Loan Restructure Proposal workflow

  • Release version: Zurich
  • Updated July 31, 2025
  • 2 minutes to read
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    Summary of Loan Restructure Proposal workflow

    The Loan Restructure Proposal workflow enables bank agents to manage the restructuring of outstanding business or personal loans to prevent them from becoming non-performing loans. This process allows modification of loan terms such as loan duration, repayment amounts, installment counts, and interest rates. The workflow coordinates multiple roles and tasks to streamline restructuring from proposal to implementation.

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    Process Flow and Roles

    • Credit Agent: Initiates a Loan Restructure Proposal case by engaging with the customer to finalize restructuring terms. Adds key details like asset classification and restructure specifics. The system then routes tasks automatically to relevant departments.
    • Document Agent: Receives document verification tasks generated by the workflow to verify required documents. They can also request deferment if necessary.
    • Credit Authorizer: Reviews and approves the restructuring credit tasks initiated by the credit agent.
    • Customer: Reviews and accepts restructuring terms via Customer Service Portal, Consumer Service Portal, or other self-service portals. Acceptance triggers creation of a loan service case.
    • Loan Agent: Reviews and updates loan case details, verifies documents, approves loan authorization tasks, and updates the loan information in the banking system. Integration with core banking systems can automate loan updates.

    Key Features

    • Automated routing of cases and tasks to appropriate agents through assignment rules.
    • Document verification tasks generated and managed by document agents with deferment options.
    • Customer visibility and acceptance of restructuring terms through self-service portals, requiring activation of the Consumer Service Portal plugin for consumers.
    • Loan update tasks that can be automated via integration with core banking systems.
    • State and stage tracking of cases, culminating in closure upon completion with updated work notes.

    Benefits for ServiceNow Customers

    This workflow provides a structured, transparent, and automated approach for banks to manage loan restructuring efficiently, reducing the risk of loans becoming non-performing. It ensures clear role accountability, improves customer engagement through self-service portals, and supports operational efficiency with automation and integration capabilities.

    Learn how bank agents, using the Loan Restructure Proposal workflow, contact a loan customer for restructuring an outstanding loan which otherwise could turn into a non-performing loan. The workflow applies to both business and personal loans.

    A loan restructuring is an action to prevent a loan from being classified as non-performing. Banks modify the terms of the loans by changing the loan term, repayment amount, number of installments, or the rate of interest.

    The following diagram shows how the application helps bank agents handle a loan restructure.
    Figure 1. Loan Restructure workflow
    Workflow that shows how a loan restructure is handled using the Loan Operations application.

    The following workflow routes the case and tasks for a Loan Restructure to agents in different departments. The agents log in to Workspace to work on the tasks in their queue.

    As a credit agent
    1. A credit agent creates a Loan Restructure Proposal credit service case.
    2. A credit agent works with the customer and finalizes the restructuring terms. The agent adds the additional details, such as the asset classification and restructure details.
      • A workflow is triggered automatically and the assignment rules route the associated case and tasks to the appropriate back-office teams.
      • The document processor service determines the documents that must be verified for the case. The workflow generates an inbound document verification task for the document agent.
    3. A document agent works on the inbound document verification task to verify each document that is listed in the task. If required, this agent can request for a deferment of a specific document.

      The workflow generates a credit authorization task for the credit agent.

    4. A credit authorizer (credit agent) works on the credit task to review and approve it.
    As a customer or credit agent
    The customer checks the credit service case and accepts the restructuring terms. Alternatively, a credit agent can get an acceptance from the customer for the restructuring terms and close the credit service case.
    Note:
    A customer (consumer or contact) can view the case through the Customer Service Portal, Consumer Service Portal, or another self-service portal. For consumers to view a case using the Consumer Service Portal, you must have the Consumer Service Portal plugin (com.glide.service-portal.consumer-portal) activated.

    After the customer agrees to the terms, the system creates a loan service case for the loan agent to implement those terms.

    As a loan agent
    1. A loan agent reviews the case details and updates it.

      The document processor service determines the documents that must be verified for the request. The workflow automatically generates an inbound document verification task for the document agent.

    2. A document agent works on the inbound document verification task to verify each document listed in the task. If required, this agent can request for a deferment of a specific document.

      The workflow generates a loan authorization task for the loan agent.

    3. A loan authorizer (loan agent) reviews the case details and approves it.
    4. A loan agent works on the loan update task and updates the loan information in the banking system.

      Banks can automate this task by enabling an integration with the core baking system.

    After the case is complete, its state and stage are set to Closed Complete and the work notes are updated.