An ISO/IEC 27001:2022 Certified Organization
Lending Software for Banks and NBFCs
The end-to-end loan management journey from servicing to repayment and reporting
with features for loan servicing, collections, collateral management & more
A Loan Management Software (LMS) handles the various aspects of managing loans once they have been originated and approved. Simply put, an LMS handles all the activities until the borrower fully repays the loan.
Many banks and NBFCs still use outdated Loan Management Systems, which create operational and strategic challenges due to their inflexibility and poor scalability. Migrating to modern solutions is costly, leaving organizations caught between current system limitations and the difficulties of adopting new technology.
The LMS module is essential for managing loans throughout their lifecycle, ensuring proper servicing, accurate payments, and a healthy portfolio. It offers tools and data for informed decisions on modifications, collections, and collateral management while ensuring regulatory compliance.
Feature 1
Loan Portfolio Dashboard
Get an overview of all active loans in the system. Gain user snapshot of the current status of loans, including the number of loans, total outstanding balances, and upcoming payment schedules
Functionality
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View and filter loans by status, type, or date
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Monitor the overall health of the loan portfolio
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Access summary reports on portfolio performance
Feature 2
Loan Servicing
Day-to-day management of individual loans, including processing payments, handling customer inquiries, and managing loan accounts
Functionality:
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Accept and process borrower payments, including principal and interest
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Apply payments to the appropriate loan accounts
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Handle payment exceptions and delinquencies
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Generate and send payment receipts
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Track and manage loan account balances
Feature 3
Payment Processing
Payment processing is a critical function that ensures borrowers' payments are processed accurately and efficiently
Functionality:
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Enable acceptance of payments through various channels (online, in-person, mail)
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Calculate and apply interest, principal, and fees
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Support multiple payment methods, including ACH, credit cards, and checks
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Generate payment schedules for borrowers
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Handle early or extra payments and adjustments
Feature 4
Loan Modifications
Loan modifications allow for adjustments to loan terms, interest rates, or repayment schedules, often in response to borrower requests or changing circumstances
Functionality:
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Process loan modification requests from borrowers
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Calculate and display updated loan terms and payments
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Generate modified loan agreements
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Track and document all changes made to loans
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​Ensure compliance with regulatory requirements for modifications
Feature 5
Collateral Management
Collateral management is essential for loans secured by assets (e.g., real estate, vehicles). It ensures that collateral is adequately protected and accounted for
Functionality:
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Record and document collateral details
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Perform regular appraisals and inspections
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Monitor changes in collateral value
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Initiate foreclosure or repossession processes if necessary
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Maintain accurate records of collateral-related transactions
Feature 6
Collections
Collections management involves handling delinquent loans, pursuing collections efforts, and managing accounts in default
Functionality:
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Identify and categorise delinquent accounts
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Initiate collection processes, including notifications and follow-ups
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Negotiate repayment plans with borrowers
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Track collections activities and communications
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Generate reports on collection efforts and outcomes
Feature 7
Reporting & Analytics
Robust reporting and analytics capabilities provide insights into the performance and health of the loan portfolio
Functionality:
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Generate standard reports on loan portfolio metrics
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Create custom reports based on user-defined criteria
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Utilize data analytics to identify trends and risks
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Monitor key performance indicators (KPIs)
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Support regulatory reporting requirements