Risk & Compliance - Frappe Lending

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Risk & Compliance

Lending comes with risk, but spotting trouble early can make all the difference. Missed payments, overdue loans, and rising NPAs can impact cash flow and compliance if not tracked properly. Manually monitoring overdue accounts and adjusting classifications takes time and leaves room for errors. Frappe Lending helps you stay ahead by automatically tracking overdue loans, classifying NPAs, and ensuring your credit and risk reporting is always accurate.

Track Days Past Due (DPD)

Auto-classify NPAs

Override NPA classifications

Track Days Past Due (DPD)

A late payment today might not seem like a big issue, but when multiple accounts start falling behind, it becomes a serious problem. Frappe Lending keeps track of overdue days for every loan, updating the count daily and maintaining a complete history of payment delays. Whether you're reviewing an individual loan or analyzing trends across your portfolio, you always have a clear view of outstanding payments and potential risks.

Auto-classify NPAs

When overdue loans start piling up, marking them manually as Non-Performing Assets (NPA) is not just tedious—it’s risky. Delays in classification can result in non-compliance and inaccurate financial reporting. Frappe Lending ensures that as soon as a loan crosses the predefined threshold, it’s automatically marked as NPA. This way, you always have an up-to-date view of your loan book, with problem accounts flagged before they become major liabilities.

Override NPA classifications

Not all overdue loans follow the same pattern. Some might be close to recovery, while others may need immediate intervention. Frappe Lending gives you full control to override system classifications when necessary. If a borrower is restructuring their loan or has made partial payments, you can adjust their classification manually, ensuring your records reflect real business decisions rather than rigid automation.