5 reasons why manual loan booking is still relevant for lending

Contrary to popular belief, digital lending isn’t restricted to or intended solely for tech-savvy persons. Our reality in Africa and other developing nations is very different. While we are glad that digital lending has come to stay and everyone should “get with the times,” millions of Africans remain left behind with little to no access to credit.

For instance, imagine a trader with very minimal digital exposure looking to stock up on their goods but urgently needs a loan to finance; with manual loan booking, you can book, approve and disburse loans to these special customers, ensuring no one gets left behind or without access to credit. In this regard, your lending business can be counted amongst the few actually solving real-life financial dilemmas common to the average African. 

Find below 5 reasons why manual loan booking still holds much relevance in the African lending ecosystem today:

Accessibility for less tech-savvy borrowers

Manual loan booking caters to borrowers who, for various reasons, cannot or do not wish to sign up for mobile or web applications; it is quite inclusive. If your goal as a lender is to scale and reach a broader market (which we are sure it is), then it’s necessary to consider a loan management software that offers manual loan booking as one of its features.

Special type of loan offers to customers

As key players in the lending industry, we recognize the diversity of financial circumstances of your customers, so we understand that one size doesn’t fit all. Manual loan booking helps level the playing field. It offers every one of your customers (especially the often marginalized) a chance to get loan terms, origination fees and interest rates that fit their financial situation and needs. For example, The small kiosk owner with no functional bank account may not have a BVN that allows for the usual method of loan application and so may need a loan unique to her situation. The Lendsqr manual loan booking feature enables her lenders to override specific Risk Assessment Criteria (RAC) and allows them to offer these special types of loans. 

Swift loan processing

Borrowing is almost always motivated by a sense of urgency, and as a result, your consumers will shout your praises louder if you can meet their immediate financial needs. Manual loan booking enables you to respond quickly and solve your customers’ financial troubles, mainly when prompt disbursement is paramount. For example, A mother who has to meet up with the school fees payment deadline for her child would delight in the swiftness of your loan process.

Overcoming technological barriers

Over 110% of the total 200% of Nigerians—urban and rural combined—don’t own smartphones. As a digital lender, how can you, in good faith, claim financial inclusivity when more than half the Nation with no digital access still lacks access to credit? With manual loan booking, individuals without smartphones or internet access are not left out. That is how true financial inclusivity is practiced; genuine financial inclusivity is not just a claim but a demonstrated commitment to reaching every population segment, even those without digital access. Find out if your loan business is truly financially inclusive.

Reach the underserved using field agents

Rather than wait for customers to find you, your agents go out to find prospects. For lenders utilizing field agents for on-ground assessments, manual loan booking provides a practical approach, allowing these agents to facilitate loan processes even in areas with limited digital connectivity. One of our lenders currently utilizes this approach to reach underserved traders. Read more about them.

To sign off

We’d like to reiterate once more that while it’s easy to get carried away with the positive impacts of technology in digital lending. We must also acknowledge that millions of Africans still navigate a world with limited digital exposure. As a smart digital lender looking to solve real-life financial dilemmas, the manual loan booking approach becomes a bridge, connecting your less tech-savvy customers with the required financial assistance your loan business provides. Let’s get you started on a loan management software that offers manual loan booking today. Send us a message at [email protected] or visit Lendsqr.com.