Collateral is a form of security which is pledged as a repayment of a loan in the event of a default in payment.

Each collateral that is pledged by customers or borrowers to a bank or financial institution must be linked to a collateral code created in the system. This is for the purpose of bank’s required credit regulatory or central bank’s reporting requirement.

Therefore, this function enables user to define different type of collateral and its features to be linked to each specific product of a bank or financial institution.