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End to end solution for Vehicle Loans

  • Outstanding vehicle loans are Rs 5.09 lakh crore as of May 2023. It's a popular product for NBFCs looking to offer secured loan products

  • Popular vehicle loan products are:

  1. New purchase

  2. Used purchase

  3. Loan against vehicle (Refinance)

  • Categories of Vehicle have its own nuances

  1. Car loans

  2. 2 wheeler loans

  3. Commercial vehicle loans

  4. Tractor loans

  5. Construction equipment loans

  6. Electric Vehicle Loan 

  • Since its a fast sell / purchase decision, the key ask for lenders is to give a decision on financing fast - at least roll out a financial offer in 10 mins

  • Synoriq lending suite for Vehicle loan solves this problem in detail by offering following software modules

  1. Mobile app for field sales team/dealers

  2. BRE - Business rules engine

  3. LOS

  4. LMS

  5. Collections

Sanjay Bhansali
MD, Deccan Finance Ltd

We are into 2-wheeler loans, our customer onboarding process is mobile app based and completely digital. Team is agile and quite supportive, though there have been delays but overall it has worked out pretty well.

Vishal Waghmare 
CTO - SPFC Finance

We were using Industry Leading Software, but due to support issues we migrated to Synoriq. They migrated the software in a record time. Their mobility app really makes the process quicker for the buyer. The domain knowledge of the Synoriq team is commendable and they are always eager to support.

Lokesh Jain
Director, Choice Finserv

Go live was really fast for Vehicle Loans. The app is integrated with third party verification providers and provides vahan integration too. Vehicle is a business requiring quick decisioning and Synoriq’s lending suite runs on BRE to achieve the quick turnaround.

FEATURES

Best Platform to fasten lending with easy-to-use and manage Vehicle Loan

Our system eases the hectic process of vehicle loan journey from LOS to LMS

#1 Sales App

  • Quick Decision of the Loan
     

  • EKYC Verification
     

  • Real-time Dashboard
     

  • Watermarking for all Captured and Uploaded Photographs
     

  • Single Sign-on 
     

  • Mobile app Notification
     

  • Initiation of the NACH
     

  • App for the Manager and the Cluster Manager for checking the Performance
     

  • Dedupe Check

#2 Credit Portal

  • Reports for the Higher Management 

  • Real-time Dashboard user wise 

  • Real-time Dashboard stage wise

  • System Generated Form

  1.  Form 60 

  2.  Application Form

  3.  CAM

  4.  Sanction Letter 

  5.  Release Order Letter 

  6.  RC Repor

#3 Admin Panel 

  • Master Upload Functionality through Frontend 

  • User Management 

#4 Integrations 

  • Karza for the KYC Verfication

  • CIBIL ,  CRIF, and Equifax  for the Credit Score
     

  • Gupshup, Message 91 for the message 
     

  • Karza and Signzy for the RC Verification 
     

  • Karza  and Signzy for the Pennydrop
     

  • Digio for the NACH 

Journey of Vehicle Loan (Flow Diagram)

LMS FEATURES

Best Platform to fasten lending with easy-to-use and manage Vehicle Loan in Loan Management System

#1 NPA Management 

  • Asset Classification
  1. Once an NPA, will remain an NPA till the time it is regularized i.e. if 3 installments are pending and then 1 is paid post NPA - it does not change the asset classification

  2. Bucketing requirements - SMA-0, SMA-1, SMA-2, Substandard-I, Substandard-II, Doubtful-I, Doubtful-II, Doubtful-III, Writeoff

  3. DPD posting on daily basis

  4. Asset classification based on ageing and not on DPD only

  • Interest accrual
  1. Post NPA, interest accrual should be posted in the suspended interested account which is a memo account

  2. Post regularization, the exact needs to be auto-moved to the Interest Accrual account

  • Provisioning
  1. Provisioning norms for LAP are different from MFI

  2. SynoFin does the automatic posting of provision entries

  • Linked Loans
  1. Asset classification should be by the customer and not by loan

  2. If one customer turns NPA then all its loans should be marked NPA

#2 Repayment Management 

  • Ability to manage Pre-EMI in case of tranche disbursements
  • Ability to generate repayment schedule as Actual / 365 but calculate EMI as per 30/360 calculations
  • NACH and PDC management
  1. Detailed entry of PDC and SPDC

  2. Handling of presentation process along with accounting for  in-process transactions

  3. Managing of bounces

  • Holding EMI presentation
  • Split repayment from multiple co-applicants - multi-NACH
  • BBPS integrations

#3 Charges Management

  • Accrual accounting for loans but cash based accounting for charges - charges hit the ledger only when they are paid by the customer
     

  • Auto posting of bounce charges on receipt bounce
     

  • Auto computation of charges on foreclosure
     

  • Auto computation and posting of charges
     

  • Granular control on receipt allocation regarding which charge / receivable to knock-off

#4 Collateral management

  • Collateral dedupe
     

  • CERSAI reporting
     

  • LTV
     

  • Top-up loan on the same collateral

#5 Rescheduling

  • Part-payment - change in EMI amount or change in Tenor both supported
     

  • Rich rescheduling capabilities - Installment change, part payment, rate change, tenure change, due date change, moratorium

#6 Tranche disbursement

  • Only interest or principal+interest configurations

#7 Tranche disbursement

  • 3 different modes of advance EMI

#8 Knock Off

  • Auto knock-off through excess money
     

  • Receivable to payable knock-off
     

  • Receivable to receivable knock-off - useful in loan cancellation

#9 Reversals

  • Knockoff

#10 Accounting

  • Separate interest and principal accounting
     

  • IndAS accounting compliant
     

  • GST Invoicing
     

  • IRR computations
     

  • PSL details management
     

  • Handling of accounting asset classification wise

#11 Accounting

  • Separate interest and principal accounting
     

  • IndAS accounting compliant
     

  • GST Invoicing
     

  • IRR computations
     

  • PSL details management
     

  • Handling of accounting asset classification wise

#12 System Generated Documents

  • Statement of Account
     

  • Welcome letter
     

  • Foreclosure letter
     

  • NOC (with blocking/unblocking)
     

  • Rescheduling letter
     

  • Received LOD

#13 Insurance management

  • LAP is often lent with an insurance cover for the loan amount

#14 EOD/EOM Management

  • Daily interest accrual
     

  • Daily LPI accrual
     

  • Daily DPD posting
     

  • Daily asset classification change
     

  • Installment billing
     

  • Monthly provisioning and provisioning reversal
     

  • Knockoff

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