9+ best loan management software solutions [2024]

Using the right loan management software can make loan servicing and accounting easier than ever. With automations, integrations, and centralized data collection points, it’s a serious advantage at a time where tech is becoming more necessary to make up for a shortage of accountants.

Whether you're managing a small portfolio or handling complex, large-scale lending operations, investing in the right loan management software can lead to significant time and cost savings, all while improving the borrower experience. The right solution can align with your business needs, putting you one step ahead of your competitors in the loan industry.

What is loan management software? 

Loan management software is a digital tool that streamlines and automates the entire loan lifecycle, from origination to servicing and closing. Financial institutions, credit unions, lenders, and borrowers use it to manage their loan portfolios, centralizing all relevant data and processes in one platform. It helps to eliminate manual tasks, reduce errors, and ensure compliance with regulatory requirements, making the loan management process more efficient and accurate. 

Best loan management software 

With that introduction to loan management software, here are some of the best products currently on the market. 

1. NetLoan by Netgain 

NetLoan by Netgain streamlines every aspect of the loan management process, from origination and servicing to compliance and reporting. Perfect for borrowers and lenders looking to enhance efficiency and reduce errors, it automates payment and interest allocation, flags overdue payments, charges late fees, and creates detailed amortization schedules from a single, easy-to-use platform.

Built natively in NetSuite, it connects flawlessly to your enterprise resource planning (ERP) system and communicates with other apps in your tech stack. NetLoan also stays current with new regulations, keeping you compliant without wasting time and personnel on learning the ins and outs of evolving standards. 

Features:

• Customizable origination automates loan types, payment options, and financing templates for more efficient creation and management.
• Enhanced collections allow you to automate collections with customizable rules, generate priority cases, and engage customers with follow-ups.
• Sophisticated loan servicing automates complex amortization schedules, manages journal entries, and easily modifies loans.
• Integrated billing and reconciliation software lets you identify and rectify errors in real time.
• Automated monthly updates reflect the correct allocation between payment and interest.
• Built-in compliance management keeps you in line with current legal standards so your processes are transparent and auditable.

Pros:

• Fully embedded with NetSuite, it gives you real-time financial updates without complicated third-party integrations.
• Advanced automation and customizations streamline tasks for your specific needs.
• Powerful reporting gives you extensive perspectives on your loan portfolio, including loan maturities, cash flows, waterfalls, and more.

Cons:

• Because it’s built into NetSuite, it is not ideal for users of other ERP solutions.

Pricing: NetLoan offers custom packages so you can achieve your goals at a fair price. 

To see how you can manage your lender needs directly in NetSuite, take a self-guided tour of NetLoan. 

2. LendFusion 

LendFusion is a loan management system designed for established lenders aiming to scale their operations. It streamlines daily tasks and offers an intuitive interface that claims to eliminate the need for IT support, instead allowing users to configure loan applications directly.

The platform supports the full lending process, including origination, decision-making, disbursement, and collections, with customizable features for enhanced functionality.

Features:

• Automated loan origination that simplifies the creation and approval of loans with customizable templates and workflows
• Credit assessment that allows you to make quick decisions without taking risks
• A unified system for all customer, application, and loan data
• Pre-integrated reports to help gauge the health of your loan portfolio
• Customizations allowing you to tailor your loan management software to your organizational goals

Pros:

• Application programming interface (API) integrations connect you to third-party payment platforms and credit bureaus.
• Scalable software hosted on Amazon Web Services is apt for expansion.

Cons:

• Some functionalities require workarounds.
• LendFusion is quite limited in the larger picture of accounting, meaning you need to integrate a lot of other apps to get the most out of it.

Pricing: LendFusion begins at $1,659 per month for up to 100 users, and as your business grows, so will the cost. Onboarding and training are extra, at $80 per hour. 

3. HES FinTech

HES FinTech is a white-label lending solution that lets you add your branding to end-to-end loan management software. Payday loan businesses use it to get started quickly, although the convenience comes at a high cost. 

Customizations are available, such as multi-entity and multi-currency support, as well as policies for late payment fees, auto alerts, and payment reminders.

Features:

• Task management streamlines the loan processes by stopping tasks from falling through the cracks.
• Configurable loans allow businesses to customize loan products for specific client requirements.
• Customizable landing pages allow you to put your own branding on HES FinTech’s system.
• A borrower portal gives clients autonomy over loan requests and monitoring.
• Dashboards and reporting give real-time insights into loan performance and key metrics.

Pros:

• The white-label element means you can launch products quickly.
• HES FinTech’s onboarding team is attentive and available.

Cons:

• It offers a limited range of customization options for white-label loan websites.
• The simplicity of a ready-made platform comes with a high price tag.

Pricing: HES FinTech customizes packages for each client and claims that the cost varies between $20,000 and $70,000 to get started.

4. LoanPro

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LoanPro is a loan management platform that uses APIs to make linking to external apps easier and more cohesive. Although native integration is preferable, this is a firm second choice and more reliable than clunky traditional integrations.

It has a broad feature list including multiple collections channels and self-service tools to log payments and changes. Automatic payments and various payment options add flexibility to what is a narrow-focused accounting tool. 

Features:

• The Modern Lending Core is designed to centralize all loan data and operations via API.
• Customizable origination features tailored workflows from application to approval.
• Automated loan servicing tasks include payment schedules, interest calculations, and account management.
• Collections tools manage delinquent accounts, automate reminders, and prioritize collections efforts.
• Payment compliance features facilitate compliant payment processing, covering various methods and schedules.

Pros:

• The customer service team is responsive when things go wrong.
• API integrations allow you to supplement the tool with third-party apps.

Cons:

• Users frequently report that the user experience is not intuitive.
• Customizations are limited, especially when compared to competitors like NetLoan.

Pricing: LoanPro offers customized pricing based on the specific needs and size of your organization. 

5. Bryt 

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Bryt Software provides customizable loan management software for companies of all sizes. It covers the entire loan lifecycle, including loan origination, servicing, and collections. 

Lenders can approve loans, create pipelines, and set up customized repayment schedules. Both borrowers and lenders get real-time reporting and can track activities and compliance. 

Features:

• Loan tracking automates calculations and generates notices and letters.
• Automated origination covers credit assessment, approval, and funding.
• Contact relationship management records interactions and allows you to store documents.
• Reporting and documentation give insights into historic balances, late payments, and more.
• A centralized platform combines input from multiple channels.

Pros:

• Fast implementation gets you up and running quickly.
• It offers various add-ons to expand functionality.

Cons:

• Users feel features like borrower management and automated clearing house (ACH) processes could be better automated.
• Options such as printing are missing from the core tech, meaning you need to rely on integrations.

Pricing: Pricing depends heavily on the add-ons you choose. Technically, you can get it for as little as $59 a month, but realistically, you’ll be heavily restricted in terms of reporting and customization. The standard professional version starts at $130 a month, but you should expect to pay much more to get a tool that works for you. 

6. SBS Financing Platform 

SBS Financing Platform is the loan management arm of Sopra Banking Software, aimed at large-scale global operations. It simplifies loan operations with automations and ensures compliance with lending regulations. It aims to keep the total cost of ownership down with low setup fees and fixed costs and integrates with existing systems through open APIs.

Features:

• Automated loan origination speeds up the initial stages of loan creation.
• Multiple currencies, countries, and languages support global operations.
• Real-time data insights from various sources help to identify risks early.
• Debt collection software automates the collection process, saving time and effort.
• The customizable platform and APIs allow you to customize the tool to your needs.

Pros:

• Integration with the Sopra Banking Software platform combines all your accounting into one place.
• It’s scalable enough for ambitious teams.

Cons:

• Many users feel the tech is outdated.
• The system is convoluted and excessively complex for any businesses that aren’t at an enterprise level.

Pricing: SBS Financing Platform offers tailored pricing based on the needs of your institution. 

7. Financial Services Cloud 

Salesforce’s Financial Services Cloud is primarily a customer relationship management (CRM) platform that automates and streamlines loan approval and management. Despite the high costs, the loan management software is actually quite limited if you don’t have the full Financial Services Cloud package.

Features:

• CRM centralizes your client data for personalized service.
• Workflows automate routine tasks and processes to save time and resources.
• Streamlined digital processes run your approvals faster.
• Detailed reporting gives you a real-time picture of your loans in the context of your overall financial health.
• In-depth customizations let you tailor the service to specific business needs.

Pros:

• It has endless customizations if you know how to administer the platform.
• As a CRM-first tool, it allows you to nurture customer relationships.

Cons:

• A steep learning curve, even if you’re familiar with Salesforce products.
• Users often feel pressured into buying extra Salesforce services to get the best out of the loan management module.

Pricing: Salesforce offers two pricing tiers depending on the extent of your operations.

• Enterprise: $300 per user per month
• Unlimited: $475 per user per month

8. Mortgage Automator 

Mortgage Automator is a loan management platform designed specifically for mortgage lenders. It offers a range of communication, contact management, and operational features. Built with embedded security, it ensures that all data is protected with encryption and authentication measures.

Features:

• Contact management streamlines communications with borrowers, investors, lenders, and lawyers while customizing your documents.
• Backups and exporting retrieve and access your data anytime for real-time monitoring.
• Support and training include personalized assistance with onboarding.
• Security features protect your data with bank-grade encryption, layered security gateways, and authentication tokens.
• Permissions allow you to control user access with granular permissions, custom access settings, and activity logs.

Pros:

• The team offers consistent support from onboarding and throughout the membership.
• Integrations with broker software accelerate data entry.

Cons:

• Support documentation is quite superficial, which limits how much you can get out of features.

• Some users find forms difficult to customize, which can slow down processes that the tool is supposed to streamline.

Pricing: Mortgage Automator’s pricing isn’t readily accessible, but it offers add-ons to its standard origination and servicing:

• PRO Origination
• PRO Servicing
• Fund

9. Turnkey Lender 

TurnKey Lender offers a range of lending options, including commercial, consumer, healthcare financing, and non-profit loans. It is a cloud-based solution that integrates AI-powered decision-making, loan origination, servicing, and collections.

Features:

• AI-powered risk management and credit scoring to help reduce losses
• End-to-end loan management with origination, servicing, and closing
• Integrations with banking systems and other data sources that aid loan management
• Automated credit history analysis and instant scoring reports to speed up underwriting
• Decision management systems for lenders to structure their workflows

Pros:

• Automations throughout the process save a lot of time and repetitive tasks.
• Automated emails remind customers about their duties without manual outreach.

Cons:

• It is difficult to customize the core platform without contacting TurnKey support, which makes for a slow user experience.
• Users feel that automation and organization add-ons push the price up significantly.

Pricing: TurnKey’s pricing system depends on the number of loans issued, but the platform doesn’t reveal the rate per loan.

Benefits of loan management software

Accounting teams take pride in making smart, profit-driven decisions, so an investment in loan management software has to be worthwhile for the company. Let's look at how adopting a software solution can benefit businesses. 

• Software automates tasks and processes from loan origination to servicing, so each step in the loan lifecycle is handled with minimal human intervention. 
• It minimizes errors associated with manual data entry by streamlining workflows and giving accounting teams more time to focus on strategic tasks. 
• It improves employee satisfaction by eliminating mundane and repetitive tasks.
• It reduces the time and costs of managing loans by automatically centralizing your data and producing detailed reports instantly. 
• It ensures compliance with ever-changing regulations with built-in compliance checks and reporting features.
• It enhances client communication with automated payment reminders, updates on loan status, and responses to client inquiries.

More about loan management software 

Now that we’ve covered the features and benefits of some of the best loan management software out there, here are some FAQs.

What are loan management systems? 

Loan management systems are digital platforms that manage the entire loan lifecycle, from application and approval to servicing and repayment. They automate tasks, reduce the need for manual intervention, and check off all necessary steps accurately and efficiently. 

What software is used for loan processing?

Several types of software are commonly used for loan processing, each designed to handle specific aspects of the loan lifecycle. For example, loan origination software focuses on the initial stages of loan processing, including application intake and approval. 

Loan servicing software, on the other hand, manages the ongoing maintenance of loans, such as payment collection and customer communication. The best solutions combine both origination and servicing functions into a single platform, providing end-to-end management of loans.

What is loan tracking software?

Loan tracking software monitors the status of loans throughout their lifecycle. It looks at key metrics such as payment schedules, interest accrual, and borrower activity to provide data on portfolio performance, late payments or defaults, and any proactive measures to address issues. Loan tracking helps to maintain the health of a loan portfolio and ensures that all loans are managed according to their terms.

Choose the best loan management software 

The best loan management software depends on each organization’s specific needs. 

However, NetLoan by Netgain offers an ideal solution for most industries, providing end-to-end loan management capabilities with excellent compliance and reporting, all embedded inside NetSuite.

If you’re looking to start issuing loans, or you want to upscale your current operations with transformative loan management software, book your personalized demo with NetLoan today.

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