Loan Origination System (LOS) for Ratnaafin (Supply Chain Finance)
Client Overview
Ratnaafin Capital PrivateLimited (commonly known as Ratnaafin), established in November2018, is an Ahmedabad-based, RBI-registered NBFC specializing in MSME financial services such as business loans, working capital, supply chain finance, and solar finance.
Client Location
Ahmedabad, India
Industry
Financial Services – Supply Chain Finance (SCF)
Solution
Web-based Loan Origination System (LOS)
Tech-Stack
Frappe Framework 15.61.0
800+
Employees
48
Branches
5000+
Channel Partners
Business Challenge in Supply Chain Finance Operations
Ratnaafin had existing LOS systems for other loan products; however, it did not have a structured, dedicated system for Supply Chain Finance (SCF). Over time, SCF onboarding and verification processes faced challenges in scalability, maintainability, configurability, auditability, and integration readiness.
Key issues included
Limited scalability for future SCF products
High maintenance effort due to custom architecture and manual dependencies
Low configurability for changing workflows
Increasing manual effort in onboarding and verification
Weak audit trail and compliance readiness
Integration limitations with external verification systems
Loan Origination System (LOS) – Core Implementation
The objective was to redevelop the LOS using the Frappe framework, while retaining continuity with Ratnaafin’s business processes.
Reduce manual onboarding effort through automation and OCR-based data extraction
Improve data accuracy via KYC extraction
Strengthen compliance and auditability through controlled workflow
Enable integrations with external verification and bureau systems
Build a scalable base for future loan products with configurable workflows
Scope of Implementation
In scope:
Applicant onboarding (Individual and Legal Entity)
KYC document upload and automated data extraction
Identity verification through applicant name matching
Credit bureau integration (score + report retrieval)
Stage-driven workflow management for SCF Leads
Vendor-specific API integrations
Configurable document requirements, validations, workflows, and notifications
Out of scope:
Product-specific workflow variations
Loan disbursement and repayment processing
Accounting, ledger, and post-sanction monitoring
Workflow stages:
Solution Architecture & Lead-Centric Design
The LOS is a web-based application built on the Frappe framework and designed around a lead-centric model.
Each financing request is represented as an SCF Lead.
The SCF Lead progresses through controlled stages:
At each stage, the system enforces validations, role-based controls, and mandatory checks to ensure data completeness, accuracy, and compliance while maintaining operational flexibility.
Most applicant data can be extracted directly from uploaded documents using OCR, minimizing manual entry and enabling users to move ahead in the workflow faster.
The platform is highly configurable and supports requirement changes without code-level modifications. Document requirements, validations, workflows, notifications, and visibility rules can be adjusted based on evolving business needs.
Easy error navigation is built into the workflow — whenever a required field or document is missing, the system guides users directly to the relevant section for correction.
Role-based visibility ensures users only see information relevant to their responsibilities, supported by configurable permissions and access controls.
Up until the Disbursement Queue stage, key details remain flexible and editable as required by business processes, for example, updating applicant roles such as converting an applicant to a co-applicant.
Core Functional Modules Delivered
Applicant Onboarding & KYC Data Extraction
Users upload KYC documents against the SCF Lead
System validates document type and format
Documents are sent to a KYC extraction service (OCR-based extraction)
Extracted data is received and mapped to applicant fields
Applicant profile is auto-filled with extracted values
Exception handling:
If extraction fails, manual entry and correction are allowed
Re-upload and re-trigger supported
Compliance & Structure:
Secure handling of uploaded KYC documents
Audit logging for extraction and manual overrides
RBI-compliant field structures using linked master data
Applicant Name Matching for KYC Verification
Compares the applicant's name with different KYC documents
Supports detection of mismatches across different documents
Generates match status: Full / Partial / Fail
Stores results against SCF Lead
Controls:
If Fail, manual review required
Mandatory remarks for manual overrides
Early-stage detection helps prevent downstream discrepancies
Credit Bureau Integration & Vendor APIs
User-initiated or stage-triggered bureau pull
Validates mandatory identifiers (PAN, DOB, etc.)
Sends bureau request and receives response
Parses and stores credit score and credit report
Updates credit pull status on SCF Leadscore
Controls:
If bureau API fails, status marked Failed
Authorized re-trigger supported
Vendor-specific integrations designed to be extensible
Configurable Workflow, Visibility & Notifications
Document requirements, validations, and workflow transitions configurable without code changes
Role-based visibility and permissions configurable based on operational roles
Notifications configurable at triggers through multiple channels (Email, SMS, messaging platforms)
ParsesEasy navigation to missing fields or documents reduces operational friction during stage transitions
Supply Chain LOS (Sub-Product) – Workflow & Business Impact
The stage-driven workflow ensures:
Standardized onboarding and verification
Clear audit trail and traceability
Reduced operational errors
Role-based controls for compliance
Easy navigation to missing fields or documents when validations fail
The stage-driven workflow ensures:
Looking to build or modernize a Loan Origination System tailored for NBFCs and Supply Chain Finance? See how our configurable, compliance-ready LOS platform helps NBFCs streamline onboarding, automate verification, and scale new lending products faster without heavy customization.
Explore our NBFC Solutions
Business Impact
Reduced manual effort and faster onboarding turnaround through OCR extraction
Higher data accuracy via automated document processing
Early detection of identity mismatch risk
Better compliance readiness with logging and workflow controls
Highly configurable platform adaptable to multiple SCF products without code changes
Why Frappe + Sanskar Technolab
Workflow, roles, audit logs, and extensibility are strong native features
Document management, visibility controls, and integrations are highly configurable
Sanskar Technolab delivered a flexible, stage-driven LOS aligned with NBFC compliance requirements
Frappe provides rapid development, maintainability, and configurability
Future Roadmap (Recommended Enhancements)
Product-specific workflow variations
Loan disbursement module
Repayment schedule and collections
Accounting and ledger posting integration
Post-sanction monitoring and risk alerts
Rule-based credit decisioning engine
