Loan Origination System

The loan origination process involves several stages: 1) Data Collection - The lender gathers information about the borrower from various sources and focuses on key parameters such as credit history, cash inflow, collateral, and character. 2) Minimum Risk Assessment Criteria - Borrowers are evaluated on factors like age, income, and pincode to minimize the risk of default. 3) Document Collection - The lender requires 2 KYC documents, Proof of Address and Proof of Identity, to be submitted and analyzed. 4) Credit Bureau Check - This step determines the borrower's credit scores based on factors like repayment history, credit utilization, and current loans. 5) Loan Underwriting - The lender assesses the borrower's creditworthiness by considering their credit score, debt-to-income ratio, and collateral value. 6) Video KYC or Field Visit - Borrower identities are verified through a video process with specific conditions such as geotagging, trained loan officers conducting the verification, liveliness checks, and document validation. 7) Loan Negotiation - Final terms of the loan are agreed upon by both parties. 8) E-Mandate - Automatic repayment is set up through a series of steps. 9) Loan Contract - A document that outlines crucial details such as lender and borrower information, specific loan terms, repayment methods and timelines, accepted payment methods, interest rates, etc. 10) Disbursement of Loan - Lenders distribute loans to borrowers upon approval.

Yes, CloudBankin is a comprehensive digital Loan Origination System (LOS). Our platform offers lenders a user-friendly, secure, and scalable solution for digitally onboarding borrowers. With advanced features, CloudBankin streamlines the entire loan application process, ensuring a seamless and efficient user experience from application to disbursement.

Yes, CloudBankin enables online payment solutions via integrated payment gateways. This supports both automated loan disbursements and seamless collection of payments through direct debit (E-mandate) from customer accounts, streamlining the process for both disbursements and repayments.

In finance, loan origination refers to the entire process through which a borrower applies for a loan and the lender processes the application. The loan origination process involves several steps: It begins with the borrower submitting a loan application. Next, the lender collects and verifies the required documents, followed by underwriting to assess the borrower’s creditworthiness. If approved, the lender presents a loan offer with specific terms. Once the borrower reviews and accepts the offer, they sign the loan agreement, and the lender disburses the loan amount.

A Loan Origination System (LOS) is specifically designed to manage the entire loan application process, automating tasks from initial application through to approval and disbursement. It aids lenders in gathering borrower information, assessing creditworthiness, and streamlining documentation to achieve faster approvals. In contrast, a Loan Management System (LMS) takes over once the loan has been disbursed. Its primary focus is on managing the loan throughout its life cycle, which includes tracking payment schedules, handling collections, addressing delinquencies, and facilitating effective communication with borrowers.

CloudBankin automates several key aspects of the loan origination process to boost efficiency and accuracy. These include: 1) Customer Management – Automation facilitates data collection via web portals and APIs, reducing manual entry errors and onboarding delays. 2) Credit Analysis – Automating creditworthiness assessments using KYC, credit bureau reports, bank statements, and alternate data speeds up underwriting. 3) Credit Decisioning – Our rule engine automates verification and decision-making, enabling loan approval in as little as 2 minutes. Automation enhances the process by reducing errors, improving consistency, and speeding up approvals.

Yes, our LOS is configurable. For instance, 1. We have integrated the credit bureau (Equifax) into our platform, so all you need to fetch your borrowers' credit reports is your licence key. 2. To configure "n" number of parameters in the rule engine, it is easily integrated to add or modify parameters (conditions) that aid in making credit decisions when evaluating your borrowers. 3. Configure product master - simply by adding new parameters in data fields for interest rates, principles, repayments, loan terms, repayment strategies, moratoriums, etc., you can create a new product. The aforementioned examples demonstrate that no human assistance (from developers) is needed for them. To that extent, Cloudbankin is configurable.

Yes, our LOS(Loan origination system) is completely safe and secure. Every data is often stored in a completely encrypted and centralised dedicated tenant-based system with firewall in our cloud-based loan origination system. To guarantee that systems and data are secure at all times, our team combines battle-tested technologies, open-source strategies (like OWASP), strong cloud infrastructure (like AWS), Monitoring System (Prometheus, Graphana), Penetration testing (VAPT), Audit Logs, Application Level User Access Control and risk/security processes & policies. Lenders don’t have to depend on the legacy system’s hardware and the chance of them getting hacked. This makes sharing and updating data with only authorized and trustworthy people within the business a safe and quick manner. Accessing the LOS becomes much easier from any browser, thereby increasing the simplicity and time management efficiency for lenders and their borrowers. This also provides a high level of transparency and access control from any location, device and time.

Yes, CloudBankin’s LOS is designed to be modern and highly user-friendly. It automates quick credit decisions through an advanced rule engine and integrates with APIs such as CKYC, credit bureaus, and bank statement analyzers for seamless data retrieval. Leveraging cutting-edge web technologies like React, Angular, and Capacitor, it enhances the customer experience, reduces acquisition costs, and ensures transparency. Features like personalized SMS/email alerts further improve customer engagement, making the platform both efficient and intuitive for users.

Yes, CloudBankin’s Loan Origination System (LOS) is SaaS-based, offering key advantages: 1. Access the software whenever, wherever you want, using any device. 2. No need for in-house infrastructure, as everything is managed on the cloud. 3. The system integrates seamlessly with various APIs to pull borrower data from multiple sources, ensuring faster time-to-market and efficient loan processing. This cloud-based solution streamlines operations and enhances scalability for lending institutions.

Yes, CloudBankin’s Loan Origination System supports point-of-sale (POS) lending, including features for Buy-Now-Pay-Later (BNPL) financing. This allows businesses to offer flexible payment options at the point of sale, helping to enhance customer experience and grow business opportunities. For more details, you can explore our BNPL solutions page.

CloudBankin’s LOS and LMS are easily configurable through a user-friendly interface. You can customize workflows, set up loan products, and adjust rules for credit decisions, repayment terms, and borrower eligibility. Our support team is available to assist with more complex setups.

If the customer's information is not found in the CKYC portal, you can validate their Aadhaar and PAN details separately. After successful validation, you can manually retrieve and verify the required customer information to proceed with the loan process. This ensures that you can still move forward with customer onboarding even if CKYC data is missing.

Yes, the system automates loan approval using a credit rule engine. Disbursement can either be automatic, triggered through integration with payment gateways, or manual, where an authorized person reviews and disburses the loan. This ensures flexibility in handling approvals and disbursements.