The Loan Origination System handles everything from the moment a customer applies until the money is disbursed into their account. For payday loans, this entire journey must complete in under 5 minutes to meet customer expectations.
LOS Objective for Payday Loans
Convert qualified applicants to disbursed loans in under 5 minutes with 95%+ automation and zero manual intervention.
Step 1: Customer Application (30-60 Seconds)
What Happens
Customer downloads your mobile app or visits your website and starts the loan application. The goal is to collect only essential information quickly.
Information Collected
- Mobile number (primary identifier)
- Name, date of birth, gender
- PAN number (for identity and credit check)
- Employment type (salaried/self-employed)
- Monthly income
- Loan amount requested
- Purpose of loan (optional)
How Roopya Optimizes This
- Mobile-First Design: Native iOS/Android apps with seamless UX designed for 60-second application
- Smart Prefill: Returning customers have data prefilled – they only select loan amount
- Progressive Disclosure: Ask only essential questions upfront, gather rest later if approved
- Input Validation: Real-time validation prevents errors and speeds up process
- Save & Resume: Application auto-saves – customers can return anytime
- Multilingual Support: Available in 11 Indian languages for wider reach
Typical Time: 30-60 seconds | Automation Level: 90% (minimal manual data entry)
Step 2: Identity Verification – KYC (15-20 Seconds)
What Happens
System verifies the customer’s identity using Aadhaar and PAN to ensure they are who they claim to be and meet legal requirements.
Verification Steps
- PAN Verification: Validate PAN number, check name match, fetch DOB
- Aadhaar Verification: OTP-based Aadhaar verification or DigiLocker integration
- Face Match: Selfie photo matched with Aadhaar photo using AI
- Address Verification: Extract address from Aadhaar/DigiLocker
How Roopya Optimizes This
- Real-Time API Integration: Instant Aadhaar OTP verification via UIDAI API
- DigiLocker Integration: Pull verified documents directly from government repository
- AI Face Matching: 99.9% accurate face match between selfie and Aadhaar photo
- Parallel Processing: PAN and Aadhaar verification run simultaneously
- Auto-Retry: If verification fails, system auto-retries with alternate methods
- Duplicate Detection: Check for existing customers using PAN/Aadhaar
Typical Time: 15-20 seconds | Automation Level: 100% (fully automated)
Step 3: Fraud Detection – Device & Behavioral Analysis (5-10 Seconds)
What Happens
System analyzes device, location, and behavior patterns to detect potential fraud before investing in expensive credit checks.
Fraud Checks Performed
- Device Fingerprinting: Capture device ID, IMEI, OS, browser fingerprint
- Location Verification: GPS coordinates, IP address, location history
- Duplicate Detection: Check for duplicate applications from same device/location
- Velocity Checks: Monitor application frequency and patterns
- Behavioral Analysis: Time spent on each field, navigation patterns, copy-paste detection
- SIM Check: Verify mobile number age and carrier
How Roopya Optimizes This
- Multi-Layer Fraud Models: 7 different fraud detection algorithms running in parallel
- ML Fraud Score: Real-time fraud probability score (0-100) for each application
- Device Graph: Build relationship network to detect fraud rings
- Location Intelligence: Flag mismatches between GPS, IP location, and Aadhaar address
- Behavioral Patterns: Detect automated bots and suspicious behavior
- Fraud Rules Engine: Configurable rules like “reject if more than 3 applications from same device in 24 hours”
Typical Time: 5-10 seconds | Automation Level: 100% | Result: Fraud score 0-100
Step 4: Credit Bureau Pull (10-15 Seconds)
What Happens
System pulls credit report from bureaus (CIBIL, Experian, Equifax) to assess creditworthiness and check for existing obligations.
Data Retrieved
- Credit Score: Primary metric for creditworthiness (300-900)
- Credit History: Number of loans, credit cards, payment history
- Delinquencies: Any defaults, write-offs, or overdue accounts
- Credit Utilization: How much existing credit is being used
- Recent Inquiries: How many times credit was checked recently
- Outstanding Obligations: Total outstanding debt across all lenders
How Roopya Optimizes This
- Parallel Bureau Calls: Query CIBIL and Experian simultaneously for redundancy
- Cached Responses: If customer applied recently (within 7 days), use cached report
- AI Report Parsing: Automatically extract 50+ data points from bureau report
- Debt Calculation: Calculate total monthly obligations from all existing loans
- Red Flag Detection: Automatically flag high-risk indicators (write-offs, multiple inquiries)
- Fallback Logic: If one bureau fails, automatically try alternate bureau
Typical Time: 10-15 seconds | Automation Level: 100% | Cost: ₹15-25 per pull
Step 5: Bank Statement Analysis (20-30 Seconds)
What Happens
Customer uploads bank statement or connects via Account Aggregator. System analyzes 3-6 months of transactions to verify income and assess stability.
Analysis Performed
- Income Detection: Identify salary credits and their frequency
- Income Stability: Check consistency of salary over past 3-6 months
- Expense Analysis: Calculate monthly expenses and spending patterns
- Bounce Detection: Check for cheque/ECS bounces indicating financial stress
- EMI Detection: Identify existing loan EMIs to calculate obligations
- Balance Patterns: Analyze minimum and average balance trends
- Irregular Income: Detect cash deposits or irregular income sources
How Roopya Optimizes This
- Account Aggregator Integration: Fetch bank statements with customer consent (DPDPA compliant)
- PDF Upload Option: Customers can also upload PDF statements
- AI-Powered Parsing: Extract and categorize 100+ transaction types automatically
- Income Verification: Accurately identify salary even with varied descriptions
- Affordability Calculator: Calculate disposable income after expenses and obligations
- Fake Statement Detection: ML models detect tampered or fake statements
- Multi-Bank Support: Works with 100+ Indian banks
Typical Time: 20-30 seconds | Automation Level: 100% | Cost: ₹10-20 per analysis
Step 6: Employment Verification (Optional – 10-15 Seconds)
What Happens
For salary advance products integrated with employers, verify employment status and salary directly from HR/payroll systems.
Verification Methods
- Employer API: Real-time API call to employer’s HR/payroll system
- EPFO Database: Check EPFO records for employment history
- Salary Slip Upload: OCR extraction from uploaded salary slip
- HR Contact: Automated verification call/email to HR (rarely used)
How Roopya Optimizes This
- Employer API Integration: Pre-built integrations with 50+ payroll providers (SAP, Zoho, GreytHR, etc.)
- EPFO Integration: Check employment and salary from EPFO database
- OCR Engine: Extract data from salary slip with 98% accuracy
- Income Cross-Check: Match salary from multiple sources for accuracy
- Earned Wage Calculation: For EWA products, calculate exact earned amount based on working days
Typical Time: 10-15 seconds (if required) | Automation Level: 100%
Step 7: Automated Underwriting & Credit Decision (5-10 Seconds)
What Happens
System combines all collected data and runs it through credit models and business rules to make instant approve/reject decision with loan amount and interest rate.
Decision Factors
- Credit Score: Minimum threshold (typically 650+)
- Fraud Score: Maximum acceptable fraud risk
- Income Verification: Salary must be verified and stable
- Debt-to-Income Ratio: Total obligations should be under 50-60% of income
- Delinquency History: No recent defaults or write-offs
- Bureau Inquiries: Not too many recent credit inquiries
- Bank Statement Health: No excessive bounces or declining balance
- Cooling-Off Period: Compliance with RBI cooling-off requirements
How Roopya Optimizes This
- ML Credit Models: Gradient boosting models trained on millions of loans predict default probability
- Rule Engine: Configurable business rules for minimum criteria (score, income, etc.)
- Scorecard Builder: No-code scorecard builder to create custom scoring models
- Risk-Based Pricing: Automatically calculate loan amount and rate based on risk profile
- Multi-Model Strategy: Run multiple models and ensemble predictions for accuracy
- Champion-Challenger: A/B test new credit models against production model
- Explainable Decisions: Provide clear reasons for rejection (for customer service)
- Manual Override Queue: Edge cases automatically sent to underwriters
Typical Time: 5-10 seconds | Automation Level: 95%+ | Approval Rate: 40-60%
Step 8: Offer Generation & Display (5 Seconds)
What Happens
If approved, system generates customized loan offer with approved amount, interest rate, tenure, fees, and total repayment amount. Offer is displayed to customer instantly.
Offer Details
- Approved Loan Amount: May be less than requested based on affordability
- Interest Rate: Daily/monthly rate based on risk profile
- Tenure: 7, 15, or 30 days typically
- Processing Fee: Transparent upfront fee
- Total Repayment: Clear display of total amount to be paid
- Repayment Date: Next salary date or 7/15/30 days from disbursement
- EMI Breakdown: If multiple installments, show schedule
How Roopya Optimizes This
- Dynamic Offer Generation: Personalized offers based on credit profile
- Multiple Tenure Options: Show 2-3 tenure options (7/15/30 days) and let customer choose
- Clear Disclosure: RBI-compliant disclosure of all charges in simple language
- EMI Calculator: Interactive calculator to see impact of different amounts/tenures
- Pre-Approved Limit: For good customers, show pre-approved credit limit for instant future loans
- Comparison View: Show how this offer compares to previous loans (for repeat customers)
Typical Time: 5 seconds | Automation Level: 100%
Step 9: Loan Agreement Generation (10 Seconds)
What Happens
System generates legally compliant loan agreement document with all terms and conditions customized for this specific loan.
Agreement Includes
- Lender and Borrower Details: Names, addresses, contact info
- Loan Details: Amount, rate, tenure, fees, repayment schedule
- Terms & Conditions: Rights, obligations, penalties, prepayment terms
- RBI Disclosures: Mandatory disclosures per digital lending guidelines
- Grievance Redressal: Contact details for complaints
- Cooling-Off Period: Right to cancel within 24 hours
How Roopya Optimizes This
- Template Engine: Pre-approved legal templates with dynamic field insertion
- Multi-Language Support: Agreements available in 11 Indian languages
- RBI Compliance: All mandatory disclosures automatically included
- Digital Format: Generated as PDF ready for e-signature
- Version Control: Track agreement versions and updates
- Custom Clauses: Add product-specific or lender-specific clauses easily
Typical Time: 10 seconds | Automation Level: 100%
Step 10: Electronic Signature – E-Sign (15-30 Seconds)
What Happens
Customer reviews the loan agreement and signs electronically using Aadhaar-based e-signature, making it legally valid.
E-Sign Process
- Customer reviews agreement on mobile/web
- Clicks “Sign” button to initiate e-sign
- Redirected to NSDL/ESP for Aadhaar OTP verification
- Enters Aadhaar-linked mobile OTP
- Document is digitally signed and legally binding
- Signed copy sent to customer and stored securely
How Roopya Optimizes This
- Multiple E-Sign Providers: Integration with NSDL, Digio, Leegality for redundancy
- Seamless Experience: Embedded e-sign flow – no redirects or downloads needed
- Auto-Retry: If e-sign fails, automatically offer alternate provider
- Document Preview: Show clear summary before e-sign
- Multi-Language: Agreement shown in customer’s preferred language
- Cooling-Off Notice: Clear message about 24-hour cancellation right
- Automatic Storage: Signed document stored in secure vault automatically
Typical Time: 15-30 seconds | Automation Level: 100% | Cost: ₹5-10 per e-sign
Step 11: Bank Account Verification (10-15 Seconds)
What Happens
Before disbursement, verify that the bank account provided belongs to the customer and is active to prevent disbursement fraud.
Verification Methods
- Penny Drop: Transfer ₹1 to account and check if successful
- Account Holder Name Match: Verify name on account matches customer name
- Account Status: Check if account is active (not frozen/closed)
How Roopya Optimizes This
- Instant Penny Drop: API-based penny drop completes in 10 seconds
- Name Matching Algorithm: Fuzzy matching to handle name variations (initial, spelling differences)
- Account Caching: Skip verification for repeat customers with same account
- Multiple Verification Providers: Razorpay, Cashfree, PayU – use best performing one
- Fallback Options: If verification fails, allow manual verification or alternate account
Typical Time: 10-15 seconds | Automation Level: 100% | Cost: ₹3-5 per verification
Step 12: Automated Disbursement (30-60 Seconds)
What Happens
Money is transferred from lender’s account to customer’s bank account instantly using IMPS or UPI.
Disbursement Process
- System initiates payment through integrated payment gateway
- Money transferred via IMPS/UPI (instant) or NEFT (same-day)
- Transaction confirmation received from bank
- Customer receives SMS/notification about credit
- Loan account activated in LMS
How Roopya Optimizes This
- Multiple Payment Channels: IMPS, UPI, NEFT/RTGS for redundancy
- Smart Routing: Choose fastest/cheapest channel based on amount and time
- Instant IMPS: Funds reach customer in 30-60 seconds for 24/7 availability
- Automatic Reconciliation: Match disbursement with loan account automatically
- Failed Disbursement Handling: Auto-retry logic with alternate accounts/methods
- Real-Time Notifications: SMS, push notification, email to customer and ops team
- Disbursement Dashboard: Monitor all disbursements in real-time
Typical Time: 30-60 seconds | Automation Level: 100% | Cost: ₹2-10 per transaction
Step 13: Customer Notification (5 Seconds)
What Happens
Customer receives confirmation that loan has been disbursed with repayment details and next steps.
Notifications Sent
- SMS: Loan disbursement confirmation with amount and repayment date
- Email: Detailed email with loan agreement, repayment schedule, T&C
- WhatsApp: Confirmation message on WhatsApp with payment link
- Push Notification: In-app notification for mobile app users
- Portal Update: Loan details visible in customer portal
How Roopya Optimizes This
- Omni-Channel Delivery: Send on all channels simultaneously for high reach
- Personalized Messages: Templates with customer name, amount, date dynamically inserted
- Multi-Language: Messages in customer’s preferred language
- RBI Compliance: All mandatory disclosures included in notifications
- Document Delivery: Signed loan agreement sent via email and WhatsApp
- Payment Instructions: Clear instructions on how to repay with payment links
Typical Time: 5 seconds | Automation Level: 100%
Step 14: Accounting Entry (5 Seconds)
What Happens
Loan disbursement is recorded in the accounting system with appropriate journal entries for audit and financial reporting.
Accounting Entries
- Debit: Loan Receivable (Asset account)
- Credit: Bank/Cash (Asset account) – for principal disbursed
- Debit: Bank/Cash (processing fee received upfront if applicable)
- Credit: Fee Income (Revenue account)
How Roopya Optimizes This
- Automated Journal Entries: All accounting entries created automatically
- GL Integration: Direct integration with Tally, QuickBooks, Zoho Books, SAP
- Configurable COA: Map loan products to your chart of accounts
- Real-Time Posting: Entries posted immediately, no batch processing
- Audit Trail: Complete log of all accounting transactions
- Reconciliation: Automatic bank reconciliation
Typical Time: 5 seconds | Automation Level: 100%
Step 15: Handoff to LMS (Instant)
What Happens
Loan data is handed off from LOS to LMS for ongoing servicing, payment tracking, and collections. This transition is seamless since Roopya LOS and LMS are integrated.
Data Transferred
- Customer information and KYC documents
- Loan agreement and terms
- Repayment schedule
- Bank account details
- Credit score and underwriting data
- Communication preferences
How Roopya Optimizes This
- Unified Platform: LOS and LMS are one system – no integration needed
- Single Database: All data in one place, no duplication or sync issues
- Instant Availability: Loan data immediately available to servicing team
- 360° View: Complete customer view from origination through repayment
Typical Time: Instant | Automation Level: 100%
LOS Complete: Application to Disbursement in Under 5 Minutes
Total Time: 3-5 minutes for 95% of applications
Automation Level: 95%+ – only 2-5% need manual review
Staff Required: Zero for auto-approved loans, 1-2 underwriters for exceptions
Customer Drop-Off: Under 15% with instant approval vs 60%+ with 24-hour TAT
