11 Free and Open Source Loan Management System

Managing loans is vital for organizations such as businesses, mortgage firms, banking institutes, commercial lending firms, and many more. After all, customers want to feel secure when they undertake a loan for personal or professional reasons. The article will discuss the vital privileges that open source loan management software free brings you.

Companies need to ensure they do everything correctly while disbursing loans. This is the prime reason that organizations across the globe are investing in loan management software free solutions. As a result, the international loan servicing software market is expected to grow by USD 446.54 million from 2019-2023.

What is an Open Source Loan Management System?

An open source loan management system is a digital financial services platform that automates the stages of the loan lifecycle. The open source loan servicing software takes care of the processes related to loan origination, application, debt collection, closing, and several others.

Along with automating the procedures, open source loan management system provides insights and analytics for borrowers and lenders.

What are the Features of a Free Loan Servicing Software?

1. Centralized Access

Lenders can keep all customer-related data throughout the customer lifecycle in a single location using loan management software solutions. As a result, they eliminate the bottleneck caused by the need to store and retrieve borrower data from various systems.

Additionally, it enables the lending company to access the customer’s profile, the stage of loan they are in, their credit score, and other relevant information at a glance from any part of the world.

2. Scalability

Any firm that wants to expand and scale needs the right tools.

The ideal free online loan management system free must allow lenders to expand their operations, provide excellent customer service, and broaden their range of products. This enables lenders to boost their profit margins and expand into new areas, provide better solutions, and launch new products more swiftly to meet the changing demands of developing markets.

A scalable system assists in meeting the changed expectations of a business once it has hit the growth curve. The scalability of a product also enables enterprises to start according to their needs.

3. Unified Solutions

The lending business has many aspects, including onboarding, credit evaluation, loan origination, underwriting, disbursal, and repayment. Integrating all these modules into one streamlined software speeds up turnaround times and helps companies be more effective. With a unified solution, companies can save time, process loan requests quickly, and provide clients with an overall positive experience.

An ideal loan management software enables you to merge customizable elements into a seamless, integrated solution. In addition, businesses benefit from the open source loan management system’s support for integration with CRM, ERP, and accounting software.

4. Easy Deployment

Start-ups and peer-to-peer lenders in the industry may need access to dedicated IT support. Access to an IT team around the clock is necessary to implement, maintain, and debug problems from such a data-critical advanced technical solution. Most cloud-based loan management service providers offer speedy setup and maintenance services like bug fixes, frequent upgrades, and IT help when essential.

5. Assessment of Credits

The lenders choose interest rates and loan payback terms that minimize risk and maximize revenues. It increases with the quality and accuracy of the credit assessment. It is achievable if the lenders have a detailed understanding of the borrowers’ creditworthiness. 

As the majority of start-ups and peer-to-peer lenders are interested in exploring developing markets where potential clients lack credit histories, they need access to software that offers alternative credit rating techniques and databases, such as social media behavior, utility bill payment behavior, tax data, or bank statement analysis to reduce risk and make well-informed decisions about things like interest rates and repayment terms.

What are the Benefits of the Best Free Loan Management Software?

The benefits of using the best free loan management software are countless. Let’s take a look at some of the most crucial benefits.

1. Saves Time

With free loan servicing software, various manual tasks are automated. For example, automating tasks like posting unpaid, partial, or late payments, tracking and producing notices to customers in default, charging fees, and recalculating payment schedules that have been modified will save your team’s time. 

Loan management software free is a support tool that simplifies many elements of daily work and helps team members to concentrate and put effort into crucial tasks to maintain productivity. 

Compared to someone using a traditional manual procedure, someone using loan management automation software can process even a thousand times as many files. Automation enables establishing a crucial organizational process in the treasury or accounting department when the volume of data is large and sensitive. Quality loan servicing software mainly helps manage one’s time, data, and accuracy of outcomes, allowing great speed and super flexibility.

2. Reduce Calculation Errors

The substantial decrease in computing errors is the first undeniable advantage. The program manages errors that may prove costly for the company. No matter how skilled your group is, several issues may occur due to human error. A smart loan management system free makes the most of automation and tools and lowers the likelihood of mistakes.

3. Optimize Revenue

Revenue naturally rises when you can precisely track outstanding loans, spot hazards, and act swiftly in exceptional circumstances. It helps your staff operate more productively.

The management software’s monitoring enables you to receive payments more quickly, boosting revenue. You can simplify your follow-ups and collect money at the same time!

You can see your short-, medium-, and long-term revenue projections with a free online loan management system. The system helps you forecast your cash flow and plan the tactics and activities to maximize your revenue.

What is the Purpose of the Best Free Loan Management System?

The purpose of the best free loan management system can be narrowed down to the following points:

1. Manage the lending company’s credit allocation
2. Access loan servicing data, such as payment history, escrow and tax information and history, investor reports, and borrower payments, and keep track of loans based on various categories
3. Offer multiple levels of interest methods.
4. Manages delinquency and loss mitigation in support of credit bureau reporting, bankruptcy, foreclosure, REO, and charge-off.
5. Keep track of payment due dates with month-end summary, cut-off, investor, and year-end reports.
6. Create and apply late fees manually or automatically to accounts
7. Support borrower self-service 

Do You Need To Invest In Loan Servicing Software?

Are you questioning the need to spend money and time getting online loan management software? Well, it is high time to take the plunge and move to automated solutions for managing your loan processing. 

Here are some compelling reasons to invest in the best loan servicing software for your business firm:

• Reduces Errors: A professional loan management solution reduces computational errors due to the human element and increases accuracy in all loan-related operations.
• Better Compliance: Since regulatory compliance is essential, companies often opt for advanced loan management solutions. These tools ensure all documentation remains in order and follow mandatory regulations.
• Improved Data Security: Loan servicing software ensures stringent security measures that do not compromise the safety of client data. Password protection, end-to-end encryption, firewalls, and authorized user control are a few measures that prevent hacking or any data theft. 
• Excellent Customer Experience: Companies need an automated open source loan management system to boost processing speed and make faster decisions.
• Minimize Risks and Bad Debts: Loan servicing software can help managers identify delinquent accounts to take proactive action. This reduces the risk and regulates the flow of cash.

Comparison of the Best Free Open Source Loan Management Software

Name of the Loan Management Software	Free Trial	Pricing	Deployment
LenderSuite	Available	Connect with the vendor	Cloud, on-premises, and hosted
OpenCBS	Available	$5000/year	Desktop-windows
Apache Fineract	Available	Connect with the vendor	Cloud, on-premises
HES Online Lending Software	Not Available	$50000	Cloud, SaaS, web-based
Zoho Loaner	Available	Starts at $600/month	Web-based
CloudBankIN	Available	Connect with the vendor	Cloud, on-premises, and hosted
TheLoanOffice	Not Available	$289/month	Hybrid
TurnkeyLender	Available	Connect with the vendor	Cloud
AutoPalSoftware	Not Available	Starts with $99	Cloud
Fincraft	Not Available	Starts at $1/month	Hybrid
Finabile	Available	Starts at $200/month	Cloud, SaaS, web-based

Best Free and Open Source Loan Management Software:

1. LenderSuite

LenderSuite is a novel loan management software that satisfies the needs of small-medium businesses and helps them manage the entire loan cycle – right from the beginning to the end. This software can help businesses increase profitability parameters by structuring their loan portfolios and gain access to real-time financial data.

 

Key Features

• Compatible with Windows 7 and Windows 8 and includes the following databases — MSSQL, Access, Pervasive, MSSQLExpress
• Can manage 17 different types of different loans and enhances workflow through automation of repetitive tasks 
• Can store vast amounts of images, text documents, and PDF files for individual loans
• Offers audit trial, audit planning, and credit approval

Pros

• Manages the entire loan cycle, right from origination to closure.
• Functional features navigable user interface make it easy to operate
• Caters to all business requirements of borrowers, investors, loan affiliates, and back-office personnel
• Offers online support and a free trial

Cons

• Tech support needs to be enhanced for first-time users
• Ideal for small businesses only

Pricing

Connect with the vendor for pricing.

USP: It can handle all kinds of portfolios and can be customized for better efficiency.

2. OpenCBS

OpenCBS is a holistic loan management software solution that manages diverse business operations — from loan applications to processing documents and final approval from clients. It has a navigable interface with a low learning curve, making it an ideal choice for all kinds of organizations. It has a comprehensive host of features that reduce the workload and save time.  

Key Features

• Manages loan applications from multiple channels such as websites and via client officers
• Provides statistics on loan approvals and performance indicators
• Users can easily add attachments such as client images, IDs, and excel documents

Pros

• Intuitive system that makes it easily navigable
• Customizable down to the field level
• Ability to extract data and integrate with other systems
• Streamlines document tracking accounting, and other processes.

Cons

• There may be bugs in upgraded versions that disrupt operations
• Operational costs are expensive
• The features are complex

Pricing

• $5000/year
• Free trial available

USP: One core benefit of using OpenCBS is that it has an intuitive task management interface. Managers can monitor all the loans that are pending for approval and have a clear view of the loans in the pipeline.

3. Apache Fineract

Apache Fineract is an all-in-one open-source loan management system that caters to the needs of startups, small banking firms, credit providers, and financial services. It is power-packed with features such as client data management, portfolio management, financial reporting, and real-time accounting analytics. It can help digitize all significant operations and increase engagement to the possible level.

Key Features

• Can be deployed both on-premise and as a cloud-based solution
• Can support front-end interfaces online as well as offline on mobile and desktops
• Has functional modules such as audit management and credit approval 
• Offers flexible product configurations and KYC documentation support

Pros

• Reliable, flexible, and scalable solution for all kinds of businesses
• Open APIs and microservices architecture for better efficiency
• Secure client data management
• Complete banking solution with various product options

Cons

• Few bugs with an implementation that may disrupt workflow management
• Cloud-native is still in beta
• Bugs in legacy one

 Pricing

• Connect with the vendor for pricing
• Free trial available

USP: One unique feature is that you can combine Apache Fineract microservices to create new software platforms for digital financial service providers. 

4. HES Online Lending Software

HES Online Lending Service is a new-age loan management software that can drive efficiency in all business operations. This fully-featured loan management solution manages every loan-related process, from initial contact with the customer to the closure of the account, in a streamlined manner. It has an interactive dashboard that enhances visibility and encourages team collaboration among the workforce.

Key Features

• Ensures that companies meet all mandatory regulatory compliance – domestic and global
• The system can be deployed both on the cloud or on-premise 
• Has integrations with many business applications and is highly scalable

Pros

• Follows the best practices of the lending industry and is helpful for offline loan origination
• Has advanced reporting and analytical features
• Highly compliant and scalable
• Automates loan lifecycle management

Cons

• Users may experience technical glitches at times that hamper productivity
• Not a low-cost product
• Does not offer a free trial

Pricing

• Pricing starts at $50000. It has a one-time payment option.

USP: HES Online Lending software leverages business intelligence and AI-driven technologies, thus bringing about speed and agility in the daily task flow management.

5. Zoho Loaner

Zoho Loaner is an open source loan management system that simplifies the entire loan cycle process for financial organizations. It integrates with many other products from the Zoho suite such as CRM platforms, SalesIQ, and it manages all your business requirements. It is a user-friendly and popular tool that enhances productivity and saves time.

Key Features

• It is easy to view, borrow, and lending products on the go
• Allows users to design your ideal dashboards through their drag-and-drop builder
• Easily schedules alert notifications to borrowers when their due date approaches

Pros

• Great value-for-money product
• Highly flexible, customizable, and scalable
• Focuses on data security through various integrated safety features
• Set up instant approval process

Cons

• Due to internal complexity, users may require initial tech support or training

Upgrade for

• Basic: ₹600 per user per month
• Premium: ₹1200 per user per month
• Enterprise: Custom quote
• Free trial available

USP: Zoho Loaner is a robust loan management software that never experiences any downtime and is highly responsive.

6. CloudBankIN

CloudBankIN is an automated platform that is a smart tool for all loan management processes. It has several customizable modules that aid in better decision-making and seamless operations. CloudBankIN caters to all aspects of the loan lifecycle and makes it easier for employees by sharing real-time data.

Key Features

• Manages individual loans, group loans, or joint liability group loans
• Allows users to set maximum outstanding amount for different loan products
• Streamlines the entire on-boarding procedure with the eKYC process

Pros

• Offers several vital features like mortgages, audit trail management, and loan servicing
• Simple user-interface with easy navigability
• Highly scalable, customizable and agile solution for all business sizes 
• Reduces human effort for transactions

Cons

• Users may experience difficulty to reach support staff members on the phone at times
• Lack of functionalities
• Limited customization

Pricing

• Connect with the vendor for pricing
• Free trial available

USP: CloudBankIN is built exclusively for the micro-finance and NBFC industry. It ensures that loan processing operations are streamlined and enhances team communication.

7. The LoanOffice

The Loan Office is an automated platform for loan management with the option of a free trial. It has enhanced functional capability to handle all stages of the loan management cycle. TheLoanOffice automates and streamlines all major business processes to ensure higher productivity, client engagement, and better teamwork.

Key Features

• Has an intuitive interface where most functions can be performed in one or two clicks
• Provides highly effective and quality personalized support from industry experts
• Can be hosted on both cloud storage and on-premise server

Pros

• Easy to use platform with innovative features
• Provides fantastic tech support to first-time users
• Advanced reporting and analytical capabilities that sort and arrange real-time data
• Great user interface

Cons

• The reminders section is not visible to users 
• Challenging to customize features
• Contains errors at times

Pricing

Pricing starts at $289/month

USP: What sets this software apart is its high-level security. The system has many integrated features that make sure that data remains safe from hacking or theft.

8. TurnkeyLender

TurnKey Lender is an all-inclusive free and open source loan management software that automates all major tasks and simplifies workflows. It helps organizations manage various domains such as the loan cycle, SME financing, money lending, leasing, and in-house finance. It is a reliable system that is affordable, scalable, and flexible.

Key Features

• Automates repetitive tasks to ensure fast processing of loans
• Powered by machine learning algorithms for better accuracy and security
• Has a minimalistic interface with an interactive user-friendly dashboard

Pros

• Great security features and customization options
• A customer-oriented support team that remain available round the clock
• Flexible product that allows users to launch new credit products quickly 
• Ease of transaction

Cons

• The reporting functionality is not well-developed
• Limit to automate documentation
• Cannot filter applicants by clients

Pricing 

• Free plan and free trial available
• Contact the vendor for detailed pricing details

USP: This open source loan management software is popular due to its robust automation Key Features that save time, money, and effort.

9. AutoPal Software

AutoPal Software is a reliable and data-driven automated open source loan management software. It is designed for businesses of all sizes and has various features. With AutoPal, companies can easily build functional websites for customers to apply for loans and make payments.

Key Features

• Offers end-to-end solutions for an amortization schedule, loan servicing, and collections management
• Ensures that organizations adhere to mandatory domestic and international regulations
• Can be hosted on both cloud storage and on-premise server

Pros

• Provides excellent technical support to the user community
• Delivers all essential information related to loan management in a few clicks
• User-friendly solution with a short learning curve 
• Multiple set of features

Cons

• Users may experience trouble logging in at times, due to downtime issues
• Not a seamless onboarding process

Pricing

USP: What sets this software apart is that it is extremely easy to use, and companies can also download training videos to help their workforce understand the modules better.

10. Fincraft

Fincraft by Nelito Systems is fully-featured loan management and banking solution for start-ups and small enterprises. It helps organizations handle various activities, such as risk management, loan servicing, and corporate banking. Fincraft automates all routine tasks, streamlines business communications, and helps in team collaboration.

Key Features

• Has an intuitive dashboard that displays real-time information and critical performance parameters
• Strong reporting abilities for better decision-making
• Provides personalized user support from specialists and domain experts

Pros

• Innovative features that handle the loan management cycle from origination to closure
• Provides responsive support to users
• Has stringent data security measures to protect sensitive information
• Offers documentation and in-person training

Cons

• users may experience technical snags or glitches at times
• No free trial available

Pricing

USP: Finecraft is popular due to its automation Key Features as they reduce workload and bring about efficiency in daily operations.

11. Finabile ( Habile Technologies)

Finabile is a robust, fully-featured loan management system. It is modular and is designed to manage diverse operations for all kinds of financial companies. Finabile can handle various time-consuming tasks such as collections management, loan origination, and accounting management, thereby driving productivity in daily operations.

Key Features

• Can be deployed both as a cloud storage solution and on-premise server
• Has advanced reporting capabilities for in-depth analysis
• Users can design a personalized dashboard with a drag-and-drop interface

Pros

• Has an excellent technical support team that remains available for troubleshooting
• Interactive dashboard that displays key performance indicators
• The navigable interface that is easy to operate

Cons

• There may be bugs that lead to problems in loading, thus causing the delay

Pricing

• Starts from $200/month
• Free trial available

USP: What sets this software apart is its versatile Key Features that can be customized to suit specific business requirements.

Final Thoughts

There is no doubt that loan servicing is critical for all organizations. Investing in the best loan management software is essential to help your company gain a competitive advantage. It will raise all vital bottom-line results and streamline all business operations effectively.

So, get the best loan management solution to witness a positive transformation and achieve instant business success!

Frequently Asked Questions

Priya is a content writer who writes for passion and profession. She loves weaving thoughts into words. Her English literature and digital marketing background help her write engaging, creative and technical content. She bagged a gold medal by securing the first position during her Master’s in English Literature. She has written for three anthologies. Apart from writing, she is a keen reader and a k-drama lover.