Tamilnad Mercantile Bank (TMB) has launched a new Loan Origination System (LOS) and inaugurated its first Credit Management Centre (CMC) in Thoothukudi. The new system aims to improve the bank’s lending operations by increasing speed, accuracy, and standardization across the loan processing workflow. The technology, developed in partnership with Nucleus Software, will be rolled out in phases over the next six months across all key loan categories, including MSME and agriculture.
The new system is expected to significantly reduce loan approval Turn Around Time (TAT) and enable the bank to manage higher loan volumes with improved operational efficiency. The CMC will centralize credit processing, allowing branch heads to focus on liability and jewel loan business. According to Salee S Nair, Managing Director-CEO of TMB, the new LOS and LMS platform marks a major milestone in strengthening the bank’s digital lending architecture.
Once fully implemented, the system will enable loan sanctions of up to Rs 50 lakhs to be completed in a straight-through process within 30 minutes, using data-based algorithms. This is expected to be a game-changer for the bank, enabling faster and more efficient loan processing. The new system will also improve the overall customer experience, providing faster access to credit and reducing the time and effort required to obtain a loan.
The launch of the new LOS and CMC is part of TMB’s efforts to strengthen its lending operations and improve its competitiveness in the market. The bank aims to leverage technology to improve its operational efficiency, reduce costs, and enhance customer satisfaction. With the new system, TMB is well-positioned to meet the growing demand for credit from MSMEs, farmers, and other customers, and to establish itself as a leading player in the lending market. Overall, the new LOS and CMC are expected to have a significant impact on TMB’s lending operations, enabling the bank to provide faster, more efficient, and more customer-centric services.