When an RBI inspection team reviews a cooperative bank’s books, related-party lending is among the first areas they examine. Not because the loans are necessarily problematic, but because tracking gaps here compound quietly, and an incomplete recusal record from two years ago becomes a governance finding in the current audit cycle. The Punjab and Maharashtra […]
What the RBI’s 20% Unsecured Lending Cap Means for UCB Loan Systems
Urban Co-operative Banks (UCBs) have run their unsecured book against a 10% of total assets ceiling for years. Anyone who has audited a UCB’s lending exposure knows that number without looking it up. From 1 October 2026, that number changes, and so does the maths behind it. The Reserve Bank of India’s revised concentration risk […]
Does Your Lending Management System Handle Gold Loans?
Most Loan Management Systems (LMS) still treat gold loans as a lightly configured term loan: set the loan-to-value (LTV) ratio, set the tenure, done. That’s no longer enough. RBI’s Lending Against Gold and Silver Collateral Directions, 2025, fully effective from 1 April 2026, changed how LTV gets calculated, how long a bullet loan can run, […]
The Lending Life Cycle for Loan Against Property: Steps Most Lenders Skip
The origination stage of a Loan Against Property (LAP) gets the most scrutiny a lender’s process ever applies to it. Title verification and technical valuation run in parallel before sanction, treated as the disciplined part of the file. Finezza’s work with lenders running LAP books keeps turning up the same pattern: once the loan is […]
Does Your LMS Support Working Capital Lending at Scale?
Working capital lending products like overdraft (OD) facilities, revolving credit lines, invoice discounting, and bill discounting don’t follow the term loan model. Borrowers draw down as needed, repay partially, and draw again. The outstanding balance fluctuates continuously. An LMS designed around a fixed-disbursement, fixed-repayment structure handles this poorly, and the problems compound as volumes grow. […]
Why MSME Borrowers With Clean P&Ls Still Default Despite Credit Underwriting
A small manufacturer in Coimbatore, supplying auto components to two large industrial buyers, applies for a working capital loan. The Profit and Loss (P&L) statement shows consistent revenue growth over three years. The balance sheet looks stable. The promoter’s credit score is above 700. The credit manager approves the loan. Eight months later, the account […]