Loan CRM Software for Bank, NBFC, Fintech, MFI and RRB


What is a Loan CRM?

Loan CRM software is specifically designed for lenders like a Bank, NBFC, Fintech, MFI and RRB to manage customer interactions throughout the loan lifecycle. Think of it as a central hub for:

  1. Leads & Applications: Capture, manage customer loan journey, qualify & route leads, track loan applications through stages, automate document collection & communication.
  2. Customer Management: Store & access detailed borrower data, personalize communication, send targeted campaigns, & manage relationships.
  3. Deal Pipeline: Visualize loan progress, manage tasks, set reminders, & collaborate across teams to accelerate approvals.
  4. Reporting & Analytics: Track key metrics (conversion rates, approval times, etc.), generate reports & dashboards, & gain insights to improve efficiency & profitability.

A Loan or a lending CRM can boost conversion rates by 20%, shorten approval times by 30%, & increase customer satisfaction by 15%. It’s a must-have for any lender seeking a smoother, faster & more customer-centric loan process.

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Loan CRM Software for Bank, NBFC, Fintech, MFI and RRB

What are the 5 steps of Loan Origination in a Lending CRM Software for a Bank, NBFC, Fintech, MFI and RRB?

Steps of Loan Origination in a Lending CRM Activities Performed in the Loan CRM
Lead Generation & Capture Marketing campaigns, website forms, referrals
Loan Application & Data Collection Online application forms, document uploads, e-signatures
Creditworthiness Assessment & Underwriting Credit score checks, income verification, employment verification
Loan Approval & Disbursement Loan offer presentation, contract signing, fund transfer
Loan Servicing & Repayment Payment processing, account management, delinquency tracking

Here are some key things to take care of while performing loan origination in a lending software:

  1. Data Accuracy and Completeness:
  • Verify all borrower information: Double-check personal details, employment information, income statements, and bank account details against original documents.
  • Ensure document authenticity: Use software features to verify document authenticity and prevent fraud.
  • Complete all required fields: Missing information can delay processing and create confusion.
  1. Compliance and Regulation:
  • Follow all relevant lending regulations: Stay updated on any changes and ensure the software aligns with legal requirements.
  • Maintain proper documentation: Keep records of all communication, approvals, and decisions related to the loan.
  • Respect borrower privacy: Comply with data privacy regulations and protect borrower information.
  1. Process Efficiency and Automation:
  • Utilize the software’s automation features: Streamline tasks like document collection, credit checks, and communication to save time.
  • Follow established workflows: Utilize the software’s pre-defined workflows to ensure consistency and avoid errors.
  • Communicate effectively: Keep borrowers informed about the progress of their application and address their queries promptly.
  1. Risk Management and Due Diligence:
  • Thoroughly assess creditworthiness: Utilize the software’s risk assessment tools and analyze the borrower’s financial health.
  • Identify potential red flags: Be aware of signs of fraud or misrepresentation of information.
  • Set appropriate loan terms: Consider the borrower’s risk profile and ability to repay before finalizing the loan offer.

How is Customer Loan KYC process managed in a Loan CRM?

KYC (Know Your Customer) process in a Loan or Lending CRM (Customer Relationship Management) system is tailored to comply with the guidelines set by the Reserve Bank of India (RBI) and other regulatory bodies. The process is designed to prevent identity theft, financial fraud, money laundering, and terrorist financing. Here’s a more detailed and factual description of how the KYC process is managed in a Loan CRM system in India:

  • Initial Customer Onboarding: During the initial phase of loan application, the CRM system collects basic information from the customer. This includes name, date of birth, PAN (Permanent Account Number), and Aadhar number. Aadhar and PAN are crucial for KYC in India and are used across financial services for identity verification.
  • Document Collection and Verification: The customer is required to submit KYC documents, which typically include a photograph, proof of identity (Aadhar card, PAN card, passport, voter ID), and proof of address (utility bills, bank statements, Aadhar card). The Loan CRM system tracks these documents and their verification status. Modern CRM systems in India often integrate with UIDAI (Unique Identification Authority of India) for biometric verification and with NSDL (National Securities Depository Limited) for PAN verification, automating the identity verification process.
  • Risk Assessment: The CRM may incorporate or integrate with external systems to conduct a risk assessment of the customer. This includes credit score checks from CIBIL (Credit Information Bureau (India) Limited) or other credit bureaus, analysis of financial behavior, and screening against regulatory databases for PEPs (Politically Exposed Persons) or individuals on sanctions lists.
  • Compliance Checks: In line with RBI guidelines, the CRM system ensures compliance with Anti-Money Laundering (AML) standards and Combating the Financing of Terrorism (CFT) regulations. This involves continuous monitoring of transactions and screening against national and international watchlists.
  • Data Storage and Management: All KYC information collected is stored securely within the CRM system, ensuring data privacy and security as per the Information Technology (IT) Act, and the Personal Data Protection Bill (as proposed). This data storage is crucial for audit trails and regulatory inspections by the RBI or other financial authorities.
  • Ongoing Monitoring and Customer Due Diligence: The system is designed for regular updating of customer KYC details, monitoring transactions for suspicious activities, and reassessing the risk profile of customers. Enhanced Due Diligence (EDD) is performed for high-risk categories.Integration with Loan Management and Processing: The KYC process is fully integrated with loan application, underwriting, disbursement, and servicing within the CRM system. This ensures a seamless flow of information and compliance throughout the customer lifecycle.
  • Reporting and Analytics: The Loan CRM offers reporting tools for compliance officers and management to track the efficiency of the KYC process, identify trends, and report suspicious activities to the Financial Intelligence Unit – India (FIU-IND) as required under the Prevention of Money Laundering Act (PMLA).
  • Digital KYC Solutions: In recent years, the RBI has allowed for Digital KYC processes, where verification is done through digital channels, including e-KYC via Aadhar, video customer identification process (V-CIP), and QR code-based Aadhar verification. These digital solutions are increasingly being integrated into Loan CRM systems to streamline the KYC process, making it faster and more user-friendly.

The RBI regularly updates its KYC norms to strengthen the financial ecosystem against fraud and to enhance customer due diligence. Loan CRM systems in India are, therefore, continually evolving to incorporate these changes and leverage technology for more efficient and secure KYC processes.

How does Roopya help a Lender like Bank, NBFC, Fintech, MFI and RRB to manage loan origination in a CRM software?

Roopya helps lenders streamline and improve their loan CRM and origination process in several factual ways:

  1. Roopya CRM Features:
  • Automated lead capture and management: Roopya captures leads from various sources and automates follow-up tasks, increasing conversion rates.
  • Centralized customer data management: Stores and manages detailed borrower data, facilitating personalized communication and relationship building.
  • Targeted marketing campaigns: Enables lenders to create and launch targeted marketing campaigns for specific borrower segments, improving lead quality.
  • Analytics and reporting: Provides insights into customer behavior and loan performance, helping lenders make informed decisions and optimize campaigns.
  1. Loan Origination Features:
  • Pre-built customer journey: Roopya offers pre-built workflows for various loan types, guiding borrowers through the application process efficiently.
  • Automated document collection and verification: Enables electronic document submission and verification, reducing manual work and fraud risks.
  • AI-powered creditworthiness assessment: Utilizes over 350 data points for creditworthiness analysis, leading to faster and more accurate decisions.
  • Compliance management: Ensures adherence to relevant regulations and industry standards throughout the loan lifecycle.
  • Early warning system: Identifies potential loan defaults early on, allowing lenders to take preventive measures and minimize losses.
  • Integration with other systems: Integrates with core banking systems and third-party platforms for seamless data exchange and improved efficiency.

How Roopya makes a difference in lending ecosystem:

  1. Reported 20% increase in conversion rates: Lenders using Roopya report a 20% increase in their loan conversion rates.
  2. Reduced approval times by 30%: Roopya’s automation features can reduce loan approval times by 30%, leading to faster access to funds for borrowers.
  3. Improved compliance: Roopya’s built-in compliance features help lenders stay compliant with regulations, reducing audit risks.
  4. 100% proprietary technology: All core components of Roopya’s platform are developed in-house, ensuring robust security and control.

Overall, Roopya acts as a comprehensive platform that offers lenders a range of tools and features to streamline their loan CRM and origination processes, improve efficiency, and make data-driven decisions, ultimately leading to better customer experience and business results.

Best In-class Featuresimg

  • Easily create customized forms and applications
  • Track and monitor loan applications
  • Verify identities and documents
  • Provide a self-service portal for customers on both web and mobile platforms
  • Pre-built reporting and MIS capabilities
  • Designed with security and data privacy as a top priority
  • Configurable workflows to accommodate multiparty products
  • Credit risk assessment and modeling
  • Financial insights for underwriting and decision-making
  • Process enforcement and audit trails
  • Fully customizable to meet your business needs