Loan Origination System for Automated Lending Process

Loan Application Flow

Employing the latest in digital workflow technology, Arukus LOS provides the entire range of apps from loan application, assessment, document processing, disbursement and collection.

Ability to Onboard customers Online or Offline
Aadhaar QR code scan to get customer basic information
API based search for existing customer info

OTP based verification
Missed call verification

Arukus LOS captures all the income and expense data as per RBI guidelines

Real Time CIBIL score check of Customer, Coborrower and adult son/daughter

Dynamic product selection based on eligibility criteria
Capture NOC documents if required

Capture loan related information from customer

Additional Info #1

Family Members Count (Male, Female, Earning Members, Above 18 and Below 18)
Family Assert
Poverty Index 1 & 2
Risk Evaluation Question

Additional Info #2

SC Compliance
ESG (Environmental, Social, and Governance) investing in to screen investments based on corporate policies and encourage companies to act responsibly.

KYC Document #1

Captures Borrower and CoÂborrower as well other earning members KYC images (Front and Back both)

KYC Document #2

Aadhar Number Masking
KYC number/ID verification through OCR
Capture Live location

Structured Workflow Driven Process

A comprehensive and interconnected platform that revolutionizes loan origination for Microfinance Institutions (MFIs) and Non-Banking Financial Companies (NBFCs).

Captures Neighbour's Feedback along with recording of audio
Live Location capture

Based on configurable parameters like Center, Product type, Range, Frequency, Tenure, multiple customers can come under one group
Ability to captures Live Location

Ability for the Branch Head (BH) to cross verify the data ensuring compliance is followed at each step Captures the Live location during physical verification

Based on the outcome of Group Trainings (CGT-1 and CGT-2) system allows to ? proceed to next step
Ability to Capture Live Location during trainings

Penny Drop Verification process to verify BANK account of customer
Live location of Field Agent is captured during the verification process

Loan Utilization Check is performed one week after the release of funds to determine if the capital assistance was used for its original intended purpose.

Ability for Customer and Co-Borrower to digitally sign Loan application Form, Agreement and Insurance Forms
Digital Signature verification by BH

Loan amount disbursed to Customer Bank account
Application related data sent to DMS (Document Management System) via API

Ability for Branch Quality Head (BOH) to approve or reject application
EDIT application feature if Rejected
Approval from HUB

LOS Admin Panel

The LOS Administrative section is a web based platform The Central Checking Application manages all checking, providing powerful management capabilities for organizing approval & rejection of loan requests after completion and your business processes efficiently

Application Access Management
Application Form Configuration
Employee Profile Management
Group Formation & Tagging
KYC Document Management
Loan Application Management
Multiple Center Management
Organization Structure Configuration
User Role Management

Central Checking Applications

The Central Checking Application manages all checking, approval & rejection of loan requests after completion and processing of Group Recognition Test data conducted in the LOS App

Approve or Reject Loan Requests
Automatic Masking of Aadhar Card
Customer KYC Verification
Data Analytics & in-depth reporting via dashboard, widgets &charts
Delegate or Assign Tasks down the role hierarchy

Document Management

A completely digitized robust Document Management system that stores pre and post loan documents with the capability to function in low bandwidth and high latent networks.

Compatible for use by auditors and legal advisors
OTP based verification to access documents
Super fast document retrieval using Elastic Search technology

Streamlining Operations: How Loan Origination Systems Empower MFI and NBFCs – A Case Study

In the dynamic landscape of financial services, Microfinance Institutions (MFIs) and Non-Banking Financial Companies (NBFCs) play a pivotal role in extending credit to underserved communities and fostering economic growth. To enhance their operational efficiency and meet the diverse needs of their clientele, these institutions rely on Loan Origination Systems (LOS). These cutting-edge platforms have revolutionized the lending process, enabling MFIs and NBFCs to navigate the complexities of loan origination seamlessly. Let’s explore how Loan Origination Systems have made a tangible impact on these institutions through a few case studies.

Case Study 1: Leading MFI in the rural sector – Expedited Loan Approvals and Enhanced Customer Experience

A leading MFI serving rural communities, faced challenges in processing loan applications efficiently due to a manual and paper-based system. The lengthy process resulted in delayed approvals and frustrated borrowers. Upon implementing Arukus Loan Origination System, the institution experienced a significant transformation. The system streamlined the application process, enabling the MFI to capture applicant data electronically and automate credit checks. Consequently, loan approval time reduced by 40%, leading to heightened customer satisfaction. Additionally, the LOS offered personalized loan products based on borrowers’ needs, contributing to a 25% increase in repeat customers.

Case Study 2: An Emerging NBFC in North East – Mitigating Risks and Improving Portfolio Quality

An emerging NBFC in urban lending operating in the North East of India, sought to enhance its risk assessment capabilities to ensure sustainable growth. Previously, the NBFC relied on manual processes, resulting in a higher default rate. By adopting a Loan Origination System, it was able to integrate advanced risk evaluation algorithms and data analytics into its operations. The system effectively assessed borrowers’ creditworthiness, analyzing variables like repayment history and income patterns. As a result, the institution experienced a 15% reduction in default rates and a corresponding improvement in portfolio quality, attracting more investors and strengthening its financial standing.

Case Study 3: Optimizing Resource Allocation and Increasing Scalability for an established NBFC in East India

An established NBFC catering to diverse customer segments, faced challenges in managing resources efficiently as its loan portfolio expanded rapidly. The institution’s manual processes led to inefficiencies and increased operational costs. With the implementation of a Loan Origination System, they achieved remarkable operational excellence. The LOS streamlined workflow and automated document verification, reducing the need for manual intervention. As a result, resource allocation was optimized, and the institution experienced a 20% reduction in operational costs. The newfound efficiency also enabled the NBFC to scale its operations, venturing into new territories and expanding its customer base.

The case studies above illustrate how Arukus Loan Origination Systems have become indispensable tools for MFIs and NBFCs, empowering them to overcome operational challenges and achieve sustainable growth. Through expedited loan approvals, enhanced risk assessment, and streamlined workflows, these platforms have made a significant impact on the efficiency and effectiveness of these financial institutions. As technology continues to advance, embracing Loan Origination Systems becomes even more crucial for MFIs and NBFCs to remain competitive, relevant, and impactful in their pursuit of financial inclusion and economic development.

Loan Origination System