Banks
Retail and SME lending desks that need modern servicing without replacing the core they already run.
Lend · Bankify module
Loan management software that runs the whole loan, not just the ledger entry
Most lending systems handle the happy path well and fall apart at the edges: the customer who wants to settle early, the loan that needs restructuring, the rate that changes mid-term, the write-off that needs two signatures. Bankify treats those as first-class operations with their own audit trail, not spreadsheet workarounds. This page walks through what the module actually does.
Configurable loan products
A product defines how a loan is priced, and pricing in real lending is rarely a single rate. Bankify products carry multiple interest and fee bands, each with its own basis and its own limits, so a product like "2.5% establishment fee or $15, whichever is greater, plus 1.05% insurance, both capitalised" is configuration rather than a code change.
- Multiple interest and fee bands per product, each priced as a percentage or a flat amount
- Fixed, variable and floating rate types, with a base rate plus margin clamped by a rate floor and cap
- Minimum and maximum fee amounts, distinct from the percentage floor and cap
- Per-product currency, principal range and term range
- Monthly repayment cadence — instalments are month-spaced throughout
Four interest methods, including true reducing balance
Interest method is where lending systems quietly diverge from the spreadsheet the credit committee signed off. Bankify implements four, and the reducing-balance path uses a proper annuity formula rather than an approximation — the final instalment is trued up so the principal closes to exactly zero rather than leaving a rounding tail.
- Reducing balance, using a standard PMT annuity so interest falls as principal is repaid
- Flat rate and simple interest, charging on the original principal across the full term
- Compound interest
- Final instalment trued up so the sum of principal repayments closes exactly
- The calculation kernel is test-locked against a live client’s authoritative pricing spreadsheet
Fee treatment: disclosed, deducted or capitalised
How a fee is treated changes both what the customer receives and what the schedule looks like, and getting it wrong is a consumer-protection problem rather than a cosmetic one. Bankify makes the treatment explicit per band, and the quote carries the fee income at disbursement so the disbursement journal balances by construction.
- Disclosed only — the fee is shown but does not change principal or disbursement
- Deducted — netted off the amount disbursed, with the schedule amortising the full amount
- Capitalised — added to principal, with the schedule amortising amount plus fees
- Fee income at disbursement is calculated alongside the schedule, not reconciled afterwards
Approval and disbursement under maker-checker
Approve and disburse are separate actions with separate actors, recorded separately. That separation is what an auditor asks for first, and it is enforced by the platform rather than left to process discipline — a tenant can additionally require KYC completeness before disbursement is permitted at all.
- Distinct created-by, approved-by and disbursed-by actors on every loan
- Maker-checker enforcement is a tenant governance setting, not an honour system
- Optional hard requirement that KYC is complete before disbursement
- Disbursement resolves the destination bank account, including a company account for corporate borrowers
- Every state change lands in the audit trail
Repayment schedules and payment allocation
A repayment is not one number. Bankify allocates each payment across principal, interest and any overpayment, and records the allocation, so a statement can explain where the money went rather than just showing a declining balance.
- Amortised schedule generated at booking, with month-spaced instalments
- Payment allocation recorded per repayment across principal, interest and overpayment
- Schedule recalculation when neither term nor rate has changed
- Loan balance available as a first-class query, not derived at report time
Arrears, penalties and ageing
Arrears handling is where a loan book either stays under control or does not. Bankify tracks days past due at instalment level and carries penalties as their own amounts rather than folding them silently into interest, so a customer can be told exactly what a penalty was and when it was applied.
- Days past due tracked per instalment
- Penalty amount, penalties paid, and the timestamp a penalty was applied, held separately
- Ageing and delinquency analytics without a separate reporting build
- Optional per-tenant instalment reminders, off by default and rate-limited when on
Restructuring, repricing and early settlement
These are the operations that expose a lending system built only for the happy path. Bankify treats each as a distinct, audited action. A restructure keeps instalments the customer has already paid and regenerates only the unpaid portion at the new term or rate — and deliberately does not re-levy fees that were already capitalised into the original principal.
- Restructure at a new term, a new rate, or both, preserving paid instalments
- Capitalised fees are not charged a second time on restructure
- Rate change with the term untouched, recorded in a rate-change history
- Early settlement quote — principal balance plus interest accrued to the settlement date
- Early repayment posts its own ledger journal and is typed as an early settlement, not a normal repayment
Two-step write-off
Writing off a loan moves money out of the receivable and into expense, so it is the single operation most worth making hard to do alone. Bankify splits it into a request and an approval, each attributed, and the resulting journal is idempotent — replaying it cannot double-count the loss.
- Write-off requested and approved as two separate, attributed actions
- Posts a journal debiting bad debt expense and crediting the loan receivable
- Idempotent on the loan’s write-off reference, so a retry cannot post twice
Statements, agreements and portfolio reporting
The loan agreement is generated from the same figures that booked the schedule, which is what makes it safe to show a customer. It discloses the itemised fees, the amount actually financed, the total cost of credit and an effective annual cost rate rather than only the headline rate.
- Loan statements and per-loan reconciliation
- Loan agreement showing itemised fees, financed amount, total interest, total cost of credit and effective annual cost rate
- Point-in-time loan snapshots
- Guarantors, pledged assets with images, checklists and notes held against the loan
- Corporate borrowers, where the company borrows and a verified representative signs
- Portfolio ageing, delinquency and risk analytics available without a separate reporting build
Who it’s for
Microfinance institutions
High-volume, small-ticket books where servicing cost per loan decides whether the portfolio is profitable.
FinTech lenders
Teams that would otherwise assemble origination, servicing and collections from three separate vendors.
Where this fits in the platform
New loans arrive from digital loan onboarding already document-checked, with the KYC evidence attached to the application rather than chased afterwards.
Every disbursement, repayment, fee and write-off posts to core banking software with a double-entry ledger, so the loan book and the general ledger cannot drift apart.
When an instalment slips, the account feeds loan collection software the same day, scored and ranked rather than waiting for a month-end arrears report.
For high-volume, small-ticket lending, see how the same platform is used as microfinance software.
Frequently asked questions
What interest calculation methods does Bankify support?
Four: reducing balance, flat rate, simple interest and compound interest. Reducing balance uses a standard annuity calculation, and the final instalment is trued up so the principal closes to exactly zero.
Can Bankify handle fees that are capitalised into the loan?
Yes. Each fee band is treated as disclosed only, deducted from the disbursement, or capitalised into principal. A capitalised fee increases the principal the schedule amortises, and the fee income at disbursement is calculated alongside the schedule so the accounting balances.
What repayment frequencies are supported?
Instalments are month-spaced. Terms are configured in months, and the loan agreement discloses the monthly cadence explicitly.
Can a loan be restructured after some instalments are paid?
Yes. A restructure keeps the instalments already paid and regenerates only the unpaid portion at the new term or rate. Fees that were capitalised into the original principal are not levied again.
Does Bankify support early settlement?
Yes. You can produce an early settlement quote — the principal balance plus interest accrued to the chosen settlement date — and then take the settlement, which posts its own ledger journal and is recorded as an early settlement rather than a normal repayment.
How are write-offs controlled?
A write-off is two separate actions: a request and an approval, each attributed to a different user. The resulting journal debits bad debt expense and credits the loan receivable, and is idempotent so a retry cannot post the loss twice.
Can we keep using our existing loan management system?
Yes, for two of the four modules. Digital Onboarding and Collection Intelligence are built to run against a third-party system, so you can adopt either without moving your loan book. Loan Management is the module you would adopt if you do want to move it.
The rest of the platform
Want to see this against your own loan book?
Talk to a product specialist about which modules fit your institution today.