Loan Management System

Our Loan Management System allows you to configure and launch loan products with customizable parameters, including principal and interest range, interest calculation methods, days configuration, broken period interest calculation, moratorium, NPA setup, charge configuration, and interest recalculation. It supports 12 loan types, including Personal Loans, Business Loans, Vehicle Loans, Gold Loans, Line of Credit, Payday Loans, Microloans, Agri loans, Loan Against Property, Microfinance, and Yearly Salary Loans, offering maximum flexibility to tailor products for diverse customer needs.

CloudBankin’s Loan Management Software (LMS) is designed for diverse financial institutions, including Non-Banking Financial Companies (NBFCs), Fintech companies, Microfinance Institutions, Co-operative Banks, Credit Unions, and Banks, offering comprehensive, end-to-end lending infrastructure tailored to each sector's needs.

Loan Origination System (LOS) manages and automates the initial stages of the loan lifecycle, from application to loan disbursement. Conversely, a Loan Management System (LMS) handles the post-disbursement process, overseeing loan servicing, repayment tracking, and account management until the loan’s closure. Together, LOS and LMS streamline the complete lending journey for both institutions and borrowers.

Yes, our Loan Management System (LMS) offers integrated accounting features for seamless loan transaction management. Configure the Chart of Accounts (COA) and map it to individual loan products. The system automatically generates journal entries for disbursements, repayments, and fees, with the option for manual entries. Transaction data can also be exported to accounting software like Zoho Books and Tally via API or bulk upload, ensuring efficient financial reporting.

Loan Management System (LMS) simplifies collections and repayments by supporting both auto-debit and manual payment methods. The system ensures timely repayments, updates loan balances, and amortizes principal and interest components for each payment. CloudBankin LMS also handles part-payments, loan foreclosures, rescheduling, charge and penalty waivers, and loan write-offs, providing comprehensive loan servicing capabilities.

Loan Management System (LMS) enables lenders to manage loan rescheduling and restructuring efficiently. The LMS offers four key functionalities: 1. Changing the repayment date, 2. Implementing a moratorium, 3. Extending the loan repayment period, and 4. Adjusting the interest rate for the remaining loan term. These flexible options allow lenders to customize loan terms to accommodate borrower needs, enhancing loan management and servicing capabilities.

Yes, we have the facility to configure different types of charges in our LMS with the below configurable parameters: 1. Charge Collection Time - at the time of disbursement, specifying due dates, instalment fees, overdue charges, foreclosure charges, etc. 2. Charge Calculation- flat amount, percentage of loan amount, percentage of interest, percentage of outstanding amount, percentage of principal partly paid, etc.

If a loan is overdue for certain days (for example, 90 days), as per RBI regulations, the loan will be marked as an NPA. Loan Management System (LMS) can track and generate a report of all the NPA cases. If all arrears are cleared, the loan will move out of NPA. We manage NPA in the following ways 1. Identify loans that are at risk of becoming non-performing. 2. Monitor their status regularly. 3. Send out an early warning in case a loan is going to be NPA. 4. Allow lenders to work with borrowers for repayment. 5. In case of a loan is not moved out of NPA, it can be written off or taken any other necessary action accordingly. Our LMS is there to make sure that it mitigates as many losses as possible for the lenders easily.

Our rule engine is the credit decision-making platform that is configured with lenders’ credit rules & policies. It obtains data from various sources like PAN, Aadhar, Credit Bureaus, Bank Statements, SMS transactions, etc. It configures up to 2000 data points and can also integrate more based on lenders’ requirements. A lender gets the credit assessment memo as the output for their borrower’s eligibility.

Yes, you can send emails via our system. This can be on the following ways: a) Event-based - You can send emails on events such as login, signup, non-repayment of borrowers, etc. b) Schedule-based - You can schedule to send emails with available email template formats on a daily, weekly or monthly basis. For reports, you must separately schedule to send emails to the given email IDs. Our system easily allows you to customize the templates used for sending emails. Email IDs and reports are configured in our database without any hassle.

Yes, template customisation is possible in our LMS, which is useful for Sending personalised alerts & notifications for SMS and emails according to the availability of the variables. Generating loan agreements, loan closure letters, etc., as per the loan applications. This can be downloaded in PDF format under the respective loans.

Yes, reporting is available in our LMS. There are 50+ reports, such as active loans, balance sheets, trial balances, general ledger reports, loan payments due, ageing detail, etc. By seeing the reports, lenders can get current snapshots of their businesses. The reports can be exported as CSV and can also be customized according to your requirements.

A Loan Management System (LMS) offers several benefits, including increased efficiency, enhanced accuracy, improved customer service, cost reduction, better regulatory compliance, enhanced risk management, and scalability. Transitioning to a paperless, agentless, contactless, and branchless model further simplifies processes and modernizes operations for financial institutions.

Exploring these factors will guide you in making a well-informed choice when selecting a loan management system. Broader Coverage of Loan Types, User-Friendly Interface, Centralized Solution, Speed & Agility, Authenticated Access, Technology and Customer Service Support, Cloud Based or On-Premises Deployment, Better Third-Party Integration, Flexibility, Web And Mobile Compatibility, Data Security & Compliance, Scalability Cost.

The essential modules in the Loan Management System (LMS) are Reports & Dashboards, Audit Trail, Template Creation, Alerts & Notifications, Advance EMI, Top Up Loans, Rescheduling of Loans, NPA Management, Co-lending Module, Accounting, User Access Restrictions, Auto Write-off, Chart of Account, Recovery Repayment, etc.,

The implementation of a loan management system typically takes about 2 weeks from onboarding, subject to various factors such as Data Migration, LMS setup, Third-party configurations, Accounting Configuration, and testing & matching repayment schedule.

To set up a Loan Management System (LMS), begin with 1) Setting up your organizational structure. 2) Add Chart of Accounts. 3) Loan Product and Charge Setup. 4) Migrate data from the existing system. Then proceed with onboarding your customers and the loan servicing process.

The process of migrating from an existing system to a new loan management system involves any one of the methods below:1) Database - ETL (Extract, Transform, Load) 2) Through API 3) Bulk Import. And the process includes: 1) Understand the Database Schema of the Source System. 2) Identify the Modules Required for Migration. For example, Office, Clients, Loans, etc. 3) Decide the Migration Strategy, deciding whether to start from historical data or focus on data as of a specific date. 4) Write SQL queries tailored to extract relevant data from the source system efficiently. 5) Run Validations to ensure the output of SQL queries accuracy and adherence to predefined criteria, mitigating risks of data discrepancies during migration. 6) Create new loan products within the new Loan management system, configuring settings and parameters to align with organizational objectives and regulatory standards.

Yes, we can generate collection reports for a specific period. Our system offers over 50+ customizable reports, allowing you to generate reports tailored to your requirements.

Yes, we provide comprehensive API documentation for both the Loan Origination System (LOS) and the Loan Management System (LMS) to facilitate integration with your existing systems.

CloudBankin's platform automates the process of daily credit reporting to the bureau in the CIBIL format. This automation enhances accuracy and compliance while providing real-time insights into borrower creditworthiness, improving risk assessment and decision-making.