NBFC Software: One Stop Solution for Lending Businesses

July 25, 2022 Admin
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Non-banking financial companies play a crucial role in the financial sector of the Indian economy. They have inherent advantages of a deeper outreach to the public, flexibility in operations, better domain knowledge and feel of the local area. They are better placed to serve the masses in the un-banked areas, particularly in the retail and MSME sector. The total credit of the NBFC sector has already crossed the threshold of Rs. 28 lac crores. The credit intensity of NBFCs, measured by NBFC credit as a ratio of GDP has been rising consistently and stood at 13.7 in 2021 as compared to 8.6 in 2013 -- retail lending forms around 30% of total lending, followed by the MSME sector.


Considering the importance of NBFCs as a purveyor of credit, the Reserve Bank of India has strengthened the regulations over a period of time to ensure a robust credit mechanism for this sector. The NBFC software for Lending Businesses, therefore, assumes great importance in the current scenario.


Lending Operations and the Role of NBFC Software

A comprehensive, well-structured credit mechanism is essential for ensuring a healthy and growing loan portfolio of NBFCs. This requires robust risk management and a streamlined mechanism for operations while ensuring system integrity.


The digitalisation of processes and use of NBFC software thus becomes essential. Such software can provide a one-stop solution for the Lending Business of NBFCs. The software can take care of all aspects of the lending operations while ensuring, speed/efficiency, transparency and effective risk management.

 

Credit Business Process

The initial process involves the on-boarding of a potential borrower and the KYC (know your customer) norms need to be complied with. The credentials of the borrower as regards his past conduct and integrity are required to be examined along with the legal records for defaults and disputes if any. The financials of the borrower need to be studied in detail with reference to income in the case of an individual, and the various applicable financial ratios in the case of a business enterprise. The ratios inter alia include the liquidity ratios, leverage ratios and repayment capacity ratios. For these, the past financial statements and the projections need to be studied thoroughly.


The eligibility amount of the loan also needs to be arrived at as per the prescribed criteria. After the sanction of the loan, the disbursement involves documentation and an accounting process. Post disbursement of loans, there is a need for effective monitoring of loans to ensure the appropriate end use of funds and gauge any signs of stress in the borrower’s account.


All these steps require meticulous compliance and seamless working, for which a robust and customer-friendly NBFC software is an ideal solution.
 

Key features of NBFC software

NBFC software should provide an end-to-end solution and should be scalable and sustainable. It should be installable on the premises of the NBFC and also be enabled for API integration. The software needs to provide straight-through processing with a flexible delivery mechanism.

The NBFC software should be able to provide data aggregation across a wide range of unstructured data to cull out the requisite information. It should be able to handle big data and make use of AI-based algorithms to help in decision-making on credit issues. The NBFC software should also provide financial inclusion and co-lending features. The integration of the entire data collection and its usage needs to be robust with inbuilt security features; the backend features need to be healthy with adequate audit trails.

Needless to say, the NBFC software has to be an 'All IN ONE' product to provide a win-win situation for all the parties and stakeholders.


NBFC software - brought out by ScoreMe Solutions Private Ltd

Taking into account all the above features and requirements, ScoreMe Solutions Private Ltd. provides a unique NBFC software that is a journey towards paperless credit delivery and monitoring. It is a digital end-to-end solution ensuring seamless operations, right from onboarding requests for credit facility through the processes of authentication, data fetching, structuring, analysis, sanction, disbursement and final steps of monitoring and reporting. It’s an ideal NBFC software for both retail and MSMEs, with requisite added features. The Software has innovative tools including, Bank statement Analyser, GSTR return Analyser, Financial Statement Analysis with a direct fetching facility, etc. It takes care of security aspects with OTP/password-based functioning.
 

The software provides the detailed aspects of legal background, defaults etc., to protect the interests of the NBFC and to ensure compliance. The product also provides a credit quality score based on all the important parameters of relevance and is periodically updated.

To conclude, in the current era of digitalisation, all NBFCs need to go in for Digital NBFC Software to optimise their functioning and bring in efficiencies, while ensuring all compliances. Selection of the right kind of high-end, user-friendly software is crucial in this respect and for this, ScoreMe is fully committed to helping you.

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