There are many peculiarities involved in the processing of loan services. Credit Management System enables an organization to manage concerns that are involved in loan processing from loan request to its maturity. Many phases are covered in between, for instance loan request, approval, documentation, schedule, disbursement and maturity. The Credit Management Software enables all phases of corporate financing in a user-friendly and efficient way.
It is an undeniable fact that there is no RDBMS even near to Oracle and as this system has been designed using the same data base, so it is definite that Credit Management System will be functional even if the complexity of the problem increases. Credit Management System is an application, which simplifies the procedures associated with Credit Management.
Loan Processing
This feature allows users to define the individual loan, policy & deduction details, along with a complete guarantor’s information with each loan. It also includes maximum solutions for all the operational issues associated with loan processing. It facilitates users to gather detailed information associated with any client.
Syndicate Information
Every processed and under-process application maintains complete syndicate information. It also allows multiple syndicate information with customized interest rates. Credit Management System possesses attributes to define installment payable by client according to the nature of syndicate (either collective or individual). In case of collective syndicate, Credit Management System helps users to manage all the respective information separately along with customized rates of interest.
Support Multiple Loan Types
Credit Management System can manage different types of facilities depending on organizational needs, for instance Long Term, Short Term Loans, Project Financing, Modarba and Non-funded Transactions. Different available facilities allow multiple options to be offered to client..
Support Multiple Mode of Loan
This feature manages different modes of loan. It contains two basic modes, staggered and constant. The staggered payment option allows user to update information as required after application process. The constant mode will not allow any updates and alterations after supervision. This feature of Credit Management System supports processing of any loan application in a better way and it lets the user split the application into two modes depending on client needs.
Security & Insurance of Security
This feature enables users to record all the information associated with the security against each loan disbursement; it also allows users to record the information regarding insurance of a security.
Credit Management System manages and maintains information regarding security separately, which allows holding details. System facilitates user to enter multiple securities like, fixed assets or shares, it also allows inserting the force sale value, in case the client fails to repay.
Document Management
Credit Management System can maintain a checklist of required documents. This features helps users identify the status of essential documents needed for any loan application.
Management of Multiple Disbursements
Usually, loan of huge amounts consist of multiple disbursements, and this Credit Management System manages them in an organized way. For instance, it maintains a detailed receipt record of each disbursement. Credit Management System also offers option to allow principal grace period or interest grace period or both; some other options allow user to distribute the grace period amount in all remaining installment or a specific number of installments. Credit Management System has an advantage to merge multiple disbursements. It supports the scenario when more than one disbursement are merged into one. This feature gives liberation to be offered to the entity applying for loan.
Link Disbursement with Floater [KIBOR, SBP Discount Rate]
This attribute allows users to link disbursement with all current floaters. Its comprehensive floating policy tool provides exceptional choices to user. For instance, user needs to mention floor and cap rate along with the exposure rate of floater. Credit Management System also generates repayment schedules according to the defined values. Another extensive tool allows users to define any new floater as per market requirement.
Facility of Rescheduling Loans
In the scenario of rescheduling of loan, multiple parameters can be addressed like markup/principal frequency or increase/decrease grace periods. Users can reschedule loan by altering multiple or single parameter depending on the circumstances of client agreement. This capability lets you offer attractive suggestions to clients and also helps you in meeting their satisfaction level in a better way.
Risk Management and Analysis
Using this feature, user can maintain information about the bounced cheques for future aspects associated with applicant. Credit Management System supports users to analyze risk factor involved with any applicant. It also helps management in making decision on the basis of risk analysis. define any new floater as per market requirement.
Automated Repayment Schedule Generation
Credit Management System automatically generates repayment schedule in terms of principal and markup amount separately, which guards user from loads of calculation. System automatically maintains information of received payments according to repayment schedule.
Late Payment Charges (LPC) Management
Usually, a customer does not pay installment on time. Credit Management System allows users to define late payment policy for each customer separately. System also calculates the LPC according to the set of instructions defined to it by users. Moreover, system also facilitates user to enable “not to charge Late Payment Charges”, by using this option system will not charge LPC in order to give ease any specific customer..
Loan Maturity Management
At the time of loan maturity, Credit Management System does a complete verification of the entire deal accordingly. This system has been designed to signal an alert in the condition of prematurity; system also shows the maintained summary status of each disbursement. Using Credit Management System, users also have the capability to mature respective disbursement. In the scenario of pre-maturity, it allows users to manage the pre-mature loan procedure. When users need to premature the loan, Credit Management System automatically applies pre-mature penalty, which is defined during loan disbursement or declaration process.
The system also facilitates user to set pre-payment penalty, which supports the circumstances if customer pre-pays the installment.
Comprehensive Reporting
Reporting is the most vital component of decision making. Credit Management System generates significant reports, which are not only functional for credit administration department but also for the divisions supporting it, for instance accounts department, risk management department, auditors, Clients, Statutory Bodies and other related organizations. List of some imperative reports contains:
Accrual of markup report
Current Client Status Report
Late payment charges report (Customer/Disbursement wise)
Computerized Financial Statement request
Insurance policy expiry letter
Reminder repayment of loan – letter
Monthly Payment Summary
Detail of pledge of shares (In case of shares as a security of loan)
Loan and other facilities sanction details
SBP – Analysis of Interest & Markup
SBP – CIB Report
SBP – LMM Report
SBP – Moderate Growth Report (Sector Wise)
SBP – Quarterly Performance Indicator Report
Credit Management System provides exclusive reporting to Credit Administration Department, which enables them to monitor any specific entity and figure out the involvement of risk associated with it.
Fully Integrated with Financial module
Credit Management System has been designed to get integrated with account module completely. It functions with the following accounting operations:
Payment Voucher for payment of loans.
Receipt Voucher for receipt of installment, other dues and maturity.
Journal Voucher for adjustment of any loans.
In addition the system is designed to be functional even if it is integrated with third party financial modules.
Financial Calculator
Credit Management System is also geared with another very useful tool named as Financial Calculator. Using this feature, users can easily figure out repayment scheduling along with all the details, such as its description, due amount, due date. It also guards users from loads of work and saves time eventually.
Customization of Loan
Credit Management System contains different loan categories, which enable an organization to offer different facilities to clients that meet their specific requirements. This segment helps the system to mold itself as per client needs and guarantees customer satisfaction.
Loan Recovery Management
This system maintains a complete record of transaction associated with loan procedures. This complete record helps the credit administration department to manage the recovery procedure in case the client fails to repay the due amount.
Scalability
Regardless of the extent of your business, whether there are trillion transactions a day or a few thousand. Credit Management System has been designed to support it. The quality of the system has been assured to manage extremely huge set of transactions.
Extremely User Friendly
Easy navigation, well-defined user messages and easy-to -use toolbar make it extremely friendly and accessible application. Comprehensive report parameter screen has been designed to filter undesired information and generate precise reports.
Flexibility
Credit Management System possesses the attributes to mold itself according to the operational changes in business processes and policies. Furthermore, Credit Management System also facilitates its user to define new business policies, which sculpt this system to the business requirements.