loan management system

 
What exactly is a loan management system?

A loan management system is a platform that assists lenders in automating the entire loan handling process. In addition, the software can assist with processing customer information; creating new loans, and much more.

Besides, this type of software comes with various tools and technology stacks. This helps in simplifying the process of consumer lending. The loan management system software also induces reports with proper analytics and provides useful insights concerning the loan process and customers.

Also Read, What is FinTech?

Let’s glide into the features and factors to consider while building a loan management system.

Essential Features of a Loan Management System
Normally, a Lending system is built for scalability. This means, that you can begin with a simple functionality of AI-powered KYC and build your software from there to a full-functioning loan management system.

✤ Loan Origination

Loan origination is simply a process where a consumer applies for a loan. The lender processes the loan. Here are some of the sub-features to include in Loan Origination feature:

Option for Digital KYC
Loan Document Software
Check Credit history
Different loan types
Automation of loan process and application
Cloud-based infrastructure for loan availability and scalability
✤ Loan servicing

A lender can easily manage loans using this feature. Also, each loan being different has separate rates, interests, payment dates, and so on. Therefore, an individual can track all these loans and assure that payments are received on time.

Loan Servicing assists in calculating interest fees, taxation, and more. It also includes sub-features such as payment reminders, monthly statements, collection of payments, wire transfers, credit cards, etc.

✤ Debt Collection

Collecting a payment back i.e. a Debt is a key feature of your loan management software. So, the loan management system software should notify the customers when their payment is due. This also means that the system should calculate the late fees; do tax calculations on the payment and send reminders to loan borrowers accordingly.

In addition, you can also use third-party integrations in the software. This can help establish an auto-debit system of the payment from the borrower’s account.

✤ Reporting and Analytics

A reporting and analytics module is a crucial part of a loan management system. The reason is simple. In order to generate reports highlighting interactions with customers, and businesses and analyzing profits of products you need this module.

In fact, it provides the analytics for the overall stride your business has endured. Also, to develop this module you will need Cloud integration. The Cloud services will help remote sales personnel access the reports and share them with ease.

These were some prominent features now let’s have a glimpse of some factors.

Source: Webbybutter