Loan underwriting is an eligibility process check performed by a lender , such as a bank or NBFC, to determine if a borrower/applicant meets the lender's eligibility criteria before approving the loan. It involves evaluating the borrower's credit information, reports, CIBIL scores, and financial documents such as income statements to assess their creditworthiness . A credit underwriter and a credit officer perform this process . The eligibility criteria vary across lenders,

In the lending industry, the playing field among NBFCs , Small Finance Banks (SFBs) , and traditional banks is more balanced than before, with all having equal access to growth opportunities via Artificial Intelligence (AI) driven lending solutions . Traditional banks have dominated the lending industry owing to their infrastructure, customer bases, and financial capital. However, AI has levelled the playing field, enabling NBFCs and SFBs to compete equally . Key Takeaways

Lending software requirements differ for Banks and NBFCs. Explore why it is so and how SimSol's 2 in 1 LOS + LMS is agile for both institutions.