Empowering Futures: Building a Cutting-Edge Framework for Education Loans in Lending!

Customer profile

A lending company that acted as an interface between educational institutions and students to finance the course fees.

Requirement 

To build a tool that managed the process of loan application, creditworthiness checks, disbursement data, and collections data.

Solution Details

This was a unique requirement from the lender to develop a tool to act as an interface between

• Educational institutions,

• Lending companies, and

• Students and their Parents.

A tool was built by our team that generates a dynamic page that once uploaded to the institution's website would enable students and their parents to apply for a loan against their education directly from the institution's portal.

Once an application is submitted, will do the following actions automatically

• Pull the applicant's credit score from CIBIL and Experion

• Conduct applicant KYC

• Analyze bank statements

• Check for duplicate applications

• Check for a percentage match of the applicant's name as provided against that in the applicant's provided PAN card, and Aadhaar Card,

• Collect and store documents

• Generate a Risk Report along with a Customer Summary Report or the CAM (Customer Acquisition and Management) report.

The subsequent interface dispatched the loan application with the CAM report to the lending company to conduct internal checks and approve/reject a loan. The portal was also designed to display the real-time status of loan applications, disbursement, the payment of EMIs, applicable interest rates, and loan balance details.

A unique feature was included to facilitate EMI payment on this portal if, for any reason, there was a default in direct debiting/NACH standing instruction was unsuccessful. The tool incorporated flexibility to cater to an interest-based/subvention-based loan model, the number of EMIs, and re-payment duration based on the needs of each transaction.

It didn't end there, the portal also was designed to generate customized loan agreements that could be signed digitally on an e-Stamp paper

The tool was pivotal in streamlining the data flow to both the lender and educational institution while providing necessary updates to the students. It eliminated redundancies of assimilating the data by various parties involved and created an efficient way of disbursement and collections. While it evidently reduced the hassle to the customer, it also managed to make the dream of education a bit more feasible for aspiring students.