Overview

Svamaan Financial Services Pvt. Ltd. (Svamaan) is a microfinance institution of the JSW group. It is the first microfinance firm to utilize a Data-Based Approach (DBA) in order to meet the twin goals of financial inclusion and driving impact for our customers. The new age MFI is finding new ways to serve Micro-entrepreneurs of India, empowering communities through financial inclusion and follows a customer-centric digital approach.

Svamaan planned to launch lending operations for product portfolio like joint liability group (JLG) loans, microloans to small and medium industries. For administering the loan verticals, Svamaan wanted to automate the lending operations. Based on Nelito’s rich experience of successfully implementing FinCraftTM Integrated Lending Management Solution (ILMS) in leading Financial Institutions and its capabilities to add significant value to the project, Svamaan shortlisted Nelito for the implementation of the solution and integrate it with third-party vendors and to provide a user-friendly mobile and web-based loan application for Svamaan’s customers.

Implementation Process

The implementation process of Svamaan Financial Services Pvt. Ltd.’s transformation journey in partnership with Nelito Systems Ltd. was a comprehensive and collaborative endeavor. Kicking off with a thorough requirement analysis, Svamaan’s specific needs, such as capturing non-converted customer data, group and center creation, credit rule setup, and advanced holiday collections, were meticulously documented. Nelito’s expertise in the financial sector and its FinCraft Integrated Lending Management Solution (ILMS) formed the bedrock of this transformation.

In the subsequent phases, Nelito seamlessly customized the ILMS to Svamaan’s requisites, ensuring alignment with their business processes. This included integrating with third-party vendors and developing a user-friendly mobile and web-based loan application for Svamaan’s customers. A key highlight was the establishment of a robust credit rules engine, enabling geo-based and activity-specific rule setups. Moreover, the ILMS effectively managed workflows, from lead initiation to loan disbursal, and facilitated efficient collections, tracking delinquent consumers, and minimizing defaults. Through a collaborative effort, this implementation streamlined Svamaan’s operations, reduced disbursement timelines, and positioned them as a technology-driven catalyst for financial inclusion.

Benefits Achieved
Some of the benefits include:

• The turnaround time of the final disbursement process was reduced to an average of 5 days from 21 days.
• Increased productivity and efficiency because of streamlining the lending process with the help of ILMS.
• With omni channel solution. Activities like lead initiation, categorization, lead qualification with credit bureau integration, lead bucketing, etc. are performed seamlessly
• Collection module helps to track & manage delinquent consumers and minimize delinquencies using tighter supervision.
• The on boarding of one client or group clients, the solution covers entire workflow i.e. loan application to disbursement.

Conclusion

In conclusion, Svamaan Financial Services partnered with Nelito Systems Ltd. to implement the FinCraft Integrated Lending Management Solution. By leveraging this advanced solution, Svamaan successfully streamlined and automated its lending operations, leading to remarkable benefits such as reduced disbursement turnaround time, increased productivity, and enhanced efficiency throughout the lending process.

Key Facts

Bank Name: Svamaan Financial Services
Bank Founded In: 2017
Bank HQ: Mumbai, India
Vendor Name: Nelito Systems
Solution Implemented: Fincraft Core MFI Solution