Top NBFC’s In India 2019 | List of NBFC Companies

List of Top 9 NBFC Companies In India 2019

Top NBFC in india that are offering a variety of services. A company registered under the Companies Act, 1956 engaged in the business of Loans and advances,acquisition,shares/stocks/bonds issued by Government or local authority or other marketable securities of a like nature, leasing, hire-purchase, insurance business, chit business but does not include any institution whose principal business is that of agriculture activity, industrial activity, purchase or sale of any goods (other than securities) or providing any services and sale/purchase
construction of immovable property.

According to research and studies, NBFC’s in India are outperforming banks. NBFC’s in India are playing a major role in the financial sector contributing 12.5% growth in India’s GDP. People are preferring NBFC’s over banks as they find them safe, efficient & quick in assisting with financial services.

List of non banking financial companies in india.

HDB Finacial Services

Power Finance Corporation

        Bajaj Finserv

Mahindra & Mahindra Financial Services Limited

                   Muthoot Finance Ltd.

Cholamandalam Investment and Finance

Shriram Transport Finance Company Limited

Loan Origination Process Steps | Stages of Lending 2019

                                           7 Stages In Loan Origination

Loan Origination Process Steps is the most important & critical stage in the complete Loan servicing of Lending/Financial services.

The Finance Industry is now shifting its focus on Customer engagement & Satisfaction with the elements of design & delivery that fulfills customers’ expectations first.

 For almost every lender the definition of the term Loan origination is different – where it starts, the different stages within the process and where it ends. Every Loan type will have a different approval process that can be manual or automatic.

Lenders have their “secret sauce” when it comes to Loan Origination that they never want to share as Loan origination is what makes Companies stand out from their Competition.

Loan processing System is responsible for managing everything from pre-qualification to the approval of funding the loan.

Loan Origination Process steps:

1) Pre-Qualification Process : 

This is the first step in the Loan origination process.

At this stage, the potential borrower will receive a list of items they need to submit to the lender to get a loan.

This may Include :

 • ID Proof / Address proof: Voter ID, AADHAR, PAN CARD
 • Current Employment Information including Salary slip
 • Credit Score
 • Bank statement & Previous Loan Statement
 • Tax Returns Once this information is submitted to the lending company, Lender reviews the documents and a pre-approval is made, allowing the borrower to continue in the process to get a loan.


 2) Loan Application :

This is the second stage of the Loan origination process.

In this stage, the borrower completes the loan application.

Sometimes this application can be paper-based, but today lenders are shifting towards an electronic version that makes this stage Paperless.

New technologies allow completing the application online through website & mobile app, and collected data can be tailored to specific loan products.



 3) Application Processing :

At this stage, the application is received by the credit department and the first step done by the department is to review it for accuracy, genuine & Completeness.

 If all the required fields are not completed, the application will be returned to the borrower or the credit analyst and they will reach out the borrower to procure the missing information.

Lenders use LOAN ORIGINATION SYSTEM (LOS) to know the creditworthiness of the borrowers.

A good LOS will help a lender setup workflows to process a loan. It can automatically flag files with missing required fields, return it to the borrowers and notify sales/Credit department to rework.

Depending on the organization & product, exception processing might be a part of this stage. Loan Origination Software.


4) Underwriting Process :

When an application is totally completed, the underwriting process begins.

Now Lender checks the application taking a variety of components into account: credit score, risk scores, and many lenders generate their own unique criteria for scoring that can be unique to their business or industry.

Nowadays, this process is fully automated with the help of a rule engine & API integrations with Credit scoring engine (CIBIL, EXPERIAN etc. ) in LOS. In a rule engine, the lender can load underwriting guidelines specific to products.


 5) Credit Decision : 

Depending on the results from the underwriting process, an application will be approved, denied or sent back to the originator for additional information.

If certain criteria don’t match according to the rule engine set in the system, there can be an automatic change in the parameters, such as reduced loan amount or different interest rates.


 6) Quality Check :

Since lending is highly regulated, the quality check stage of the loan origination process is critical to lenders.

The application is sent to the quality control team, that analyze critical variables against internal and external rules and regulations.

This is the last look at the application before it goes to funding.


 7) Loan Funding :

Most loans fund shortly after the loan documents are signed. Second mortgage loans, Business loans, Loan against property and lines of credit may require additional time for legal and compliance reasons.

LOS can track funding and ensure that all necessary documents are executed before or together with funding.


 Checkout AutoCloud- Loan Software for lenders to know how it can help you enhance customer experience and let you customers get loans in less than 5 mins.

My Trepup page is up! Take a look

My Trepup page is up! Take a look: Looking for personal finance and money management software developers in Hyderabad, India? Visit AllCloud Enterprise Solutions Private Limited on Trepup, the world's largest business network enabling businesses and people to connect, communicate and sell easily and securely.

4 Pillars Of Digital-Lending | NBFC Business Model

                    NBFC Business Model and pillars of Digital Lending

NBFC Business Model in india now a days looking forward for Digital Lending Platform which gives your real-time services.

If you look at today’s customer, they don’t compare different financial service providers anymore, they compare Experiences.

Now, Consumers lives are better than ever, with smart digital services being delivered by smartphone.

Booking a taxi, planning holidays, shopping online – It’s all easy, instant and seamless. Today, Customers can buy products and services in few clicks and more importantly, unhappy customers can switch service providers in the fraction of seconds.

The digital-first model has changed the lending Industry forever.

This approach has changed the way how people consume financial services and helping companies become an active part of a customers’ digital life.

To survive when giants like Google make their way into people’s financial lives, NBFC’s must have the right framework in place.

This framework is the digital-first platform on Cloud, supported by Four pillars – Omni-channel Lending, modular Lending, smart Lending, Strong Collections management.

NBFC Business Model According to NBFC Report 2019 Includes:

Pillar One: Omni-channel Lending

Do you remember the traditional approach with soiled channels (branches, house visits, calling etc)? That approach was neither customer friendly, staff friendly nor efficient.

These channels respectively needed their own raft of workflows, content, screen design and other supports, meaning the same functionality is redone many times, with the end results that don’t relate to channels.

It makes sense to do everything at once, and manage all the channels via a central hub.

What’s needed to become a Digital-First NBFC? A central cloud based omni-channel NBFC Software for digital lending to manage interaction across multiple touch points i.e Website, Mobile Apps, Branch etc.

 Over 77% of NBFC consider their current systems as the biggest roadblock to their digital transformation,  while over 50% see them as a medium roadblock to capitalizing on digital opportunities.

Pillar Two: Modular Lending

The ola’s and flipkart’s of India introduce clever new features – quickly and at almost zero marginal cost.

They are agile enough to exceed customer expectations without any major implementations and cost implications.

They easily roll out new services and scale them up or down at will. When it comes to financial service providers, they fail in designing products quickly and launching them.

A modular architecture for NBFC’s will lead to innovation in the same way and in-line with the customer needs.

A strong digital lending platform for NBFC’s with advanced rule-engine and Business process management will help make a modular architecture, that empowers lending institutes to go beyond responding to market realities, to quickly create niche products – in conjunction with the consumers.

A strong Technology platform will empower Agile operations , Transparency , Customer- focused design and products.

Pillar Three: Smart Lending 

From a normal phone to a smartphone. Tv to a smart Tv, car to Driver less Car (Tesla) etc.,

Now everything and everyone is smart. Then why not Smart NBFC?

The secret to getting everything smart is effective use of Data and building Ecosystem as a business model NBFC’s should do effective segmentation, targeting and tracking by collating data from various source and analyzing it to create actionable insights.

Big data is the engine that drives all of these efforts and to make effective use of data, Companies need to invest in new skills – Data Scientists.

This will lead to high fixed expenses as the skill is very Costly.

To reduce fixed expenses, use a smart lending platform with Analytics to leverage all the data to translate into customers and business insights.

Pillar Four: Strong Collections Management:

It is very important for lenders to keep a track of customer location, behaviours and be in regular touch through various channels.

Recovery has always been a major problem for lenders and their employees.

By deploying a smart collections management software(CMS), NBFC’s can build effective communications with customers by automated email, SMS, telephone reminders, Mobile app with instant payment integrators.

Collections Management System will also help recovery team to reduce NPA’s Automate collections, track ground collections and Geo-Tag Locations.

The end goal is to create more efficient operations, higher profits and happier customers.

NBFC’s are already operating within an entirely new financial ecosystem and they must transform their business models to respond and stay relevant.

 In doing so, they have four key pillars for success at their disposal – Omni-channel Lending, Modular lending, Smart Lending, and Strong Collections Management.

5 Reasons Why NBFC’S Must Embrace Smart banking Technology 2020

New Banking Technology Innovations

The NBFC Technology sector in India is revolutionizing. Industry experts believe that the lending market is as big as $600 million and is further growing at a rate of 19% -21%. Alternative lending firms, popularly known as Non-Banking Financial Company (NBFC) are contributing greatly to the growth of Indian Economy. To ride this growth wave efficiently, it is very important for NBFC’s embrace Smart Technology.

All major NBFC’S have made their way to the top mainly due to the ability to innovate, customize their products based on the needs of their Clients, Agility in workflow and Lowering down operational costs. This ability in them has been born by adopting Cloud-based lending software with features like paperless loan sourcing, giving access anywhere anytime, strong Business Process Management, Lending Analytics built with Artificial Intelligence, Omni-channel sourcing and Smart Collections.

Here are 5 reasons for the future of Smart banking technology:

• India is a very diversified & widespread Market, and reaching people in rural areas is not an easy task. Build a strong reachability by embracing evolving technologies and by moving from legacy systems to Cloud & Artificial intelligence. that can assist NBFCs to access customers effectively. This will help to expand the customer base and Cut down operational costs.

• NBFCs in today's market have to be creative and offer products that suit the rapidly changing requirements of consumers. A CRM system in lending business can help, understand customer needs, Track leads with real-time updates, increase awareness with tailored automated messages & emails and build long-lasting relationship with Customers.

• Lending companies in Today’s world have to be Agile & Secured, to be away from frauds. Tools like Business process management will help you deploy defined rules for lending and workflow processes for the internal team to accept, reject, disburse loans and collections management. From Loan origination to Loan servicing, all run under define rules and workflows by the senior management. This will save NBFC’s from frauds and build a fraud-free customer base.

• Competition is increasing in the NBFC market, as everyone is trying to understand customers and needs. How you can be one step ahead of them? By learning lending data efficiently with the help of AI, ML and Analytics can help you track product performance, Customer performance, customer choices, trends, Behavioral patterns in lending and re-payment. A smart system like this will give you Informed Decisions, new product ideas, and strategies to grow your business network.

• Being in lockstep with technology also enables NBFCs to be compliant with new policies and initiatives. RBI initiatives like Direct Benefit Transfer or Aadhaar Pay require extensive use of smartphones and involve a lot of data. Setting up mobile-friendly platforms and data capturing systems is beneficial not just for the customer but also for NBFCs. AutoCloud Enterprise is the right suite/configurable solution helping 300 lenders do Smart lending. Our solution manages end-to-end loan life-cycle with 4 module ACE Aquire (Loan origination system), Ace Enhance (BPM), ACE Collect(Collections Management), ACE Analytics(Analytics system with AI).

Talk to us and schedule your free NBFC software demo: Click here

Cloud Consulting Services

Are you tired of having to organize your business and manage your IT? Why worry about having to manage old servers or tiring manual papers when IT cloud services have data centers’ with high-end security. Our objective is to develop your strategy as affordable and we have best-written plan for your business to perceive. Best of all you can access your data anytime and anywhere with the single click of a mouse. We broaden your business with cloud solutions and offer a comprehensive cloud computing service that includes high-level strategy consulting. We also study various different elements and take a customer-centric approach to address specific key issues for customers today and helping them expand their point of view and also keeping in mind where they want to go in the future and how are they solving business problems today and how we can take a step by step approach to make a business impact positive direction for them.

One of the key areas is we have been able to address our customer concerns today is what is cloud and what does it mean to me. We hear different answers from different vendors .we bring specific people from technology experts, senior-level cloud consultants, industry consultants beside from It, finance people as well and bring those leaders and minds together driving innovation and adoption through their business together in a room and to help guide customers through various issues they are currently facing today.

We, consultants, strive to define a right mix of technology and cloud together to support your business. This might be tough, but transformations can be best done with strong Cloud professionals. We spend a lot of time working with customers and exactly we know what questions they have on their minds. Our aim is to help you choose the best cloud technologies and map out the strategy that meets customer’s requirements. We have expertise in providing a full suite of cloud services for your business.

Digital Lending Market in India 2019 | Automation And Digitization in Lending

Digital Lending Market in India

Digital lending Market in India are increasing day by day. According to World Bank “By 2020, this number will reach 6.1 billion.

Mobile-based digital technology presents a huge opportunity to enhance financial inclusion for the two billion individuals and 200 million micro, small and medium enterprises (MSMEs) in emerging economies that still lack access to basic savings and credit services”

Micro-Lending opens up huge opportunities for Lending business that can leverage their experience in lending and position their services to these individual and MSMEs that are looking for faster and transparent credit.

Operationally Micro Lending is a mammoth task as Credit decision and Customer assessment is crucial for profitability and healthy Loan Books.

Lenders – MFIs, NBFCs or Online Lending Platform should deploy technology efficient processes and automate the process of customer acquisition, Credit assessment and disbursement to reach out to target client and acquire the right customers.

An end to end Lending solution that can integrate with various data sources like Credit Bureaus – CIBIL or CRIF, KYC databases and other new age data points to profile prospects borrowers and create a credit profile of the client when making informed credit decisions.

Cashless and immediate real-time disbursement with seamless integration with banks can provide the much-needed edge that can deliver on-demand credit when the customers need it.

Motivating borrowers to self onboard by subscribing to the Lenders mobile app will allow financial institutions to capture digital footprints of the borrowers and provide a more inviting and discreet experience of credit.

 Lenders should invest in a robust Mobile application and sound decision-making application that can facilitate this.

Assisted digitalisation and ease of use will help the financially exclude or “credit invisible” population to access mainstream credit with help of mobile technology.

Effective use of Mobile technology and effective digitalisation will expand the reach of business and credit helping the business and the customer.

Taking the digital path will result in better debt collection. Most online credit disbursement is mapped with e-payment channels like Direct debit or Standing instructions, eNACH or wallets that make collection efficient, resulting in greater profitability.

With digital channels, customer engagement is also improved and directed at the right point to make it more rewarding for on-time collections.

Digitalisation and automation are the two most important and relevant ideas that any lender should invest in today to reach more customer, improve credit decisions and build a profitable business.

Article Reference: https://allcloud.in/microlending/