What Is Loan Servicing Software?
Loan Servicing Software is a technology tool that helps private lenders in automating the entire loan lifecycle from origin to credit decisions, payment processing, collections, and from accounting to reporting. These tools provide support for consumer, business, home equity and mortgage loans.
Moreover, Loan Servicing Software provides a customer portal to help lenders in the management of customer requests, queries, and information. These tools may also assist in the creation of financial products and management by configuring parameters and the pricing of the product and responsiveness to the characteristics of the lender.
Why Use Loan Servicing Software?
Traditionally, lenders preferred to handle all the affairs of lending on their own using their in-house processes and tools. This made the entire practice time-consuming and complicated.
According to Technavio’s recent report, during 2017 and 2021, the global market of loan servicing software is expected to rise more than 14%. Today, lenders are increasingly switching to loan servicing software due to their need for agility and strict compliance requirements. The use of loan servicing software by private lenders makes the complete process much more efficient, accurate, and compliant.
Grow Your Revenue
With the use of loan servicing software, you can automate the payment collection and tracking process, which has a direct impact on your revenue. These tools send notifications of due-dates and outstanding payments to the loan servicers. They also facilitate online payments, follow-ups, and offline payment collection. This efficiency helps in removing delinquency in the process, which results in increased revenue.
Reduce Your Turnaround Time
By automating loan servicing tasks, these tools significantly reduce the turnaround time of the process. Some standard functions they perform include generating and sending notifications to defaulters, posting about late payments, and calculating fees, and penalties.
Ensure Process Accuracy
For private lenders, the accuracy of repayment, principal amount, and interest rates holds paramount importance. The use of loan servicing software automates the complex calculations of these amounts and ensures process accuracy.
Some Common Features of Loan Servicing Software
All the available loan servicing software tools in the market share some standard features, which facilitate the loan servicing process. These features are as follows:
- Management of collections
- Management of borrowers
- Collateral tracking
At Private Lender Link, we provide you with the list of most demanded and useful loan servicing software. You can explore the features of these tools and choose the one that best suits your needs.