What is lending limit as an amount in SAP FS-CMS - Collateral Management System?

SAP Term: lending limit as an amount

• Component: FS-CMS

• Component Name: Collateral Management System

• Description: The maximum amount of the lending value of an object that a bank is permitted to lend, in accordance with legal and statutory requirements. Formula = lending value multiplied by lending limit in percentage.

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• Key Concepts: 
  Lending limit as an amount is a feature of the FS-CMS Collateral Management System (CMS) in SAP. It is a limit set by the lender on the amount of money that can be borrowed against a particular collateral. This limit is based on the value of the collateral and the risk associated with it. 
  
  How to use it: 
  The lending limit as an amount feature in FS-CMS CMS allows lenders to set a maximum amount that can be borrowed against a particular collateral. This limit is based on the value of the collateral and the risk associated with it. The lender can also set a minimum amount that must be borrowed against the collateral. 
  
  Tips & Tricks: 
  When setting a lending limit as an amount, it is important to consider both the value of the collateral and the risk associated with it. The lender should also consider any additional costs associated with borrowing against the collateral, such as interest rates or fees. 
  
  Related Information: 
  The lending limit as an amount feature in FS-CMS CMS is part of SAP’s Collateral Management System, which provides lenders with tools to manage their collateral and loans. Other features of this system include loan origination, loan servicing, and loan repayment.