5 Ways Microloan Software Help You to Expand Microfinance Business

After the introduction of Microfinance systems, it has played a vital role to provide financial assistance to the common people, especially poor sections of rural and semi-urban areas. But Microloan Companies also face problems regarding their day-to-day operations. Regular bank-like financial institutions use fully-fledged Banking software by paying hefty prices. But all startup MFIs may not be able to invest that huge money on getting high-profile costly applications to manage their business.

How microloan software can bring growth to the Microfinance Business?

Low-Cost Solutions:

Microloan software comes at a very affordable price. In India, people can spend ₹30,000–40,000 to get a complete MFI Software. Whereas banking software could make them spend ₹150,000–200,000 and maybe more than that. This is a lot of advantages that MFIs can enjoy.

Microloan Application Processing:

Advanced Microfinance software facilitates the client’s microloan application process. With it, the whole procedures of the loan get automated. Automation means more flexibility and accuracy in completing complex mechanisms. It makes the loan approval and disbursal system faster than before.

Automated Collections:

This software grants you the ability to collect loan EMIs from various sources. Apart from directly depositing the money, clients may also use other types of transaction methods like UPI, E-payments, Net banking, RTGS, NEFT, IMPS, and many more. The software has the ability to incorporate all those payment gateways.

Maintaining Transaction Records:

It helps keep track of all the financial dealing records of your MFI organization with the customers and alternative parties. It includes all loan-connected transactions, ranging from details of all the parties taking loans and the amounts disbursed to them. There are also tasks related to the calculation of interests and EMIs, late fees, and penalties, all these tasks are automated now. So, you do not need to worry about them.

Automated Collections

Microfinance Software grants you the ability to collect loan EMIs from various sources. Apart from directly depositing the money, clients may also use other types of transaction methods like UPI, E-payments, Net banking, RTGS, NEFT, IMPS, and many more. The software has the ability to incorporate all those payment gateways.