M2P Fintech
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In the high-stakes world of finance, there's a hard truth many lenders overlook: the true profit engine of lending isn't origination—it's collections management.
The true measure of lending success is the velocity of capital return, ensuring continuous reinvestment into subsequent growth cycles.
At M2P, we see loan collections as the engine driving sustainable lending, and our solution, M2P Collect, is purpose-built to help lenders master this critical function of loan management with unprecedented precision, agility, and scale. To understand why this mastery is crucial, we must first examine the inherent economic cycle of loan management.
The Foundation of Lending's Engine
Lending is often seen as a transaction of trust. But it is fundamentally a cycle of capital velocity:
Capital Out: Funds go out as loans, initiating growth through effective loan management software.
Capital Back: Interest and principal return as repayments, generating profit through rigorous collections management strategies.
Capital Recycled: Recovered capital fuels new loans, creating a flywheel for sustainable growth powered by intelligent loan collections.
When a borrower defaults, this cycle breaks down, slowing growth, draining cash reserves, and eroding investor confidence. This urgency is particularly pronounced in high-growth, high-risk environments like the current Indian lending landscape.
Tackling Delinquency in India’s Lending Landscape
India’s lending ecosystem has grown explosively, but this rapid expansion has brought persistent challenges, particularly in the unsecured and microfinance segments. As of FY25:
Gross NPAs across public sector banks have dropped to 2.58%, a significant improvement from 9.11% in FY21 (1).
Over 50% of new retail NPAs are emerging from unsecured loans (personal loans and credit cards), showing distinct signs of stress (2).
In the microfinance sector, delinquency rates have climbed above 13%, driven by overleveraging, poor underwriting, and regional economic pressures (3).
Key Drivers of Delinquency
Overleveraging: Borrowers, especially in rural and semi-urban areas, are taking multiple loans from different lenders without adequate income assessment, complicating loan management.
Weak Underwriting: Rapid digital lending growth has led to minimal verification, increasing exposure to high-risk borrowers, increasing burden on collections management.
Economic Vulnerability: Daily wage earners, farmers, and first-time credit users are more susceptible to income shocks, requiring sympathetic collections solution.
Regulatory Tightening: RBI’s increased scrutiny and capital reserve requirements have slowed disbursals, especially in high-risk zones, demanding smarter loan management software workflows.
Beyond Recovery: The Strategic Value of Collections Management
A well-run collections process does more than recover dues, it protects the lender’s reputation, ensures regulatory compliance, and builds borrower relationships. M2P Collect is specifically engineered to help lenders transform collections management, delivering value across three critical domains:
Business Health
M2P Collect helps lenders maintain steady cash flows by reducing delinquency through proactive engagement and smart allocation of loan management software features.
Regulatory Compliance & Risk Management
With detailed performance reports and real-time dashboards, lenders can monitor NPAs, ensure compliance, and manage risk effectively via collections management.
Capital Access & Investor Confidence
A robust loan collections strategy powered by M2P Collect enhances lender credibility, making it easier to secure funding from banks and capital markets.
Digital Payments: Convenience Meets Compliance
Modern borrowers expect convenience. The system integrates seamlessly with digital payment infrastructure to offer:
UPI, QR codes, and wallet-based payments
Auto-debit mandates via e-NACH and UPI
Instant “Click to Pay” links sent via SMS, WhatsApp, or email
Branch deposit tracking and reconciliation
This ensures borrowers can pay anytime, anywhere, reducing friction and improving repayment rates.
M2P Collect: Feature-Rich Collections Infrastructure
Mobile Field Application
Equip field agents with a powerful app that includes:
Geo-tagged borrower mapping
Route planning and visit scheduling
Instant payment link generation
Receipt capture and event logging
Offline mode for remote operations
Comprehensive Dashboard
Get a real-time overview of your collections management portfolio:
Portfolio health and risk segmentation
Receipt trends and payment velocity
Case breakdowns by geography, agent, and borrower type
Drill-down views for granular analysis
Detailed Performance Reports
Access actionable insights on:
Case resolution timelines
Agent productivity and visit outcomes
Payment collection efficiency
Call events and borrower interactions
Rule-Based Allocation
Automate case distribution using:
Agent roles and capacity
Borrower risk profiles
Location, group, and product attributes
Escalation logic for unresolved cases
Digital Campaigns
Run intelligent, rule-based outreach across:
SMS, WhatsApp, Email, and Voice Blasts
Personalized messaging based on borrower behavior
Automated reminders and nudges
Campaign performance tracking
Enhanced Review Screens
Supervisors and managers can monitor:
Agent progress and visit history
Call event logs and borrower responses
Deposit tracking and payment status
Geo-distribution of cases and outcomes
Collections with Empathy and Precision
M2P Collect empowers lenders to achieve the critical balance between operational rigor and borrower empathy. Our platform supports long-term relationship building by enabling:
Behavioral nudges that encourage timely payments
Restructuring workflows for borrowers in distress
Positive reinforcement through gamified incentives
Trust-building communication that fosters long-term relationships
Ultimately, M2P Collect allows lenders to achieve the critical balance between operational rigor and borrower empathy.
Turn your loan collections process into a strategic, intelligent function that drives sustainable, long-term business growth.
Schedule a demo to witness the future of smart collections.
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