Valluvanad Money · LMMS — Loan Mapping and Management System

Add-On Loan Close & Regroup Transaction
Worked Example for Client Review

Complete transaction flow with sample values and step-by-step calculations

DocumentWorked Example — Regroup Transaction

VersionDraft 0.2 — for review

Date08/07/2026

Companion toRequirement note "Add-On Loan close and regroup GL"

1What the Regroup Transaction Does

Today, when a customer with an existing Gold Loan (GL) lot and an Add-On Loan pledges new gold, the only option is to open a separate new lot with a separate new Add-On Loan. It is not possible to close or combine the existing arrangement into the new one.

The proposed Regroup Transaction is a single transaction, under a single approval, with two legs:

Closing Leg

The existing Add-On Loan is always fully closed (settled in full, principal + interest).
Closing the linked GLs is optional — the user may close one, several, all, or none.

New Lot Leg

One or more new GLs are pledged and created.
A fresh Add-On Loan is created, linked to the new GL(s) plus any GLs kept open from the closing leg.

One combined Net Cash Flow is shown to the branch: New Lot Amount − Total Closing Leg Amount (positive = payable to customer; negative = customer brings in the shortfall).

How Add-On eligibility is calculated (current system standard — net basis)

The Gold Rate master holds a net headroom rate per gram, which is applied directly to the pledged weight. The GL disbursement amount is not deducted — only the weight matters:

Standard Eligibility = Pledged Weight (g) × Active Rate per gram Maximum Permissible Amount = CEILING(Eligible ÷ Rounding Unit) × Rounding Unit

For the Regroup Transaction, the eligibility of the new Add-On Loan is:

Eligible Amount = Standard Eligibility of NEW GL(s) + Current Add-On Outstanding (principal) − Proportionate Principal of the GLs being CLOSED

In words: the new gold contributes fresh headroom, and the slice of the existing Add-On Loan that was riding on the retained GLs is carried into the new Add-On Loan. Retained GLs are not re-appraised for fresh headroom — they carry over only their share of the existing outstanding.

2Sample Data Used Throughout

Master data
Parameter	Value
Active rate per gram (net headroom rate, applied directly)	₹525 / g
Rounding Unit	₹5,000
Configured Cut-off Date (applies to the Add-On Loan only)	01/01/2026

Customer C-005 — existing position (Lot 1): two GLs mapped to Add-On Loan 1.

Lot 1 at time of original approval (01/03/2026)
GL	Weight	Disbursement	Loan Date	Allocation Ratio (weight-based)
GL-A	60 g	₹2,40,000	15/02/2026	60 ÷ 100 = 60%
GL-B	40 g	₹1,60,000	20/02/2026	40 ÷ 100 = 40%
Total	100 g	₹4,00,000	—	100%

At approval, eligibility was 100 g × ₹525 = ₹52,500, rounded up to a Maximum Permissible of ₹55,000. Add-On Loan 1 was approved for ₹55,000 and disbursed on 01/03/2026. The customer has since repaid ₹5,000 of principal.

Position today (08/07/2026) — figures keyed in by branch user
Item	Principal	Interest	Total
GL-A outstanding	₹2,00,000	₹14,000	₹2,14,000
GL-B outstanding	₹1,30,000	₹9,000	₹1,39,000
Add-On Loan 1 outstanding	₹50,000	₹3,500	₹53,500

New pledge: the customer brings gold for a new GL-D — 50 g, disbursement ₹2,40,000, dated 08/07/2026.

3Scenario A — Main Case: Close GL-A, Retain GL-B, New GL-D

The customer closes GL-A, keeps GL-B open, pledges GL-D, closes Add-On Loan 1, and requests a fresh Add-On Loan 2 linked to GL-D + GL-B. To keep the illustration simple, every scenario requests exactly the Eligible Amount.

Step 1 — Cut-off date check (Add-On Loan only)

The cut-off applies only to the existing Add-On Loan — GL loan dates are not checked. Add-On Loan 1 was disbursed on 01/03/2026, which is after the cut-off of 01/01/2026, so the lot is selectable. A lot whose Add-On Loan was disbursed on or before 01/01/2026 would be Blocked from this transaction window.

Step 2 — Closing Leg

Item	Principal	Interest	Total
GL-A settlement (being closed)	₹2,00,000	₹14,000	₹2,14,000
Add-On Loan 1 — full settlement (always fully closed)	₹50,000	₹3,500	₹53,500
Total Closing Leg Amount	₹2,50,000	₹17,500	₹2,67,500

The eligibility deduction term — Proportionate Principal of the GLs being closed — uses the allocation ratio frozen at Lot 1 approval:

Closed-GL Principal Portion = ₹50,000 × 60% (GL-A ratio) = ₹30,000 Carried portion (rides on retained GL-B) = ₹50,000 − ₹30,000 = ₹20,000

Step 3 — Eligibility for the new Add-On Loan 2

Step	Calculation	Amount
Standard eligibility of new GL-D (net basis)	50 g × ₹525	₹26,250
+ Current Add-On outstanding (principal)		₹50,000
− Proportionate principal of closed GLs	₹50,000 × 60%	−₹30,000
Eligible Amount	26,250 + 50,000 − 30,000	₹46,250
Maximum Permissible	CEILING(46,250 ÷ 5,000) × 5,000	₹50,000

Requested Add-On Loan 2 = Eligible Amount = ₹46,250 → within Maximum Permissible ₹50,000 → Valid ✓

Reading of the figure: ₹26,250 is genuinely new headroom from GL-D; ₹20,000 is the existing exposure carried over on retained GL-B and refinanced inside the new Add-On Loan.

Step 4 — Net Cash Flow

Item	Amount
New GL-D disbursement	₹2,40,000
New Add-On Loan 2	₹46,250
New Lot Amount	₹2,86,250
Less: Total Closing Leg Amount (Step 2)	−₹2,67,500
Net Cash payable to Customer	₹18,750

Step 5 — Revised % and position after approval

The new Add-On Loan 2 is linked to GL-D (50 g) and retained GL-B (40 g) — 90 g in total. New allocation ratios, frozen at approval:

GL in new Lot 2	Weight	Revised Ratio
GL-D (new)	50 g	50 ÷ 90 = 55.56%
GL-B (retained from Lot 1)	40 g	40 ÷ 90 = 44.44%
Total	90 g	100%

Item	Status after approval	Note
GL-A	Closed	Settled in the closing leg
Add-On Loan 1	Fully Closed	Always fully closed in this transaction — even though GL-B stays open
GL-B	Open — re-mapped	Moves from Lot 1 to new Lot 2; the loan itself is untouched
GL-D	New	50 g, ₹2,40,000
Add-On Loan 2	Active	₹46,250; ratios GL-D 55.56% / GL-B 44.44%

4Scenario B — All Existing GLs Closed

Same position, but the customer closes both GL-A and GL-B along with Add-On Loan 1, and requests Add-On Loan 2 against GL-D alone — again for exactly the Eligible Amount of ₹26,250.

Closing Leg
Item	Total (P + I)
GL-A settlement	₹2,14,000
GL-B settlement	₹1,39,000
Add-On Loan 1 — full settlement	₹53,500
Total Closing Leg Amount	₹4,06,500

Eligibility — deduction now covers 100% of the outstanding
Step	Calculation	Amount
Standard eligibility of new GL-D	50 g × ₹525	₹26,250
+ Current Add-On outstanding (principal)		₹50,000
− Proportionate principal of closed GLs	₹50,000 × (60% + 40%)	−₹50,000
Eligible Amount		₹26,250
Maximum Permissible	CEILING(26,250 ÷ 5,000) × 5,000	₹30,000

Consistency check: when every existing GL is closed, the carried portion cancels out and eligibility reduces to the new GL alone — exactly the existing Combined Transaction behaviour.

Net Cash Flow
Item	Amount
New Lot Amount (₹2,40,000 + ₹26,250)	₹2,66,250
Less: Total Closing Leg Amount	−₹4,06,500
Net Shortfall — payable BY customer	−₹1,40,250

The net figure is negative, so the customer must bring in ₹1,40,250 for the transaction to proceed. The branch confirms this with the customer before submitting for approval.

After approval: GL-A, GL-B, Add-On 1 all Closed; new Lot 2 = GL-D New with Add-On Loan 2 ₹26,250, ratio 100%.

5Scenario C — No GLs Closed (Pure Add-On Refinance)

The customer keeps both GL-A and GL-B open, pledges GL-D, and only replaces the Add-On Loan: Add-On 1 is closed and a larger Add-On Loan 2 is taken against all three GLs — for the Eligible Amount of ₹76,250.

Closing Leg — Add-On settlement only
Item	Total (P + I)
Add-On Loan 1 — full settlement	₹53,500
Total Closing Leg Amount	₹53,500

Eligibility — nothing deducted, full outstanding carried
Step	Calculation	Amount
Standard eligibility of new GL-D	50 g × ₹525	₹26,250
+ Current Add-On outstanding (principal)		₹50,000
− Proportionate principal of closed GLs	no GLs closed	₹0
Eligible Amount		₹76,250
Maximum Permissible	CEILING(76,250 ÷ 5,000) × 5,000	₹80,000

Requested = Eligible Amount = ₹76,250 ≤ Maximum Permissible ₹80,000 → Valid ✓

Net Cash Flow
Item	Amount
New Lot Amount (₹2,40,000 + ₹76,250)	₹3,16,250
Less: Total Closing Leg Amount	−₹53,500
Net Cash payable to Customer	₹2,62,750

Revised % — new Lot 2 spans all three GLs (150 g)
GL in new Lot 2	Weight	Revised Ratio
GL-D (new)	50 g	33.33%
GL-A (retained)	60 g	40.00%
GL-B (retained)	40 g	26.67%
Total	150 g	100%

6Transaction Flow Summary

#	Step	Performed by
1	Select customer and existing lot — cut-off date filter applied to the lot's Add-On Loan (GL dates are not checked)	Branch user
2	Tick GLs to close vs retain; key in outstanding P + I for GLs being closed and for the Add-On Loan (settled in full)	Branch user
3	Enter new GL(s): weight, disbursement amount, loan date	Branch user
4	System computes eligibility (Section 1 formula), Maximum Permissible, and validates the requested new Add-On amount	System
5	System shows combined Net Cash Flow; branch confirms with customer (especially if a shortfall)	System / Branch
6	Submit — one transaction covering both legs goes for a single approval	Branch user
7	On approval: closing leg processed, old Add-On fully closed, retained GLs re-mapped, new lot created with revised ratios frozen	Approver / System

7Formula Summary

-- Standard eligibility (net basis, current system standard) -- Standard Eligibility = Pledged Weight × Active Rate per gram Maximum Permissible = CEILING(Eligible ÷ Rounding Unit) × Rounding Unit -- Regroup: Closing Leg -- Closing Leg Amount = Σ(Closed GL Outstanding P+I) + Add-On Outstanding P+I (settled in FULL) Closed Principal Portion = Add-On Outstanding Principal × Σ(Ratios of closed GLs) -- Regroup: New Add-On Eligibility -- Eligible Amount = (New GL Weight × Rate) + Add-On Outstanding Principal − Closed Principal Portion -- Net Cash Flow -- New Lot Amount = Σ(New GL Disbursements) + New Add-On Amount Net Cash Flow = New Lot Amount − Closing Leg Amount (negative = customer pays the shortfall) -- Revised % (frozen at approval of the new lot) -- Ratio (each GL in new lot) = GL Weight ÷ Total Weight of new lot (new GLs + retained GLs) -- Cut-off eligibility for selection -- Lot selectable = Add-On Loan Disbursement Date > Configured Cut-off Date (GL loan dates are NOT checked)

8Points for Confirmation

Please confirm the following interpretations. The calculations above assume the answer shown in bold.

"Current Outstanding" in the eligibility formula: principal only. Interest on the old Add-On Loan is always collected in cash through the closing leg and is never refinanced into the new Add-On Loan.
Retained GLs: they contribute only their carried share of the existing outstanding — they are not re-appraised for fresh headroom at the current rate, even if the rate has risen since their lot was approved.
Existing Add-On Loan: always fully closed in this transaction — there is no partial replacement variant.
Scenario C (no GLs closed): confirm this variant is permitted — i.e. the transaction may close only the Add-On Loan while retaining every GL.
Cut-off date scope (as clarified): the configured cut-off applies only to the existing Add-On Loan's disbursement date; a lot whose Add-On Loan was disbursed on or before the cut-off cannot be selected. GL loan dates are not checked.
Allocation ratio basis: gold weight (GL weight ÷ total lot weight), consistent with the current system. Retained GLs use their originally recorded weight.
Net Cash Flow: the New Lot Amount includes the new Add-On Loan amount in addition to the new GL disbursement(s), matching the current Combined Transaction behaviour.
Approval: one single approval covers both legs; a return or rejection cancels the entire transaction (neither leg is processed).

9Approval & Sign-off

Approval of this document confirms the calculation method, the transaction flow, and the answers to Section 8, and authorises the start of development.

Prepared bySyut Technologies
Date: 08/07/2026

Reviewed by (Client)Name / Designation
Date: ____________

Approved by (Client)Name / Signature
Date: ____________

Add-On Loan Close & Regroup TransactionWorked Example for Client Review

1What the Regroup Transaction Does

Closing Leg

New Lot Leg

How Add-On eligibility is calculated (current system standard — net basis)

2Sample Data Used Throughout

3Scenario A — Main Case: Close GL-A, Retain GL-B, New GL-D

Step 1 — Cut-off date check (Add-On Loan only)

Step 2 — Closing Leg

Step 3 — Eligibility for the new Add-On Loan 2

Step 4 — Net Cash Flow

Step 5 — Revised % and position after approval

4Scenario B — All Existing GLs Closed

5Scenario C — No GLs Closed (Pure Add-On Refinance)

6Transaction Flow Summary

7Formula Summary

8Points for Confirmation

9Approval & Sign-off

Add-On Loan Close & Regroup Transaction
Worked Example for Client Review