Line of credit lending exposes structural gaps in loan management systems built for term loans, from static limit fields to batch-cycle utilization tracking. This framework gives lending technology teams a five-part test, a self-assessment checklist, and a worked interest calculation to evaluate LMS readiness before launch. In this article: Why Term-Loan LMS Architecture Breaks Under […]
5 LSP Compliance Gaps in Your Digital Lending Software
When the RBI issued its Digital Lending Directions, 2025 on 8 May 2025, the coverage focused on cooling-off periods, Default Loss Guarantee (DLG) caps, and borrower protection mechanisms. The software implications received far less attention. Finezza’s loan origination system supports regulated digital lending workflows for NBFCs and banks, and the five compliance gaps below represent […]
Line of Credit on UPI: What NBFCs Must Prepare For
NBFCs cannot yet offer a line of credit on Unified Payments Interface (UPI). Regulatory access remains pending. But the infrastructure build cannot wait for approval, and teams at NBFCs using platforms like Finezza are already working through what this requires. The gap between “we got approval” and “we can actually run this product” is entirely […]
Why Does B2B BNPL Break Your Standard LMS Setup?
Most Loan Management Systems (LMS) were built around a specific mental model: one borrower, one loan account, one repayment schedule, and a fixed end date. That model handles term loans well, and personal loans, mortgage-style products, and working capital term facilities without much strain. Buy Now Pay Later for business lending (B2B BNPL) operates on […]
5 Operational Challenges Costing Microfinance Lenders at Scale
Managing 2,000 active loans leaves room for improvisation. Field officers know borrowers personally, delinquencies can be tracked on a spreadsheet, and bureau reports get compiled manually once a quarter. The informality works because the numbers are still small enough for a person to hold in their head. Once the portfolio grows to 20,000 loans, that […]
Why NBFCs Lose Co-Lending Mandates (And the Tech That Prevents It)
The co-lending model has become one of the most effective growth channels for NBFCs looking to scale their loan books without proportionally scaling their balance sheets. Banks bring the capital; NBFCs bring the customer reach, origination infrastructure, and last-mile servicing capability. On paper, the arrangement works cleanly. In practice, the operational complexity of running a […]