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 Does Micro Loan Management Software Improve Lenders Profitability?
According to experts, microfinancing has been one of the most instrumental factors in facilitating financial inclusion in India. The Bharat Microfinance Report by Sa-dhan highlights that 98% of microfinance institution (MFI) borrowers are women, demonstrating the significant role MFIs play in empowering women entrepreneurs through micro-credits. This impact is further underscored by data from the […]
Ways Loan Management Software Accelerate Transparent Lending
Ever wonder how India’s banking systems got so high-tech? From the first ATMs in the 2000s to today’s cutting-edge innovations, India’s financial landscape is transforming at breakneck speed. Government initiatives and fintech breakthroughs are fueling this revolution, making banking more efficient, inclusive, and transparent for everyone. Lending was one of the major areas that was […]
Lending Life Cycle Management: Challenges and Best Practices
The lending life cycle consists of all activities that begin at the loan application stage and culminate with the final repayment. It involves due diligence regarding customer background by the lenders, regulatory compliance, and financial processes for the lender. However, many lenders encounter multifaceted challenges at various loan stages, including the critical tasks of risk […]
Line of Credit vs. Traditional Loan: Which One is Right for Your Lending Business?
In lending, financial institutions continually seek flexible and potentially lower-risk financing solutions to meet the evolving needs of businesses. Whether a startup or an existing business, the choice between issuing a line of credit or a traditional loan can have a considerable impact on an organisation’s risk exposure, profitability, and relationship with its customers. From […]
Essential Guide to Loan Management System: Efficiency, Scalability, Profitability
Today, the lending landscape is promising for ambitious lenders. For instance, the estimated credit gap of INR 33 trillion in Micro, Small, and Medium Enterprises (MSMEs) presents an opportunity for lenders to service this sector more efficiently. However, existing systems cannot accurately underwrite MSME businesses due to their unique needs and lack of credit history. Adopting […]