Providing borrowers with flexibility and control over their loan repayment is essential for building long-term customer relationships, and that is succinctly what the loan liquidation feature in Configure, a core banking software powered by Evolve Credit, does. The loan liquidation feature in Configure empowers borrowers to proactively manage their loan obligations while offering lenders streamlined processes for handling early loan settlements.
Research indicates that borrowers value flexibility and control over their loan repayment options. A study by the Financial Consumer Agency of Canada (FCAC) found that 75% of borrowers prefer to have the option to pay off their loans early. Full loan liquidation in Configure meets this demand by offering a straightforward and convenient way for lenders to cater to this growing demand, potentially increasing customer satisfaction and loyalty.
Moreover, the ability to liquidate loans can have significant financial benefits for borrowers. A report from the Consumer Financial Protection Bureau (CFPB) indicates that borrowers who pay off their loans early can save an average of 15% on total interest charges. This immensely benefits the borrower and can lead to improved repayment rates for lenders, creating a win-win scenario.
Purpose: The full loan liquidation feature enables borrowers to pay off their loans by covering the current principal and interest, with subsequent repayments requiring only the principal amount. This flexibility can lead to substantial savings for borrowers and improved cash flow management for lenders.
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Implementing full loan liquidation options can have far-reaching benefits. A study by Deloitte found that financial institutions offering flexible repayment options, including early loan liquidation, saw a 22% increase in customer retention rates. Additionally, these institutions reported a 17% reduction in loan defaults, highlighting the positive impact on both customer satisfaction and financial stability.
At Evolve Credit, we’re committed to providing innovative solutions that drive the lending industry forward. The loan liquidation feature is just one example of how we’re working to create a more flexible, efficient, and customer-centric lending ecosystem.