11 Free/Open Source Loan Management Software in 2020

Nilam Oswal

Nilam Oswal

Senior editor

Parul Saxena

Chief editor

Last updated: August 28, 2020

Managing loans is a vital aspect for organizations such as businesses mortgage firms, banking institutes, commercial lending firms, and many more. After all, customers want to feel secure when they decide to undertake a loan for personal or professional reasons. There are vital privileges that an open source loan management software brings to you, that we would discuss in the article.

Companies need to make sure that they do not make errors while disbursing loans. This is the prime reason that organizations across the globe are investing in loan management software solutions. In fact, it is expected that the international loan servicing software market will grow by USD 446.54 million during the period 2019-2023.

Why Do You Need To Invest In Loan Servicing Software?

Are you questioning the need to spend money and time to get loan management software? Well, it is high time to take the plunge and move over to automated solutions for managing your loan processing. Here are some compelling reasons to invest in the best loan servicing software for your business firm:

  • Reduces Errors: A professional loan management solution reduces computational errors due to human element and increases accuracy in all loan-related operations.
  • Better Compliance: Since regulatory compliance is essential, companies often opt for advanced loan management solutions. These tools ensure all documentation remains in order, and follow mandatory regulations.
  • Improved Data Security: Loan servicing software ensures stringent security measures that do not compromise the safety of client data. Password protection, end-to-end encryption, firewalls, and authorized user control are a few measures that prevent hacking or any data-theft. 
  • Excellent Customer Experience: It is important for companies to get open source loan management software which is automated to boost the speed of processing and make faster decisions.
  • Minimize Risks and Bad Debts: Loan servicing software can help managers identify delinquent accounts so as to take proactive action. This reduces the risk and regulates the flow of cash.

Best Free and Open Source Loan Management Software:

1. LenderSuite

LenderSuite - Open Source Loan Management Software

LenderSuite is a novel loan management software that satisfies the needs of small-medium businesses and helps them manage the entire loan cycle – right from the beginning to the end. This software can help businesses increase profitability parameters by structuring their loan portfolios and gain access to real-time financial data.

Key Features

  • Compatible with Windows 7 and Windows 8 and includes the following databases — MSSQL, Access, Pervasive, MSSQLExpress
  • Can manage 17 different types of different loans, and enhances workflow through automation of repetitive tasks 
  • Has the capacity to store vast amounts of images, text documents, and PDF files for individual loans


  • Manages the entire loan cycle, right from origination to closure.
  • Functional features, navigable user interface make it easy to operate
  • Caters to all business requirements of borrowers, investors, loan affiliates and back-office personnel


  • Tech support needs to be enhanced for first-time users

USP: It can handle all kinds of portfolios and can be customized for better efficiency.

2. OpenCBS

Opencbs - Open Source Loan Management Software

OpenCBS is a holistic loan management software solution that manages diverse business operations — from loan applications, processing of documents, and final approval from clients. It has a navigable interface with a low learning curve, hence it is an ideal choice for all kinds of organizations. It has a comprehensive host of features, that reduce the workload and save time.  

Key Features

  • Manages loan applications from multiple channels such as websites and via client officers
  • Provides statistics on loan approvals and performance indicators
  • Users can easily add attachments such as client images, IDs, and excel documents


  • Intuitive system that makes it easily navigable
  • Customizable down to the field level
  • Ability to extract data and integrate with other systems


  • There may be bugs in upgraded versions that disrupt operations

USP: One core benefit of using OpenCBS is that it has an intuitive task management interface. Managers can monitor all the loans that are pending for approval and have a clear view of the loans in the pipeline.

3. Apache Fineract

Apache Fineract - Open Source Loan Management Software

Apache Fineract is an all-in-one open source loan management software that caters to the needs of startups, small banking firms, credit providers and financial companies. It is power-packed with great features such as client data management, portfolio management, financial reporting, and real-time accounting analytics. It can help in digitizing all major operations, and increase engagement to the possible level.

Key Features

  • Can be deployed both on-premise and as a cloud-based solution
  • Can support front-end interfaces online as well as offline on both mobile and desktops
  • Has functional modules such as audit management and credit approval 


  • Reliable, flexible and scalable solution for all kinds of businesses
  • Open APIs and microservices architecture for better efficiency
  • Secure client data management


  • Few bugs with an implementation that may disrupt workflow management

USP: One unique feature is that you can combine Apache Fineract microservices to create new software platforms for digital financial service providers. 

4. HES Online Lending Software

HES Online Lending Software

HES Online Lending Service is a new-age loan management software that can drive efficiency in all business operations. This fully-featured loan management solution manages every loan-related process, right from the initial contact with the customer to the closure of the account in a streamlined manner. It has an interactive dashboard that enhances visibility and encourages team collaboration amongst the workforce.

Key Features

  • Ensures that companies meet all mandatory regulatory compliance – domestic and global
  • The system can be deployed both on cloud or on-premise 
  • Has integrations with many business applications and is highly scalable


  • Follows the best practices of the lending industry and is useful for offline loan origination
  • Has advanced reporting and analytical  features
  • Highly compliant and scalable


  • Users may experience technical glitches at times that hamper productivity


No licensing fee

USP: HES Online Lending software leverages business intelligence and AI-driven technologies, thus bringing about speed and agility in the daily task flow management.

5. Zoho Loaner

Zoho Loaner - Open Source Loan Management Software

Zoho Loaner is an open source loan management software that simplifies the entire loan cycle process for financial organizations. It integrates with many other products from the Zoho suite such as CRM platforms, SalesIQ, and to manage all your business requirements. It is a user-friendly and popular tool that enhances productivity and saves time. 

Key Features

  • It is easy to view, borrow, and lending products on the go
  • Allows users to design your ideal dashboards through their drag-and-drop builder
  • Easily schedules alert notifications to borrowers when their due date approaches


  •  Great value-for-money product
  • Highly flexible, customizable and scalable
  • Focuses of data security through various integrated safety features


  • Due to internal complexity, users may require initial tech support or training

Upgrade for

  • Basic: 600 per user per month
  • Premium: 1200 per user per month
  • Enterprise: Custom quote

USP: Zoho Loaner is a robust loan management software that never experiences any downtime and is highly responsive.

Looking for Loan Management Software? Check out SoftwareSuggest’s list of the best Loan Management Software solutions.

6. CloudBankIN

CloudBankIN - Open Source Loan Management Software

CloudBankIN is an automated platform that is a smart tool for all loan management processes. It has a number of customizable modules that aid in better decision-making and seamless operations. CloudBankIN caters to all aspects of the loan lifecycle and makes it easier for employees by sharing real-time data.

Key Features

  • Manages individual loans, group loans, or joint liability group loans
  • Allows users to set maximum outstanding amount for different loan products
  • Streamlines the entire on-boarding procedure with eKYC process


  • Robust loans management Key Features such as mortgages, audit trail management and loan servicing
  • Simple user-interface with easy navigability
  • Highly scalable, customizable and agile solution for all business sizes 


  • Users may experience difficulty to reach support staff members on the phone at times

USP: CloudBankIN is built exclusively for the micro-finance and NBFC industry. It ensures that loan processing operations are streamlined and enhances team communication.

7. TheLoanOffice

TheLoanOffice - Open Source Loan Management Software

TheLoanOffice is an automated platform for loan management that comes with the option of a free trial. It has enhanced functional capability to handle all stages of the loan management cycle. TheLoanOffice automates and streamlines all major business processes to ensure higher productivity, client engagement, and better teamwork.

Key Features

  • Has an intuitive interface where most functions can be performed in one or two clicks
  • Provides highly effective and quality personalized support from industry experts
  • Can be hosted on both cloud storage and on-premise server


  • Extremely user-friendly platform with smart features
  • Provides fantastic tech support to first-time users
  • Advanced reporting and analytical capabilities that sort and arrange real-time data


  • The reminders section is not visible to users and can be worked upon

USP: What sets this software apart is its high-level security. The system has many integrated features that make sure that data remains safe from hacking or theft.

8. TurnkeyLender

TurnkeyLender - Open Source Loan Management SoftwareTurnkeyLender is an all-inclusive free and open source loan management software that automates all major tasks and simplifies workflows. It helps organizations manage various domains such as the loan cycle, SME financing, money lending, leasing, and in-house finance. It is a reliable system that is affordable, scalable, and flexible in nature.

Key Features

  • Automates repetitive tasks to ensure fast processing of loans
  • Powered by machine learning algorithms for better accuracy and security
  • Has a minimalistic interface with an interactive user-friendly dashboard


  • Great security features and customization options
  • A customer-oriented support team that remain available round the clock
  • Flexible product that allows users to launch new credit products easily 


  • The reporting functionality is not well-developed

USP: This open source loan management software is popular due to its robust automation Key Features that save time, money, and effort.

9. AutoPalSoftware

AutoPalSoftware - Open Source Loan Management Software

AutoPalSoftware is a reliable and data-driven automated open source loan management software. It is designed for businesses of all sizes and has a diverse range of features. With AutoPal, companies can build functional websites for customers to apply for loans and make payments easily.

Key Features

  • Offers end-to-end solutions for an amortization schedule, loan servicing, and collections management
  • Ensures that organizations adhere to mandatory domestic and international regulations
  • Can be hosted on both cloud storage and on-premise server


  • Provides excellent technical support to the user community
  • Delivers all essential information related to loan management in a few clicks
  • User-friendly solution with a short learning curve 


  • Users may experience trouble logging in at times, due to downtime issues

USP: What sets this software apart is that it is extremely easy to use, and companies can also download training videos to help their workforce understand the modules better.

10. Fincraft

Fincraft by Nelito Systems is fully-featured loan management and banking solution for start-ups and small enterprises. It helps organizations handle a vast range of activities such as risk management, loan servicing, and corporate banking. Fincraft automates all routine tasks, streamlines business communications, and helps in team collaboration.

Key Features

  • Has an intuitive dashboard that displays real-time information and key performance parameters
  • Strong reporting abilities for better decision-making
  • Provides personalized user support from specialists and domain experts


  • Innovative features that handle the loan management cycle from origination to closure
  • Provides responsive support to users
  • Has stringent data security measures to protect sensitive information


  • It is possible that users may experience technical snags or glitches at times

USP: Finecraft is popular due to its automation Key Features as they reduce workload and bring about efficiency in daily operations.

11. Finabile ( Habile Technologies)

Finabile - Open Source Loan Management Software

Finabile is a robust and full-featured loan management system. It is modular and has is designed to manage diverse operations for all kinds of financial companies. Finabile can handle various time-consuming tasks such as collections management, loan origination, and accounting management, thereby driving productivity in daily operations.

Key Features

  • Can be deployed both as a cloud storage solution and on-premise server
  • Has advanced reporting capabilities for in-depth analysis
  • Users can design a personalized dashboard with a drag-and-drop interface


  • Has a great technical support team that remains available for troubleshooting
  • Interactive dashboard that displays key performance indicators
  • The navigable interface that is easy to operate


  • There may be bugs that lead to problems in loading, thus causing the delay

USP: What sets this software apart is its versatile Key Features that can be customized to suit specific business requirements.

Final Thoughts

There is no doubt that loan servicing is a critical activity for all organizations. It is important to invest in the best loan management software to help your company gain a strong competitive advantage. It will raise all vital bottom-line results and streamline all business operations effectively.

So, get the best loan management solution to witness a positive transformation and achieve instant business success!

Nilam Oswal
Nilam Oswal is a Content Marketing Head and Brand Strategiest at SoftwareSuggest. When she's not hard at work, she can be found wandering, reading, and just generally having a good time in life.

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