#1 NPA Provisioning  

1. DPD (Days Past Due) as per IRAC Norms: Our LMS automates the computation of DPD (Days Past Due) based on the due date of the oldest installment. The DPD calculation is done horizontally, ensuring accurate monitoring of delinquencies.

2. Auto Classification on EOD (Ease of Doing) to IRAC Categories: The system supports the automatic classification of accounts into different IRAC (Income Recognition and Asset Classification) categories, such as SMA-0, SMA-1, SMA-2, sub-standard, doubtful-1, doubtful-2, doubtful-3, and Loss. This feature enables institutions to effectively manage asset quality and provisioning requirements in line with regulatory norms.

3. Auto Movement of Accrued Interest to Suspended Interest: Our LMS automates the movement of accrued interest to suspended interest accounts, ensuring accurate accounting and recognition of interest income in case of defaulted accounts.

4. Accounting Write-Off and Write Back of Accounts: The system facilitates the handling of write-off accounts, allowing users to manage both manual and automatic write-offs. Additionally, Our LMS supports the write-back of accounts, ensuring that appropriate adjustments are made when accounts are recovered.

5. Interest Accrual in Memo Ledger: Our LMS offers support for shadow accounting by accruing interest for written-off accounts in a memo ledger. This ensures that accruals are posted to a separate memo account and not to the customer account for better tracking and reporting.

6. Ability to Define NPA (Non-Performing Asset) Criteria: Institutions can define NPA criteria, including the specific number of days past due (e.g., as per RBI guidelines) for an account to be classified as NPA. Our LMS enables the flexibility to set customized NPA thresholds based on regulatory requirements.

7. Auto Percolation of NPA Status to Linked Accounts: In the case of an NPA account, the system automatically percolates the NPA status to all linked accounts of the customer. This feature ensures consistent classification across related accounts.

8. NPA Upgradation Only After All Accounts Are Standard: Our LMS supports the upgradation of an NPA account to standard status only when all accounts of a customer (at CIF level) are classified as standard (0 DPD). This measure ensures prudent risk management practices.

#2 Loan Linking 
Our LMS allows financial institutions to link multiple loans to a single customer, providing a comprehensive view of the customer's borrowing history. This feature helps institutions assess the overall creditworthiness of the customer and make well-informed lending decisions. Loan linking ensures better risk assessment and compliance with lending guidelines, enhancing the accuracy and effectiveness of loan management.