5 Must-Have Loan Management Metrics

5 Must-Have Loan Management Metrics

5 Must-Have Loan Management Metrics

In the realm of financial prowess, loan management metrics reign supreme, offering invaluable insights into the health and performance of your lending portfolio. These metrics act as your compass, guiding you through the treacherous seas of risk and reward.

  1. Default Rate: The harbinger of doom, the default rate looms like a dark cloud, threatening the stability of your loan portfolio. It is the grim reaper of unpaid debts, a stark reminder of the perils of lending. Track it closely, for it is the canary in the coal mine, warning of impending financial storms.

  2. Delinquency Rate: The delinquency rate, a close cousin to the default rate, measures the tardiness of your borrowers. It is the ticking time bomb, counting down the days until default. Monitor it diligently, for it is a harbinger of potential loan losses.

  3. Loan-to-Value (LTV) Ratio: The LTV ratio, a guardian of prudence, ensures that your lending practices remain grounded in reality. It is the gatekeeper, preventing you from venturing into the realm of excessive risk. Keep a watchful eye on it, for it is the sentinel of financial stability.

  4. Debt-to-Income (DTI) Ratio: The DTI ratio, a sentinel of affordability, assesses the borrower’s ability to repay their loan. It is the gatekeeper, ensuring that borrowers are not overburdened by debt. Scrutinize it meticulously, for it is the guardian of responsible lending.

  5. Net Interest Margin (NIM): The NIM, a beacon of profitability, illuminates the difference between your lending revenue and your borrowing costs. It is the lifeblood of your lending business, the engine that drives your financial success. Monitor it assiduously, for it is the compass that guides you towards financial prosperity.

These metrics, like the stars in the night sky, illuminate the path to a thriving lending portfolio. Embrace them, for they are the key to unlocking the secrets of loan management success.

Schedule a demo from Fundingo today by clicking here: https://www.fundingo.com/contact-us/ and see how we can help you unlock the full potential of your loan portfolio. Or call us directly toll-free at (877) 227-7271 to speak to one of our loan management experts.