Loan servicing software is a crucial tool for small businesses and microfinanciers to efficiently manage loans and drive growth. In this blog, we’ll discuss some of the top options available. Loan servicing features include loan management and lead management functionalities.
What Is Loan Servicing Software?
Loan servicing software is a computer program designed to help financial institutions, like banks or lending companies, manage and handle loans efficiently. When a customer borrows money from a lender, they have to pay it back over time with interest. Loan servicing software assists in managing these loans throughout their entire life cycle.
Here are just some features of loan servicing software:
- Loan Origination: When a borrower applies for a loan, the software helps collect and process their information, such as personal details, financial history, and the amount they want to borrow.
- Loan Approval: The software helps the lender evaluate the borrower’s eligibility for the loan based on their information and creditworthiness.
- Loan Disbursement: If the borrower is approved, the software facilitates the disbursement of the loan amount to the borrower’s account.
- Loan Repayment: Once the customer receives the money, they start repaying the loan in installments over a specified period. The software keeps track of these payments and sends reminders to borrowers about due dates.
- Interest and Fees: Loan servicing software also calculates the interest and any additional fees owed by the borrower, ensuring accurate accounting.
- Delinquencies and Collections: If a borrower misses a payment or becomes delinquent, the software can assist in managing collections and resolving the issue.
The Best Loan Servicing Software
Here are some of the best loan servicing software available on the market for small businesses.
LendingPad is a cloud-based loan origination system (LOS) designed for mortgage lenders. It streamlines the mortgage lending process with an intuitive interface, automated underwriting, and compliance features. The platform also offers document management, integration options, and real-time pipeline tracking for efficient operations.
CreditOnline is an integrated loan management software designed for efficient lending operations. It connects relevant parties within a modern lending ecosystem, suitable for financial institutions, alternative lenders, and retailers. The software supports loan origination, leasing, refinancing, factoring, P2P lending, crowdfunding, and marketplace activities.
Tarya Fintech is a full-stack loan servicing software for small businesses, offering a comprehensive end-to-end lending platform to launch various financial lending products swiftly. With Tarya Fintech, businesses can avoid the need for multiple vendors, ensuring a seamless and efficient loan origination and servicing process. The modular solution encompasses easy loan origination, risk assessment, loan lifecycle management, and an advanced collection system, offering a one-stop-shop solution for businesses venturing into the financial sector.
“EzyCollect” is a cloud-based accounts receivable and debt collection software designed to automate and streamline the collections process. It helps businesses enhance cash flow by sending automated reminders, tracking debtors, and facilitating personalized communication with customers. With seamless integration with accounting systems, ezyCollect provides real-time reporting and valuable insights into receivables performance. This user-friendly solution is suitable for businesses of all sizes, offering efficient collections management and improved cash flow optimization.
Calyx Point’s intuitive interface and comprehensive tools simplify the loan origination and servicing process, making it ideal for small lenders. Calyx Point streamlines borrower data collection, credit analysis, and document management. It also facilitates compliance with industry regulations, providing peace of mind to small businesses. With its customizable features and scalability, Calyx Point empowers small lenders to manage loans effectively and drive growth.