Reconciliation

What is the reconciliation process?#

The reconciliation process helps lenders check multiple sets of financial records to tally figures to check if they are correct. Through loan reconciliation, credit product data like the total files, those received and those not received is tracked so that lenders can keep a record of the status of all their loans.

What is the importance of the reconciliation process?#

The loan reconciliation process is crucial as it helps lenders streamline their loan books. Since banks and NBFCs disburse loans in large amounts, it can be challenging to keep track of each credit product. Reconciliation processes help lenders get accurate information about credit ownership.

How do financial institutions do reconciliation?#

Here’s how financial institutions conduct loan reconciliation--

  • Gather data from a variety of sources
  • Categorize different loans based on their type
  • Compute the number of loans in each category
  • Recognize the status of all these loans
  • Analyze the status of each loan
  • Summarize the reconciliation findings in a report

Loan reconciliation can be automated to streamline the entire process. This helps store and source the data all in one place, eliminating the segregation into various categories.

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