QUICK ANSWER

A Loan Collection System (LCS) manages the repayment and recovery workflow — the layer your LMS doesn't cover. LMS handles origination, KYC, disbursement, and accounting. LCS handles what comes after disbursement: EMI tracking, UPI AutoPay/eNACH mandates, failed payment recovery, overdue prioritisation by DPD bucket, Promise-to-Pay follow-up, field collection agent dispatch, and bank reconciliation. FastFee is an LCS that works alongside any LMS for NBFCs, MFIs, and cooperative societies.

NBFC · MFI · Cooperative Society · India

Loan Collection System for NBFCs & MFIs

FastFee is the collection layer your LMS doesn't have. It manages everything from mandate to reconciliation — so your LMS handles origination and accounting while FastFee handles repayment, overdue, and recovery.

Works alongside FinnOne, Nucleus, Finflux, Branchsol, and any other LMS — no rip-and-replace required.

Book Free Demo →AutoPay / eNACH detail →

LMS vs Loan Collection System — What Each Does

Most NBFCs have an LMS. Most are missing the dedicated collection layer — which is why overdue accounts accumulate faster than the ops team can work through them.

JobLMSLCS (FastFee)
Loan application processing✓—
KYC and credit assessment✓—
Disbursement and accounting✓—
Interest accrual and ledger✓—
EMI schedule and due date tracking✓✓ Core
UPI AutoPay / eNACH mandate management—✓ Core
Pre-debit notification to borrower—✓ Core
Auto-debit execution and status tracking—✓ Core
Failed payment handling and retry—✓ Core
Overdue prioritisation (DPD buckets)Marks NPAManages recovery workflow
Promise-to-Pay logging and tracking—✓ Core
Field collection agent dispatch—✓ Core
Bank reconciliationAccounting entryAuto-match + exceptions
WhatsApp reminders with payment link—✓ Core

How FastFee LCS Works

From LMS flagging a due EMI to cash in bank — the full collection and recovery workflow.

01
STEP 01
LMS flags upcoming EMI

The LMS records that an EMI is due in 3 days. FastFee receives the due date and amount — via import or API — and initiates the pre-debit notification to the borrower.

02
STEP 02
AutoPay / eNACH debit

On due date, FastFee executes the mandate debit. Success: EMI marked paid, receipt sent. Failure: reason captured, recovery workflow triggered.

03
STEP 03
Overdue prioritisation

Missed EMIs are automatically bucketed: 1–7 DPD → WhatsApp follow-up; 8–30 DPD → escalation; 30+ DPD → field collection. Agents see their daily priority list sorted by risk and DPD.

04
STEP 04
Field collection dispatch

Agent receives their day's collection list with addresses, outstanding amount, and past payment history. They visit, record outcome, collect cash or UPI, generate receipt on-spot.

05
STEP 05
PTP tracking

If borrower promises to pay later, agent logs Promise-to-Pay date and amount. FastFee tracks PTP compliance — if promise is broken, account automatically escalates to the next DPD bucket.

06
STEP 06
Reconciliation

End of day: bank credits auto-matched to EMI records. NACH returns auto-matched to failed debits. Unmatched items surface as exceptions. Branch-wise and portfolio-level collection reports generated.

Who Uses FastFee as an LCS

NBFCs (Type I & Type II)

EMI collection, eNACH mandate management, DPD reporting for board/RBI, field recovery for NPA accounts

Microfinance Institutions (MFIs)

JLG/SHG group collection, weekly instalment tracking, field agent dispatch, centre meeting reconciliation

Credit Cooperative Societies

Member loan repayment tracking, multi-branch collection, field agent app, end-of-day cash reconciliation

MACS (Multi-State Cooperative)

Cross-state branch visibility, member-level collection, PTP compliance across districts

MSME / Business Loan Lenders

Monthly EMI tracking, eNACH mandate, overdue follow-up via WhatsApp, reconciliation

Vehicle Finance NBFCs

Vehicle loan EMI, GPS field collection for overdue vehicle hypothecation accounts, repossession queue

FAQ

What is a Loan Collection System (LCS)?

An LCS manages the repayment and recovery workflow — what happens after loan disbursement. It tracks EMI due dates, executes AutoPay/eNACH mandates, handles failed payments, prioritises overdue accounts by DPD bucket, dispatches field agents, tracks Promise-to-Pay, and reconciles bank receipts. Different from an LMS which handles origination, KYC, disbursement, and accounting.

What is the difference between LMS and LCS?

LMS = origination side (application → KYC → credit → disbursal → accounting). LCS = repayment side (EMI → mandate → debit → failed debit → overdue → field collection → PTP → reconciliation). Most NBFCs have an LMS but not a dedicated LCS — which is why recovery is manually intensive.

Can FastFee work alongside my existing LMS?

Yes. FastFee is designed as a collection layer alongside any LMS. EMI schedules import from the LMS; payment and reconciliation data exports back. No rip-and-replace required.

Does FastFee work for cooperative credit societies?

Yes. FastFee supports cooperative credit societies (CCS), MACS, and PACS — member loan repayments, weekly collection rounds, field agent tracking, multi-branch visibility, and end-of-day reconciliation.

RELATED PAGES

NBFC AutoPay eNACH CollectionNBFC EMI Collection SoftwareField Collection App for LoansOverdue Loan Recovery SoftwareLoan Collection App IndiaMicrofinance Loan Collection

Add the collection layer your LMS is missing

Mandate, DPD buckets, field collection, PTP, reconciliation — live demo on your portfolio in 10 minutes.

Book Free Demo →
FastFee Authority Hubs
Education, finance & recurring collection resources
All Free ToolsTax & Finance HubSchool Fee HubCollege Fee HubCoaching Fee HubLending & EMI HubRecurring PaymentsUPI & Payments
Evidence & Analysis
Research methodology, evidence-first case studies, decision guides and industry analysis.
FastFee ResearchCase StudiesDecision-Maker GuidesIndustry AnalysisAbout FastFee
Official FastFee profiles
Verify the official FastFee brand across publishing, video, business and app channels.
Medium ↗YouTube ↗LinkedIn ↗Google Play ↗Google Business ↗