The Loan Management System (LS), also known as the Financial Services Authority’s Electronic Funds Transfer Platform (EFTP), is a dynamic, customizable, multi-line user-automated system that connects lenders and borrowers. The loan management system is an electronic transaction execution service for financial transactions between lenders and borrowers. It is used for the purpose of loan origination, underwriting, loan processing, loan repayment and debt consolidation. The loan management system functions by enabling lenders and borrowers to exchange information in real-time on loan promissory notes, loan documents, loan balance and loan payments. In this process the lender can enter new loan offers, revise loan offers, approve or reject loan offers and close loan applications. This system allows the borrower to complete loan application from any location.
The loan management system ensures that loan payments are received by the borrower and loan management system creditors on time. Through this system, the loan processes are simplified making loan origination, underwriting and loan processing faster and easier. The system is used by companies as well as individuals to make the loan payments on time every month.
LMS is designed to add the features necessary to ensure the smooth running of their businesses. The following features are common among all loan management systems, they include the following: automatic add and remove payments, pay now, pay later and future payment schedules. Automatic add and remove payment is a feature that allows the system to check the availability of loan payments and when to send them. Pay now allows you to set a future date for repaying your loan, when your budget is flexible enough you can set a future due date. If you set a future due date it will be possible for you to pay the loan amount before the due date.
The automatic loan management systems use a computer to determine the payment due dates. The system will notify you every time there is a payment due. If there is still no payment after the due date, the system will inform you to make the payment. The other features that are common in all the systems are the following: Loan inspection management, client contact management and data collection management. These features work hand in hand to streamline the process of lending.
When you are using the loan management system, the computer will keep track of all the data related to the client such as his loan number, loan amount, loan date and more. All these data will be stored in the software and it will calculate the monthly payments based on the given data. It keeps an electronic database of the customer information and this helps to make the loan processing faster. Once the system has calculated the payments, it will notify you through email. This saves you from manually entering in the data again, which helps to improve the speed in which the loan payments are being processed.
The loan management system will also help to automate the entire lender’s end. You can configure it to send out emails to your lenders when certain due dates elapses. You can also configure it to automatically send out reminders to your lenders every time the due dates for repayments come closer. All these features will help you streamline the whole lender end and automate it. It will help to provide a better customer experience to your customers.
Another benefit of using this system is that you will have to spend very less amount of time on manual tasks such as data entry. The automated part of the system will take care of the repetitive data entry works. This will help you save a lot of time and also reduce the human error rate significantly.
These are some of the benefits of using automated loan management software such as LMS. These are just some of the reasons why many small businesses and individuals are using this system to automate their business. If you too want to achieve maximum productivity in your business, then you should also consider buying an automated LMS system so that you can completely automate the entire lender end of your business and reduce the human error rate.