What is Lending Software Services?
Technology has affected all areas of business. Different authorities such as SEBI and RBI are making efforts to streamline the technology in regulation. Due to this, loan management institutions have to adopt strategies that make them more useful. Loan management software should be able to deliver scalable solutions within a particular period. Lending Software solutions are processes and software that use Artificial Intelligence, Data Analytics, and Machine Learning Technologies to make the loan management process seamless and efficient.
What are the objectives of Lending Software Services?
Lending software services brings the following objectives to your business:
- It helps in smoothly integrating loan disbursements for companies and individuals.
- Through different algorithms, the borrower's input is analyzed, and the probability of the repayment is measured through the lending software.
- Lending Software Services also helps your company determine whether a borrower is eligible for a loan.
- The loan management software also provides information on top lenders.
- It provides scalability and analysis of the loan.
- Through loan management software, regular regulatory compliance can be maintained by lending companies
Where Lending Software Services can be used?
Loan origination is considered as the entire process of borrowing a loan from the lender. In the loan origination process, the borrower would approach the lender. The lender will request the borrower to make an application for the loan. Right from making an application for the loan to securing the same, the whole process is known as the loan origination process. With the application for the loan, the borrower has to submit appropriate documentation. The main aim of loan origination is to analyze the whole lending process by the company. In this analysis, the risk associated with credit will also be measured by the lender. Therefore loan origination is a process in which the lender has completed information on the lending processes followed by him. Loan origination will ensure that the company lending process is streamlined using effective and consumer-friendly ways. Lending software services can make the whole process of loan origination smooth and effective. Through our lending software services, the process from loan application to disbursing the loan can be tracked through the software. This software also helps in analyzing risks and loan repayment processes.
Lending through Syndicated Means
Syndicate is a process where different lending companies provide loan facilities to one company. Usually, there is a group of different lenders in loan syndication. Our loan syndication platform understands your commercial requirements and provides the required results. Commercial borrowers often approach a syndicate for commercial loans. We conduct a thorough analysis of the amount of loan needed for your commercial needs through our lending software services. Using our software will provide your organization with a competitive edge when it comes to loan origination and loan syndication.
Lending for Business Use (Commercial Lending)
Digitization has affected all markets. It has not left the lending market untouched. Retail lending and commercial lending companies have utilized the benefits of digital products. Digital lending practices streamline the strategies of an organization and make lending more efficient. Retail lending serves individuals, such as individuals, households, and families. The types of loans for this class of borrowers include house loans, property loans, education loans, and loans for miscellaneous services. Lending Software services will make systems in a retail organization more robust and agile. Commercial lenders serve customers such as institutional lenders, corporate companies, and government agencies that carry out construction and turnkey contracts. Lending software solutions will improve transparency in the whole lending process. Right from loan processing to loan origination, the service offered to corporate clients would be more flexible. Lending software services provided by us will integrate Application Programming Interfaces (APIs) to different platforms, thus improving the entire lending process and increasing credit rating standards.
Individual Lending Services
Individual lending is also known as consumer lending. Every individual has many financial demands. Be it a short time business owner to a retail shop. Financial emergencies can occur at any point in time. It is the duty of the individual lender to meet such requirements of the borrower. Our lending software services will provide end-to-end lending solutions for your business to meet consumer lending needs. We find the best alternative in providing lending software services for your business to fulfil consumers' expectations.
Property Lending (Mortgage Lending)
Property Lending is also called as arranging a mortgage. In some countries, this form of work is called a conveyance service. Applying for a home loan or a mortgage is not an easy task. It is a long process that involves a large amount of paperwork. Moreover, the lender may have the upper hand in certain circumstances, making the terms for the borrower unreasonable.
Applying for a mortgage involves the following process:
Correspondence with a Bank
The applicant will have to contact the bank to seek information on the mortgage amount.
Making an Application for the Mortgage
Once the applicant secures the necessary information, an application for the mortgage should be made. With this application, the application has to submit requisite documentation.
Credit Rating/ Credit Score
Once the application for a mortgage is made, the bank will scrutinize the application with the necessary documents. Based on the applicant’s performance, the credit rating score of the applicant will be determined. The propensity of the applicant making a repayment will be determined here.
Agreeing on the terms of the Mortgage
In this step, the applicant and the mortgagor will determine the terms on the mortgage. These terms would be binding on the applicant. The terms which the mortgage agreement:
1) Payment terms;
2) Hypothecation of Mortgage Property; and
3) Payment of interest if necessary.
Repayment of Mortgage
Once the purpose of the mortgage is served, the applicant must repay the mortgage or the principal amount back to the lender.
Through Lending software services, your lending company can integrate and streamline the whole mortgage process with digitization and data. This Software helps in analyzing the information given by the lender. Based on the information provided in the Software, the applicant's credit rating can be determined. Lending software services offered by us will help in the following:
1) Mortgage Application;
2) Credit Risks and Analysis;
3) Funding Requirements; and
4) Document Preparation.
With the above process, your organization can achieve optimum efficiency and increasing the number of mortgages you disburse daily.
Regulatory compliance not only involves following rules and regulations but also involves different strategies that help the organization achieve its objectives. Due to technology disruption, companies have developed strategies to stay ahead with reporting and compliance requirements. This directly improves its corporate governance strategy and transparency. Hence companies have to develop their compliance standards. Lending companies also have specific standards when it comes to providing loans and credit rating. The standards of lending must meet the criteria of the prescribed regulatory authority.
Through our lending software services, compliance reporting can be adhered to by your lending company. Monitoring compliance is also possible with this software. An assessment of the standards of lending can be measured using the software. The standards of lending will be compared to the prescribed standards as per the regulatory authority. This method is known as the collection process assessment. Collection Process Assessment provides the criteria for measuring the standards of the loan collection process. A graph will indicate the standards of loan collection, which are prescribed according to authority. The standards of the collection will be quantified and measured against this. Our lending software services will provide monitoring compliance, collection process assessment, and other benefits for your organization to achieve a competitive advantage over other lenders.
Key features of Lending Software Services
Lending Software Services has the following features, and it can perform different forms of service. Some of the key elements of lending software are:
- The loan software helps in the effective disbursement of loans.
- Loans that are not paid become bad. This is also known as Non-Performing Assets (NPAs). Monitoring activities of NPAs can be carried out through the lending software.
- One of the critical features of loan software is creating and managing multiple loan accounts of Individuals and Corporate clients. To access these accounts, user information must be inputted, and the accounts can be accessed. Sensitive customer information is secure through the loan software.
- Unpaid loans that cannot be repaid can be written off using the lending software.
- Monitoring the status of the loan can be carried out through the loan software. Through this process, loan origination is possible. From the application stage until the day the loan is disbursed, the applicant and the lender will know the status of the loan.
- Estimated Monthly Installments (EMIs) are monthly payments required to be made when the loan is disbursed. Through lending software services, the amount of EMI can be calculated for the applicant.
- Rescheduling- Term loans are provided only for a specific period. Periodically these loans can be rescheduled according to the requirements of the loan process. Through the lending software, rescheduling such loans are made easier.
Threats to Lending Software Services
Cybersecurity threats are one of the largest problems for an organization. Technology and Software’s are more susceptible to IT-related threats. IT threats can be information breaches, viruses, email spams, malware, and ransomware. Such attacks can be detrimental to the development of the organization. To counter such threats, the lending company must have effective cybersecurity protocols.
Companies that process data must follow compliance under the Personal Data Protection Bill, 2018. The consequences of informational breaches can affect the reputation of the company detrimentally. The lender must clarify that before starting the lending process, the applicant's consent must be taken. Consent is required for processing any form of personal data. The lender using such Software must make sure that consent from all applicants is received.
Some lenders are not ready to adapt to changing technologies. Adaptability is an issue when it comes to traditional lending. Traditional lending is more common in banks rather than NBFCs. NBFCs are collaborating with Fintech Companies to secure the benefits of modern technology for lending processes. Therefore the culture of the company has to integrate with the modern practices followed by the lender.
- Enterslice is a recognized consultant in providing lending software services.
- IT experts at Enterslice have integrated various organizations with lending software. Our primary objective is to add value to your organization.
- We have multifaceted teams of professionals comprising of IT professionals, lawyers, and analysts.
- Our Software would provide a comprehensive analysis of the loan processing services which your organization offers.
- 24*7 Customer Experience