Collateral & Security - Frappe Lending

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Collateral & Security

Secured loans give lenders confidence, but managing collateral can be time-consuming. Keeping track of pledged assets, ensuring accurate valuations, and handling releases shouldn’t slow down your operations. Frappe Lending takes care of the entire process, so you always have a clear record of the security backing your loans.

Define collateral types

Assign and release security

Track security prices

Get shortfall alerts

Define collateral types

Different types of loans require different kinds of security. With Frappe Lending, you can categorize collateral into property, gold, stocks, or any asset type relevant to your lending model. Each security type is recorded in a structured way, ensuring that you have a clear view of the assets pledged against active loans. Every detail is structured and easily accessible, ensuring you always have a clear view of pledged assets.

Assign and release security

Linking collateral to a loan is simple. Once an asset is pledged, you can assign it to a loan with a few clicks, ensuring that it remains recorded until the borrower repays. If a single security is pledged against multiple loans, Frappe Lending keeps track of the allocations, preventing the overuse of an asset. When a loan is fully settled, releasing the collateral is just as easy—records are updated instantly, and borrowers regain ownership without delays or extra paperwork.

Track security prices

Some assets, like stocks or commodities, change in value frequently. Instead of updating records manually, Frappe Lending lets you track price fluctuations and automatically applies the latest valuations. This helps ensure that your loan-to-value ratios remain accurate, so you can monitor exposure and adjust collateral requirements if needed.

Get shortfall alerts

A drop in collateral value can put a loan at risk, but keeping track of every asset manually isn’t practical. Frappe Lending does this for you, sending alerts when a pledged security falls below the required threshold. This allows you to act quickly, whether that means requesting additional security, adjusting loan terms, or reviewing risk exposure.