How Finezza’s Smarter Loan Eligibility Estimator Helps Optimise The Lending Lifecycle!

The span of time that traditional financial institutions incur to estimate loan eligibility and evaluate loan applications can be pretty long.

As evaluating loan eligibility involves considering factors like prevalent interest rate; tentative loan tenure; nature of employment of the applicant; gross monthly salary and market value of the securities, manually go through heaps of paperwork just to check if an applicant qualifies for a particular loan scheme or not can invariably elongate the lending lifecycle.

It is true that criteria for loan eligibility is never the same for every institution but Finezza brings a highly customisable solution to solve the eligibility assessment woes of the lending companies. 

Role of a Loan Eligibility Estimator in Modern Lending

Bank loan application processes are exhaustive and time-consuming. To add to that, the loan approval exercise is a lengthy one too. Depending on multiple factors like conditions of the lender, type of loan and borrower profile, the eligibility for getting a loan varies. Thus, there is no standard way that loan eligibility can be calculated. Modern lending allows lenders to integrate a loan eligibility calculator customised to their criteria into their systems. 

How Finezza’s Smarter Loan Eligibility Estimator Helps Optimise The Lending Lifecycle?

Assessing the credit-worthiness of a borrower is a difficult task. Manual loan assessment is lengthy processes that lengthen decision timings. There is a lot of data that goes into checking eligibility of an applicant which becomes difficult to process manually. Very often the tools they use a highly generic in nature and are not designed specifically to cater to the needs of these financial lending companies. 

There can be faulty multiple entries leading to duplicate records, non-uniform data and retrieval issues when working with traditional methods of eligibility calculation in a loan approval. Financial companies that rely on traditional methods often struggle with approval timing, hefty costs and the scale of unpredicted losses due to flaws in eligibility estimation.

As the times change, commercial lending markets become increasingly flooded with software applications that pledge to handle loan origination and credit assessment requirements of non-banking financial lenders. As more and more financial institutions become mindful about improving their practices to increase efficiency, loan approval time, and productivity, it leads to better customer experience.  

The trends suggest that credit institutions are increasingly adopting mobile and web technologies to achieve greater success. The tech integration allows borrowers to perform monitoring, checking and repaying on their own. Such automotive tools add convenience to the process for borrowers and lenders alike. Not only do they get enhanced efficiency thanks to lending management tools, but also enjoy a competitive edge against their peers. Tech tools can help lending companies provide exceptional services to borrowers as well as sustain profitably.

Given the huge popularity of such tools, it becomes evident that lending companies who fail to leverage the distinct conveniences that technology has to offer often find it difficult to stay afloat in the competitive markets. With the help of cloud services, data integration, automation, and analytics NBFCs improve processes and optimise lending lifecycle. 

Finezza is a loan lending management software that helps non-banking financial companies integrate loan eligibility calculator tool into their website. This prolific tool allows loan evaluators at the lending company to check the eligibility of applicants in just a matter of few minutes. NBFCs can disburse loans to applicants with minimum processing time, almost instantly, thanks to the Loan Eligibility Estimator by Finezza. 

Here’s how Finezza’s Smarter Loan eligibility estimator helps optimise the lending life cycle of an NBFC:

1. Resource Saving

When compared to usual monetary transactions at financial institutions, a loan application tends to be paper-heavy. A number of documents and proofs need to be submitted even before the loan assessment and approval process begins. Loan assessment involves multiple expenses like the cost of copying, sending documents, delivery delays, lost or incomplete paperwork, and missed opportunities.

Using the Smarter Loan Eligibility Estimator by Finezza allows evaluators to check an applicant’s eligibility in real time. This omits the unnecessary hassle that a lending company has to go through when it has to run a loan assessment for an ineligible applicant. Hence, with the Loan Eligibility Estimator tool integrated into the lending company’s system can help save a lot of money and resources. 

2. Streamlined Approach

For many leading companies, the loan approval process still involves a series of manually executed steps like visual verification of applicant data. There is often a need to make multiple entries to login data systems as part of the assessment process. All these manual steps can significantly delay the loan decision time and adversely affect the lending lifecycle.

Finezza software helps lending companies replace manual exhaustion with automated and flawless decision-making. NBFCs achieve greater efficiency and accuracy in processing of loan applications for approval with Finezza software.

3. Multi-dimensional Credit Assessment

Using the Finezza software, fintechs can let go off the traditional uni-dimensional approach of eligibility assessment. NBFC can now access the creditworthiness after entering data from multiple sources like bank statements, previous loan history, multi-credit bureau integration, GST information and more.

This provides a more realistic view of the potential success of loan repayment. It also helps omit out false positives and helps achieve a realistic view of the business/person who is being evaluated for a loan.

4. Customised to Mimic Lending Company’s Credit Evaluator’s Understanding 

Finezza’s Smarter Loan Eligibility Estimator comes with distinct credit assessment and analytical functionalities. It can be customised according to the loan disbursement criteria of any Fintech in particular. The evaluator gives an all-round view of a customer’s eligibility for a business loan. Loan Eligibility Estimator by Finezza takes into account borrower’s details like cash flows, sales growth, gross margin and haircut.

It also takes inputs to mimic a credit evaluator’s understanding and integrates them into its algorithm. It then proceeds to construct scenarios where it enlists possible loans and terms that can be offered to any potential borrower in particular. The calculator tool gives a detailed eligibility report that includes the principal amount, tenure, ROI and EMI estimated. This tool reduces human effort and bias and thus optimises the lending life cycle of a fintech. 

If you wish to know more about how you can use Finezza to optimise your lending lifecycle management process, get in touch with us today!