Products & Services

KLS for Commercial Banks

Kisan Credit Card (KCC) Scheme introduced in 1998, and revised in 2012, was conceived to enable farmers get adequate and timely credit by ushering in flexibility and transparency in operations. However, practically all the Core Banking Solutions (CBS) available in the market are not equipped to cater to the unique processes for origination and maintenance of agricultural loans.

VSoft’s Kisan Loan System has achieved breakthrough innovation not only in the way KCC loans are processed but also in the way farmers are serviced to make the lives of bankers and farmers far less complicated and far more convenient than it is at present.

Some of the most significant innovations in VSoft’s KLS are:

  • Unifies Multiple Loan Accounts into a Single Savings cum KCC Account

In order to provide timely and adequate credit to farmers to meet their short term, medium term and long term loan needs, banks need a simplified loan processing platform. One of the fundamental simplifications in this regard is a capability to accurately and efficiently handle multiple concurrent loans, each having different durations, interest rates, repayment schedules, insurance premium and so on. IRIS KLS achieves this by processing each loan as a Line of Credit and linking them with a single Savings cum KCC account of a farmer.
  • Processes Loan and Savings Accounts Separately through a Real-time Interface between the Switch and the CBS

Transferring loan funds simply into farmer’s Savings account for facilitating Rupay card drawals, while it may enable on-demand loan drawals, leads to additional interest to banks by way of interest on idle SB account balance and also results in sizable loss to farmers by way of interest accrual on the entire loan amount, including the unused portion, at the higher loan rate of interest. IRIS KLS interfaces with the ATM Switch in real-time to facilitate on-demand validation and processing of loan transactions through the Savings account. Loan withdrawals are validated and the requested amount only is auto swept into the Savings account, all in real-time. Later as part of the day end processes, the GL entries of the loan transactions are sent to bank’s CBS.
  • Facilitates Loan (Credit) Transactions through a Savings (Debit) Account

KLS facilitates loan account operations through the Savings account. Because the transactions are effectively happening on a Savings account, the bank and the farmer are not liable to pay the Credit Interchange charges that are higher than the Debit Interchange charges.
  • Enables Convenient and Real-time Repayment of Loan Dues via Micro ATMs by Farmers

Rural and semi-urban areas have very low penetration of brick and mortar branches and are often the reason for delay in timely repayments of agriculture loans. One of the most unique feature of IRIS KLS is that it enables loan repayments through a self-service channel such as a Micro ATM or POS or through an ATM that can take cash deposits.
  • Provides a Parameterised Platform to Create and Maintain Unlimited Loan Products

The parameterized design of the IRIS KLS allows banks to set up innovative, localized loan products. For example, a Loan Product can have a unique Interest Category that decides how much interest should be charged and when. Bank can set multiple Interest Categories and each Interest Category can be set with multiple Slab-wise ROIs and Penal ROIs based on a range of amount and duration.

Download Product Brochure