Lesson 1 · Foundations · Both · 12 min
Retail Lending Lifecycle: LOS vs LMS
Separate origination from servicing — what lives in LOS, what lives in LMS, and how handoff failures create real P&L leaks.
Objectives
- ▸Map stages from lead to closure for a retail loan
- ▸Define LOS vs LMS responsibilities cleanly
- ▸List critical handoff data between systems
- ▸Spot common product gaps at the LOS→LMS boundary
Retail lending moves through: acquisition → KYC/consent → application capture → bureau & underwriting → sanction/offer → agreement e-sign → disbursement → servicing (EMI, charges) → collections/restructuring → closure/foreclosure. Digital lenders compress stages; regulated banks add committee and compliance gates. Every stage needs an owner, SLA, and auditable state.
- Pre-sanction: eligibility, documents, verification
- Sanction: limit, rate, tenor, covenants, deviations
- Post-sanction: disbursement conditions precedent
- Post-disbursement: schedule, collections, NPA, write-off
Key terms
LOSLMSSanctionDisbursementConditions precedentDrawdownMaker-checkerFacility vs loan