India’s economic growth hinges on the success of more than 633.9 lakh micro, small, and medium enterprises (MSMEs) which account for nearly 30% of gross value added (GVA) in India’s gross domestic product (GDP). Despite their valuable contribution, access to credit remains one of the major barriers for MSMEs, particularly unorganised MSMEs due to lack […]
Evaluating Loan Origination Software: 9 Critical Questions to Ask
When lenders choose a suitable loan origination software (LOS), it can significantly boost their operational efficiency, improve customer experience while mitigating security risks and providing a competitive edge. According to a 2024 study, loan origination systems that incorporate automated workflows, mobile features, and e-signing capabilities can reduce loan processing times by up to 30%. However, […]
Assessing Line of Credit Applications: Best Practices for Lenders
Today, a growing number of consumers require funds for personal, or business reasons. The funds may be used for a home renovation, expenses after a job lay-off, or to fund business operations. The value of funds can vary. Typically, such borrowers apply for a line of credit, which allows them to get access to funds […]
Understanding the Different Types of Credit Risk
Credit risk continues to remain one of the areas of concern for a majority of traditional and new-age lenders. The reasons for this are varied. For example, macroeconomic fluctuations, such as political conflict, recessions, or market instability, can lead to higher default rates. Additionally, new-age lenders often cater to underserved or high-risk segments, increasing the […]
Unlocking Opportunities: Loan Management Systems and Financial Inclusion in India
India, a rapidly growing economy with over 1.4 billion people, faces significant challenges in financial inclusion. Since independence, its banking sector has evolved through four distinct phases: Pre-social banking (1950-1969), Social banking (1969-1990), and two Liberalisation periods (1990-2005, 2005-present). Despite rigorous efforts to attain financial inclusion, around 11% of India’s adult population is underbanked even […]
How Transaction Data Analysis Promotes Trust and Accountability in Lending
As the lending industry becomes more competitive, transparency and accountability in decision-making are critical for a productive and long-term relationship between stakeholders. Customers want to make informed decisions and feel empowered when making a choice. In this scenario, transaction data analysis can strengthen the relationship between lenders and borrowers. It gives lenders critical insights and […]