A broker must go through a specific client’s identity verification to ensure that they were not involved in any money laundering activities. It is also significant to carry out the verification for general safety and reliability. During this time, when the broker has to carry out the entire process manually, it can take more time than ever. As a result, all other essential functions have to be kept waiting.
Lending API is an automated process of practising identity verification that researches potential client data and ensures its safety to the broker. In this blog, you can learn about the various types of this automated verification system and gain insight into their many benefits.
What Is Lending API?
Lending API Is the process of automated identity verification that searches for client information and eventually saves them for future use. This typically consists of four steps. It begins with the borrower expressing his requirement for credit as a loan request. So, the lender starts to verify their credibility by going through their information and then looking for ideal loans. Once that is done, the data is then validated via diverse sources. Finally, the data is kept for accounting purposes in the long run.
What Are The Various Types Of Lending APIs?
- Onboarding API
This process is a type of Lending API that involves lending to onboard the borrower. Generally, the traditional onboarding system is time-consuming, inaccurate and even lengthy to carry out. However, it had become a relatively easy experience for all brokers when it shifted to the digital world. Now, brokers can quickly identify information, the amount of loan, expected duration range, time and more. So, this process gets completed within minutes and naturally beats the primitive methods of onboarding API processes.
- Credit Underwriting API
This type of process supplies the lender with relevant and accurate information regarding the loans that the borrower wishes to seek. The data algorithm involved in this process looks for information in various sources and then brings them to the lender’s internal system without any disturbance. The quality and the quantity of the data that the lender contains also matters significantly.
- Loan Fulfillment API
This lending API allows a smooth-sailing process to make things convenient. Once the loan is confirmed, the loan agreement will be generated online. The signing and the delivery of the loan will also occur online safely and without hassles. The loan will be disbursed by debiting the lender’s account and crediting that of the borrower.
- Loan Collection API
These are applied to guide debt collection agencies in getting the present information of borrowers to track them and collect the loan EMI successfully. These can come in handy to aid financial institutions and help them make use of resources appropriately.
What Are The Benefits Of Lending APIs?
- A smooth process that provides a hassle-free experience.
- It helps build compatibility by connecting people with suitable loans.
- Availing credit anytime, anywhere which provides utmost convenience.
- Promoting the retention prices.
- Helps craft innovative products like never before.
Hope this detailed guide helps you with understanding the benefits of Lending APIs as well as the types.