In corporate loan underwriting, collateral acts as a safety net for lenders, reducing the risk of loss, and making sure that the lender can recover their funds if a borrower defaults. Typically, the size of the loan a lender provides ranges from 70% to 90% of the collateral’s value. This significant margin shows the importance […]
How Does a Loan Origination System Integrate with Legacy Systems?
As banking and lending become more inclusive and personalised, financial institutions continuously seek innovative solutions to streamline operations. One solution that has gained significant popularity in helping lenders improve their operations is the loan origination system (LOS). As per an IBSi report, over 55% of banks say the limitations of their existing core solutions are […]
Top 10 Features Every Modern Loan Origination System Should Have
Lending has changed dramatically with the rise of digital technology, and a modern Loan Origination System (LOS) plays a key role in this transformation. Traditional loan processes, relying on paperwork and manual input, have given way to automated, streamlined operations. A powerful LOS becomes indispensable as more lenders adopt technology to improve efficiency. But what […]
The Paradox of Alternative Lending: How It Can Both Simplify and Complicate the Lending Process
The growing demand for credit access among retail consumers and businesses has led to the accelerated growth of alternative lending in India. The key factors driving growth include limited credit access within traditional banking, fintech innovation, and widespread smartphone penetration. The market size of this category is expected to grow from $7.53 billion in 2023 […]
Why Loan Delinquency is a Wake-Up Call for MFI Lenders and the Industry
Did you know that rising loan delinquency rates can lead to significant opportunity costs and damage the reputation of Microfinance Institutions (MFIs)? According to a recent Business Standard report, non-banking financial companies (NBFCs) focusing on microfinance may face higher credit costs due to increasing loan delinquencies. In addition, the asset growth of these companies is […]
Is Your Loan Management System Meeting Regulatory Compliance Standards?
The rapid advances in fintechs and their adoption have led regulatory bodies such as the Reserve Bank of India (RBI) to scrutinise the digital lending guidelines closely to limit compliance breaches. For example, In October 2024, four Non-Banking Financial Companies (NBFCs) were barred from sanctioning and disbursing loans due to regulatory violations. Also, earlier this […]