Co-Lending & Loan Transfers

features

Lending isn’t always a solo effort. Many financial institutions collaborate with co-lenders to expand their reach and share risk, while others need to transfer loans between branches for operational reasons. Managing these processes manually can lead to errors, mismatched records, and unnecessary delays. Frappe Lending simplifies co-lending and loan transfers, ensuring every transaction is properly recorded and accounted for without the hassle.

Onboard co-lenders

Configure interest splits

Automate co-lender accounting

Transfer loans between branches

Onboard co-lenders

Working with co-lenders allows you to offer more loans and serve a wider market, but keeping track of each lender’s share can quickly become complicated. Frappe Lending makes onboarding co-lenders simple—just enter the lender’s details, define their contribution percentage, and let the system handle the rest. Every co-lender is linked to the relevant loans, ensuring transparency from the start.

Configure interest splits

When multiple lenders are involved in a single loan, tracking who gets what portion of the interest can be a headache. Frappe Lending automatically calculates interest distribution based on predefined splits, ensuring that each co-lender receives their fair share. No more manual calculations or disputes—just accurate, automated revenue allocation.

Automate co-lender accounting

With multiple lenders financing a loan, repayment tracking needs to be precise. Frappe Lending ensures that every repayment is split correctly and reflected in each co-lender’s books. Whether it’s principal repayment, interest collection, or penalties, the system automates accounting entries so that you always have an accurate breakdown without spending hours on reconciliation.

Transfer loans between branches

Sometimes loans need to be reassigned—whether due to operational restructuring, borrower location changes, or internal mergers. Transferring a loan between branches shouldn’t mean hours of manual adjustments. With Frappe Lending, you can move loans from one branch to another while keeping all financial and accounting records intact. The system updates borrower details, accounting dimensions, and ledger entries automatically, ensuring a smooth transition without data mismatches.