Collateral & Limit Management
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Collateral & Limit Management
Collateral & Limit management entails defining and overseeing the maximum exposure a bank is willing to have with a particular borrower, industry, or sector. This practice helps control risks and maintain a diversified portfolio. In other words, limit management is at the very centre of lending financial risk management for banks, NBFCs and digital lending companies.
It is comprehensive and customizable solution for different loan asset classes. Two tier loan limit management offers cutting edge wholesale loan rating models and retail scorecards. End-to-end limit management is enabled with borrower rating, facility rating, application score and behaviour scorecard with bank set risk parameters.
CRSPL offers a user-friendly browser-based credit scoring system solution. Industry specific models for managing limit is based on building block of expert judgement, statistical models and hybrid models. Bank specific and referenceable benchmark data is seamlessly configurable delivering improved visibility. User definable workflow controls are supported by notifications on screens, emails and SMSs.
Collateral & Limit management solution assist in credit rating risk mitigation by optimally leveraging analytics. Spread sheet upload compatibility aid in financial data analysis and ratio analysis. Changes in operating environment is reflected with review and override features. Customizable reports support end-users in enhanced credit decision.
KEY FEATURES
Credit Limits
Banks set credit limits based on a borrower’s creditworthiness, financial standing, and risk appetite. These limits define the maximum amount a borrower can borrow.
Sectoral Exposure
Managing sectoral exposure limits prevents over-concentration in a single industry, reducing vulnerability to industry-specific risks.
Aggregate Limits
Banks also manage aggregate limits to ensure that the combined credit exposure to all borrowers remains within acceptable levels.
Real-time Monitoring
Automation and technology allow banks to monitor limits in real time, triggering alerts when limits are close to being breached.
Platform capabilities
Browner based credit scoring system gives omni channel experience with flexibility to create templates, audit control, ready integration points and support for Apps and solutions. Cloud and physical deployment capabilities provides added flexibility.
Benefits
Our LOS system offers banks and financial institutions a range of business benefits which are listed below :
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