Should you build a custom LOS from scratch or buy a proven SaaS platform? This decision will define your competitive position for the next 5 years. Here’s the complete analysis.
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Every NBFC, bank, and fintech lender reaches this crossroads: invest 18-36 months and ₹5-15 Cr building a custom Loan Origination System, or go live in 5-7 days with a battle-tested SaaS platform for ₹20-40 lakhs annually.
This isn’t just a technology decision. It’s a strategic choice that impacts your time to market, capital allocation, competitive positioning, and ability to scale. Get it wrong, and you’ll watch competitors process 100x more loans while you’re still building.
Build a proprietary LOS from scratch using internal or outsourced development team.
Full control over features, architecture, and data.
Subscribe to proven SaaS LOS with 300+ pre-built integrations, instant updates,
and guaranteed uptime. Focus on lending, not technology.
Every month delayed is ₹50L–2 Cr in lost revenue
Scenario: Two competing NBFCs decide to enter the personal loan market on 01-Jan-2025.
NBFC A (Build): Starts building custom LOS. Goes live on 01-Jan-2027 (24 months).
Processes 5,000 loans in Year 1 of operations (2027).
NBFC B (Buy): Deploys Roopya on 08-Jan-2025 (7 days). Processes 60,000 loans in 2025,
1,20,000 loans in 2026, 2,00,000 loans in 2027.
By the time NBFC A launches, NBFC B has processed 3,80,000 loans, built a ₹500+ Cr portfolio, optimized
credit models with real data, and captured market share. NBFC A is 3 years behind in market knowledge
and portfolio maturity.
70% of custom software projects fail or exceed budget by 50%+
Team attrition delays projects by 3–6 months
Scope creep increases costs by 40–80%
Hidden complexity discovered mid-project
Maintenance costs increase 20–30% annually
Legacy code makes changes slow and risky
API changes break integrations regularly
Scaling issues emerge at high volumes
Key developer leaves → 6 month knowledge transfer
Hiring specialized talent takes 3–6 months
Salary costs increase 15–20% annually
Team productivity varies widely
Go live in 5–7 days with guaranteed timeline
Battle-tested platform used by 100+ lenders
Predictable monthly costs, no surprises
Vendor handles all technical complexity
Free automatic updates with new features
Platform improves with every customer
Vendor invests ₹10+ Cr annually in R&D
Always on latest technology stack
24/7 support with 15-min response SLA
99.99% uptime guarantee with penalties
Dedicated account manager & success team
Disaster recovery < 15 minutes
Jan 2022: Decided to build custom LOS. Budget: ₹8 Cr. Timeline: 18 months.
Jul 2023: Missed deadline. Only 60% complete. Budget overrun by 40% (₹11.2 Cr spent).
Jan 2024: Finally launched after 24 months. Buggy, incomplete features, only 50% automation.
Jul 2024: Scaling issues at 1,000 applications/day. Re-architecture needed (₹2 Cr more).
Total Investment: ₹13.2 Cr |
Time Lost: 30 months |
Loans Processed: 15,000 in Year 1
Jan 2022: Deployed Roopya LOS in 6 days. Investment: ₹30L annually.
Feb 2022: Processing 500 applications/day. 90% automation. Adding 2–3 new products monthly.
Jul 2023: Scaled to 5,000 applications/day. Launched in 50 cities. Zero downtime.
Jan 2024: Processing 15,000 applications/day. Portfolio: ₹800 Cr. Market leader in segment.
Total Investment: ₹90L |
Time to Scale: 24 months |
Loans Processed: 3,50,000 in 2 years
Empowering financial institutions with cutting-edge lending technology.
