In this guide 6 sections
A small NBFC should track disbursements, demand against collection, accounts by days past due, collateral held and released, and receipts not yet matched to a loan. Each figure should come from recorded entries, not a rebuilt sheet. GullySystem’s Loan Management System keeps these on one loan record for smaller lenders.
Disbursements and the shape of the book
Start with what went out. List disbursements for the month by product, branch, officer and source, such as a DSA, a walk-in or a referral. Part disbursements belong on the list too, against the sanctioned amount.
Then look at what closed. Loans fully repaid, renewed or topped up change the book as much as new lending. Read both together.
The result is a simple picture of the book by product. It shows where lending is growing and where it is shrinking.
Demand against collection
Demand is what fell due this month. Collection is what came in against it. The gap between them, by collector and by branch, is the most useful single view a lender has.
Split collection by mode as well. NACH credits, UPI transfers, cheques and field cash each fail in their own way. A NACH return or a bounced cheque should show against the loan the day the bank reports it.
- Demand and collection by branch
- Demand and collection by collector
- Collection split by mode
- Returned NACH and bounced cheques
Accounts by days past due
Sort every account into current, 1 to 30, 31 to 60, 61 to 90 and 90 plus days past due. Count the accounts and the outstanding in each bucket.
The month’s movement matters more than the totals. How many accounts slipped from current into the first bucket, and how many came back? That flow shows where follow-up should go next.
Keep promises to pay and visit notes on the loan itself. How an account is classified for reporting is a question for your auditor and adviser.
- Accounts and outstanding per bucket
- Accounts that slipped a bucket this month
- Accounts that came back to current
- Promises to pay kept and broken
Collateral, documents and approvals
Gold packets, RC copies and title deeds need a register that matches the safe. Each month, list collateral received, collateral released and loans closed with collateral still held.
Check files as well. Any loan disbursed with a document missing should be listed with the missing item. Every sanction should carry the approver’s name and date.
Matching the book to the bank and the accounts
Receipts in the loan book should agree with credits on the bank statement. Unmatched credits sit on a suspense list until someone traces the borrower. Keep that list short.
Finally, the loan book total should agree with the books your accountant keeps. Agree who signs off each month. A difference carried forward unexplained only grows.
Monthly loan book review sheet
One page, with rows for disbursements, closures, demand and collection, bucket movement, collateral and unmatched receipts. Each row names the person who prepares the figure and the person who checks it. Keep twelve months side by side.
Open a blank worksheet to printQuestions owners ask
Which monthly figure tells a lender most?
Movement between buckets. Accounts slipping from current into 1 to 30 days are the earliest warning. Watching that flow each month shows where collectors should go.
Can a small NBFC keep these figures in Excel?
For a small book, yes, if one careful person keeps it. It gets hard once collectors, branches and several products feed the same sheet.
Does loan software file regulatory returns?
Not GullySystem’s. The Loan Management System records applications, approvals, disbursements and receipts with names and dates. It does not file returns or report to bureaus. Your compliance adviser decides what those need.