Loan Originating System
Development of a country is evaluated with respect to the progress of its Banking sector. Progress of a country s banking sector rests on its strength in handling its lending business.
Excellence of a lending institution is judged by its capability in managing the life cycle of loan. Quality in loan management can be attained by any financial institution with proper creation of loan documents for the respective transaction. This enhances capacity to judge credentials of the customer and decision making. The lending institution has to be sharp, focused and always on its toes while originating a loan process.
The entire process of identifying a borrower and creating appropriate documents leading to disbursement, servicing and finally recovery of the loan in a cycle is Asset Management. The risk in this transaction is that this loan could turn out to be a bad loan at any point of time. Monitoring the loan is an essential part of Asset Management. Growth has brought with it various challenges in terms of volume of trades, regulatory norms and the need for support in decision-making. Fluctuations in market scenario have a direct impact on the returns generated from loan books.
The challenge for Banks and other asset management companies is to find a robust, scalable, comprehensive product which results in increased operational efficiency and strong loan management processes. Data should be made meaningful through a comprehensive selection of flexible reports and analyses, many of which should be user-defined. Technology should be capable of identifying the default risk of counterparties and customers, whether public firms, private firms or individuals.
FinLUNA helps the Bank in providing Loan originating system with excellent support in creation of flawless documentation and to deliver prompt and effective service to its customers.
It caters to both retail and commercial lending scenario and automates all stages of loan origination, management, and repayment tracking. Document Management is facilitated with a provision to scan documents and attach them to individual application. Users can access the scanned documents submitted by the customer. This facilitates decision making with access to factual information.
It is a flexible Web-based system that has the capability of supporting multiple products over a network of various branches and associates of the lending institutions.
- Activities are role based and attached to different business processes.
- Different workflow parameters can be set for different lending products
- Workflow logic translates business requirements into enforceable processes.
- Manages the different stages of work-flow independently for every application.
- Robust controls ensure transaction and data integrity, operational efficiency, risk management and compliance.
- The elaborate account management features of the loan originating software, take care of varied critical aspects that include appropriation (application) and re-appropriation of receipts, reversals and representation of cheques, rescheduling for part prepayment / change in interest rates / tenor or instalment change request, and restructuring and compromise / settlement management. It helps in the identification and classification of Non-performing Loans for both normal and restructured loans.
- It has a ready solution for post-disbursal requests of customers, like prepayment, deferral, early termination, and simple queries, It carries features for rescheduling, foreclosures, termination, and closure of loans.
- FinLUNA facilitates integration with Core banking systems, Core Accounting System, Various documentation processes, Credit & risk analysis and MIS systems.
- Automatic message creation, transmission of letters, e-mails and SMS’s to borrowers.
- User friendly system helps reduce manpower and training costs
- Compliance norms can be set and the system can trigger appropriate warnings.
- Users can view all relevant files and documents to verify compliance.
- Users can verify various norms - documentary evidence, financial ratios, etc.
- In-built comprehensive audit trail
- Facilitates setting access rights to different users according to their roles
- Securely limit information to certain departments and also control or prohibit use after set hours.
- Multiple security features - encryption, discretion, auditing and mandatory password