The Back-end of Online In-Principle Sanctions

June 17, 2019 Admin

Online in-principle sanction for a loan is the new category where every Financial Institution is trying to set up its foot prints. The concept was piloted when retail loan aggregators started this concept on by integrating their back-end processing of lead details with a credit bureau. At that time the concept was used to issue Pre-Approved offers for retail customers by analysis of their previous financial track record, repayment schedule and spending pattern.

This soon got the attention of the Lending market and the audience was flooded with Pre-approved offers for housing, car, personal loans and credit cards. Before this every institution was capturing the lead database but for the first time the concept of automated lead processing was launched. But these days the concept have gained momentum in the MSME industry also. Since MSMEs form the backbone of the economy with contribution of close to 50% to the GDP of country, the need to enhance efforts to ease credit for Small loans was the need of the hour. This led to the launch of Online Loan Processing for Business Loans.


These platforms also led to the integration of Fintech along with Financial Institutions for an online journey of the Business Loan proposal. The appraisal for a Business Loan proposal is very comprehensive as compared to a Personal Loan, therefore it required more sophistication in order to prevent Fraudulent Sanctions. That is why the process was automated only to the stage of In-Principle sanctions giving the final authority of sanctioning to the Lender. For Business loan online processing of Bank Account Statement, Financial Statements, KYC document & Basic Information of the applicant company is required. This can be automated by using tools such as Bank Statement Analyzer, Financial Statement Analysis, Data Aggregation for online KYC, GSTR Analysis for capturing the sales & purchases data along with ITR Analysis. ScoreMe’s platform can be integrated with LOS of any Financial Institution to automate the journey of In-Principle Sanction.

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