date 30th June 2012
• Loan can be granted from starting from 1st April 2014 till 31st march 2018.
• Loan accounts can be opened only for individuals not for joint holders
• After the principal amount is fully repaid, interest to be paid, in not more than two monthly installments.
• For loan against PPF, amount not exceeding 25% of the balance amount that stood to his credit at the end of second year immediately preceding the year in which the loan is applied for.
• Interest is charged at 2% if the repaid within 36 months and at 6% if repaid on the outstanding loan after 36 months.

Step by Step process:-

• Invoke the menu option CLPPFAO to open a loan account against PPF account then select the function as "open" then give the PPF account number then the system auto fills the CIF id of the customer

Then click on GO then the system will display the details of the PPF customer.

Then finally click on submit then the system will generate the loan account for PPF account suffixed by 1.

Verification of Loan against PPF account:-

• The menu option for verification of loan against PPF account isCLPPFAOV.
• Invoke the menu CLPPFAOV then select the function as Verify and give the PPF loan account number.

Then click on Go then the system will display the details then finally click on submit to verify the same.

Disbursement of PPF Loan account:-

• The menu option used for disbursement of loan against PPF account is CPWTM.
• Invoke the menu CPWTM then select the following.

1. Select the function code as "ADD".
2. Select the column Tran type/Sub type as"C/NP cash normal payment" if amount is less than 20000 and "T/CI customer transfer" if the amount is more than 20000.
3. Select the type column as "L-Loan Disbursement" 

Then click on Go then enter the Account number(Dr) column i.e., enter the PPF account number then the system auto fills the loan amount eligible for the PPF account .

Then finally click on submit then the amount get disbursed the same can be inquired using the menu option HACCBAL in which Lien amount column will be the loan amount given to the customer.