NBFC Software Features for MSME Loans

Updated On : May 2023

A NBFC software suite makes it easier to manage credit risk, compliance requirements, loan origination, and customer service. The decision-making software helps simplify the process of providing MSME loans. There are many features of NBFC software that are specific to MSME loans and can help organisations benefit from them. It definitely pays off in the long run for NBFCs to invest in specialized software for MSME loans.

Essential Features of NBFC Software

Non-banking financial companies (NBFCs) face constant shifts in the industry that require them to get hold of reliable and feature-rich software that helps them manage their MSME loan operations. To meet this demand, the NBFC software that they choose needs to have essential features that make loan disbursement, repayment tracking, reporting, and many more such tasks easier.

Here are some must-have NBFC software features that can help boost MSME loan operations:

• Loan origination and underwriting: Automated software helps streamline the loan application and underwriting process by quickly reviewing customer credit history and records.
• Customer Relationship Management (CRM): A CRM system helps manage customer data from one central location. It offers a unified view of all customer information, enabling you to deal with customers promptly and efficiently.
• Electronic signature capture: This feature allows customers to digitally sign documents quickly and securely, reducing paperwork and expediting the loan process.
• Automated repayment reminder notifications: Automating payment reminders not only reduces administrative work but also helps improve debt collection rates by proactively reminding customers when their payments are due.
• Data security: Sensitive customer information needs to be kept secure at all times in order to protect businesses from data breach liability. An NBFC software that has robust data protection measures in place, such as strong encryption protocols and secure servers, to ensure customers’ data is never compromised would be apt.

Assessing Loan Eligibility

When it comes to MSME loan eligibility, NBFC software can make the process of approving and managing MSME lending easier and more efficient. The software allows for faster assessment of eligibility for borrowers as well as greater accuracy in determining who is eligible for loans and who isn’t.

Some of the features that NBFC software provides in order to assess loan eligibility include:

• Automated credit checks – The software offers automated credit scoring capabilities which enables organisations to quickly assess a borrower’s creditworthiness based on their financial statements. This helps them decide whether a candidate is suitable for a loan or not.
• Automated KYC checks – The software also has automated KYC checks that enable its users to quickly validate the identity of borrowers. This allows for quick verification and helps reduce the fraud risks associated with MSME lending.
• Automated Risk Analysis – The software provides an automated risk analysis tool that allows users to quickly understand the risk profile of every borrower, helping them make informed decisions about loan approvals and other related matters.

When used effectively, NBFC software can help streamline the process of assessing loan eligibility while ensuring accuracy in the assessment results. This can help lend credibility to businesses while boosting their efficiency at the same time.

Benefits of NBFC Software for MSMEs

For MSMEs looking to access loans from NBFCs, the benefits of using NBFC software are many. The NBFC software is designed to provide a seamless and secure online loan application process. It provides a set of powerful tools that enable MSMEs to apply for loans, track their progress, and receive quick decisions on their applications.

Using NBFC software guarantees greater accuracy and efficiency when it comes to loan processing, enabling lenders to make smarter decisions about who they lend to.

Some of the software’s key features are listed below:

• Automated risk analysis:
  Helps lenders assess the creditworthiness of potential borrowers by analyzing their financial history and credit score.
• Streamlined loan application:
  Makes it easy for MSMEs to apply for loans with a user-friendly interface that minimizes the need for paperwork.
• Advanced analytics:
  Helps lenders measure the performance of their portfolio by tracking key performance indicators such as loan delinquency rates and repayment rates.
• Regulatory compliance:
  Ensures that lenders comply with local and international regulations related to lending practices and customer privacy.
• Collaborative decision-making:
  Enables lenders to quickly make decisions on loan applications based on collective input from multiple stakeholders within the organization.

These features provide an advantage not just for lenders but also for MSMEs looking for flexible financing options in an increasingly competitive marketplace.

Conclusion

Comprehensive NBFC software helps NBFCs streamline their processes, maintain customer relationships, and develop a credit scoring model for MSME loans. The features of the software, from automated loan origination to automated credit scoring and risk management, help NBFCs provide a better and more efficient loan service to MSMEs. This, in turn, helps MSMEs improve their creditworthiness and helps NBFCs reduce risk and increase profits. By having an advanced NBFC software system, NBFCs can increase their ability to better serve and manage their MSME loan portfolio.

Nelito Systems excels at working with NBFCs of all sizes. The wide range of products in its stable ensures that NBFCs can partner with Nelito for their digital consulting needs at every stage of their growth. Learn more about our FinCraft^TM NBFC Software.