Our client, a leading Indian Business Correspondent in microfinance, leverages its deep expertise in rural finance and financial inclusion. Smartinfologiks has helped them pioneer a unique approach that blends traditional loan processing with cutting-edge digital solution. This innovative phygital model empowers them to conduct robust credit assessments, enabling faster and simpler loan processing for their clients.
Borrower information was entered manually into separate forms within the Loan Application Form (LAF). This repetitive process often resulted in errors and inconsistencies across these forms, such as income discrepancies or typos in contact details. These inconsistencies caused delays as Loan Officers (LOs) and borrowers needed to clarify discrepancies, extending the application process
The process relied on handoffs between Relationship Officers (ROs) and Business Managers (BMs) with the LAF being shared for approval. This created bottlenecks and slowed down the overall process. Information could get lost during these handoffs, and delays occurred if the BM had questions or needed clarifications from the RO.
If the BM found any discrepancies in the LAF, they would notify the RO, who then had to manually make corrections within the system. This back-and-forth communication was time-consuming and frustrating for both the borrower and loan officers, further delaying loan approvals.
CRIF checks (conducted during the Pre-CAM stage) were separate from the comprehensive evaluation (CAM stage). This disjointed approach could lead to rework if the CRIF check revealed issues, such as a low credit score, later in the process.
Loan origination systems expedited the application process by automating document intake, data capture, and management. Seamless integration with credit bureaus and other relevant data sources facilitated swift verification of borrower's information, ultimately leading to faster loan decisions and improved customer satisfaction.
Leveraging advanced credit scoring models, the loan origination system facilitated a comprehensive risk assessment.These models, in conjunction with pre-defined, automated decision rules, automated the Pre-CAM (Cash Assessment Memorandum) generation process, ensuring efficient and accurate loan evaluations.
Workflow automation streamlined the loan processing timeline, ensuring a faster response for customers at every step. Furthermore, the system provided secure online access to credit report and loan terms, allowing for transparent and informed decision-making.
Loan origination system fostered automated disbursement approvals based on pre-defined criteria and thorough validations, ensuring swift access to customers' funds once approved, and streamlining the entire loan process for both borrowers and lenders.
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