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  • Writer's pictureAnjali Verma

Why does a firm require Loan Management Software to manage Gold loans?

According to banks, gold loans outstanding have increased by 45% in the past year.

Gold loans have been a thriving industry for commercial banks and non-banking finance companies, as low-income people and small enterprises continue to suffer from declining incomes. Banks have recorded a 45% increase in gold loans outstanding as of December 2021 compared to the same period the previous year, as a result of customers pledging their gold jewelry for emergency cash. Now the question arises what kind of companies provide gold loans?

Non-banking finance companies (NBFCs) and banks like SBI, ICICI, and HDFC provide gold loans to private customers. NBFCs like Muthoot Finance and Manappuram Finance provide gold loans.

These outstanding businesses require an extraordinary loan management system to simplify the gold loan application process for the customer. The digital service of the loan management system has also increased by 4%. Let’s understand why there is a rapid demand for LMS.

Why does a firm require Loan Management Software?

The financial sector is placing extremely high demands on credit products, including quick processing of loan requests, giving lenders and borrowers scalability and flexibility, boosting cyber safety and compliance, etc.

Digital loans are becoming more available and well-liked because a robust loan management system can handle these demands. As a result, there is an improvement in online lending as well as customer-focused digital platforms. Businesses can employ professional loan management software to target a new generation of clients and improve workflow efficiency.

With SynoFin’s innovative loan management software, NBFCs, and Banks efficiently manage their gold loan journey from acquisition to the recovery of the loan.

Role of SynoFin Loan management software in managing Gold loans:

The SynoFin gold loan software is tailored to fulfill the various needs of the gold loan lending process. The following are some characteristics of our software:

  • Advanced vendor management: Manage track of customer data, asks for basic KYC, and capture required gold details

  • Centralized or decentralized gold review process: Provides documentation for instant access from anywhere

  • Integrated for more Information: With best-in-class fintech integrations, SynoFin provides API integrations with your banking partners

  • A reminder of important points: Capability to record Gold pricing, notifications when the Loan to Value is violated, keeping track of Gold storage, and issuing Gold certificates attesting to Gold possession.

  • Reduced TAT: Helps in loan disbursal with an automated process and workflow-based decisions.

  • Generate timely reports: Provides simple, transparent, and personalized reports

  • Capability to Handle Regulatory: A system to monitor gold prices and fluctuations throughout the lending process will help you to constantly monitor your position.

  • Track Customer Payments: SynoFin Gold loan software has integrated accounting features to capture customers’ interest payments or prepayments.

Nowadays, loan software has practically become a requirement for lending and mortgage organizations, so if you don't have access to the most recent technology, you can find that your operations are falling behind in important areas. For increased productivity and efficiency beginning with the loan application process and continuing after that, a tailored solution might be cloud-based. The system may also be readily scaled to grow with your business while exactly meeting your current demands.

In essence, customized lending software supports and facilitates automation across the process. To produce an efficient procedure throughout the life of the loan, certain programs are integrated with loan servicing software or solutions.

SynoFin offers a reliable and adaptable system for managing gold loans. With SynoFin gold loan software, premium tracking and loan processing calculations are specifically automated. Additionally, it includes useful features and was specially created to meet the technological requirements of overseeing gold loans in India.

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