Delfin – National Loan Register
The National Loan Register was formed by the MFRC as a tool to assess a borrower’s ability to repay a loan.
The NCR took over the responsibility of the NLR which includes monitoring the data quality and the submission requirements. The NCR appointed an NLR Management Committee to oversee the day to day management of the NLR and to address the quality of NLR data and the management of the submissions to this register for the benefit of all registered credit providers. A reciprocity agreement is in place which means that all Credit Providers having the benefit of accessing and utilising the data on the NLR when making credit decisions need to submit their loan information in return.
The National Credit Act is very clear on the issue of Over-Indebtedness and Reckless Lending. It is the Credit Providers responsibility to ensure that the credit advanced will not place the borrower in a position of over-indebtedness. To avoid Reckless Lending, a Credit Provider should perform an Affordability Study and utilise the data received on an NLR Enquiry on each loan creation.
The information listed on the NLR includes full details on Micro Loans, Full Details on CPA Accounts, Debt Review, Judgments, Collections, Addresses, Telephone Numbers, Employment information as well as previous enquiries performed on the borrower.
- An Affordability Study performed on a client before a loan is granted not only protects your business against Reckless Lending, but prevents bad debt. By assessing a client’s ability to repay a loan, you are able to make smart credit granting decisions.
- Having your loans listed on the NLR means that other Credit Providers are able to see those loans when doing an Affordability Study on the same client.
- The NLR through Delfin is automatic – which means the loan details captured onto Delfin are sent directly to the NLR, this ensures the quality of the data as it be manipulated.
- The NLR through Delfin is charged per Enquiry and there is no monthly rental or the need to have additional systems (with extra rentals) in place in order to access the NLR.
A Credit Score is a tool used to assist in the credit granting decision process by taking positive and negative information from the NLR Report and calculating a score which would determine the risk.We have incorporated the score into Delfin by attaching it to the different loan types. In the Loan Type Set Up you can insert the acceptable score based on your business model and should score not match the requirement that loan type will not be available when creating a loan. This means that staff will not be able to grant loans to consumers who do not meet the scoring requirements. Each loan type can have a different score as smaller loans might be less of a risk factor.
- NLR Enquiry : R 4.52 Excl. Vat
- NLR + Scoring Enquiry : R 6.60 Excl. Vat