How to use RootFi OS

Step 1: Create Lender (One-time)

• Use our API or upload your own data to Create a Lender.

• This allows the RootFi OS system to track your repayment schedules, revenue and FLDG with that particular lending partner.

• Configure all the information and requirements related to a specific Lending Partner.

Step 2: Create Product (One-time)

• Use our API or upload your own data to Create a Product

• Your product acts as a general template for the loan agreement provided to your borrowers.

• Configure the structure, and all the details relating to a specific Product (One Time Loan, Credit Line, etc.)

• Will include fields such as - Interest Type, Fees, Tenure, Grace period, etc.

• As you later create individual loan accounts in step 4, you can set account-specific details such as credit limits or interest rates, which may vary from account to account based on your risk-based pricing model.

• Assign unique Product ID

Step 3: Create Borrowers (Ongoing)

• Add all data linked to a specific end-user or simply provide a unique borrower ID.

• Data can include - Borrower Info (First name, Last name, Gender, etc.), KYC info (PAN and Aadhaar verification, etc.), and Bank Account Information.

Step 4: Create Loan Accounts (Ongoing)

• Create a record of a new loan for a specific end user by calling the Lender ID, Product ID, and Borrower ID.

• Other fields includeLoan amount, Interest rate, First EMI date, and Fees.

Step 5: Line Items and Account Activity (Ongoing)

• Line items include - Payments, Late Fee, Processing Fee, Drawdowns, Excess Payment

• Track repayments via PG webhooks or call our API's

• View and manage the repayment schedule relating to a specific Loan ID.

Step 6: Generate Reports (Periodic)

• Automatically generate custom reports for repayments, reconciliation, etc.

• Select all the required fields and create a template for each report.

• As repayments start to flow in, the system will cross-reference the details of each payment with the associated repayment schedule, and execute the required calculations.

• All this data is then stored and managed in a way that allows your reports to be auto-generated in real time.

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More Detail Behind Each Step

Configuring your Lender

The Create Lender call is where you define the attributes related to your lending partner. What is your FLDG with the Lender, what is the total deposit placed with this lender? What is the hurdle rate that the lender requires, and what is their share of the fees?

This call allows the RootFi system to calculate your revenue, and track changes to your FLDG reserve account with each lender.

Configuring your product

The Create Product call is where you define the core structure behind your product. Is it a Revolving Credit Line, is it an Installment Loan, or is it some other complex lending structure? Are you running on weekly cycles? Monthly cycles?

You can see some examples of out-of-the-box configurations for simple products in our Product Configuration Section. You can also get a detailed breakdown of how each possible parameter in the product configuration works in our Postman Collection.

Configuring Each Borrower & Account

This is generally the output of your decision engine and origination system. After you have approved a borrower, you can configure a customer account for them. Configuring a borrower is very straightforward -- simply populate the data fields you would like to include in RootFi OS (first_name, last_name, phone_number, BorrowerID). This information is important to help in servicing the borrower.

Once you've created a borrower, you can create an account and assign the borrower.

Note: The parameters in the Create Account API call is product_id and Lender_id -- here, you'll pass the ID of a product and lender created in steps 1 & 2. This lets RootFi know to enroll the account into its respective product and lender inheriting their core qualities.

You can also override certain default fields that are set for the product and lender. For example, if you want to onboard a borrower with a lower-than-average interest rate due to their strong credit, you can set their interest rate when creating the account.

You can get a detailed breakdown of how each possible parameter in account configuration works in our Postman Collection.

Sending line items

This is a fairly straightforward process as well if you check out our Line Item Documentation. On an ongoing basis, as any activity occurs for the account (a fee, a repayment, etc), you can call the corresponding endpoint. RootFI OS can also handle CSV uplaods for adding repayments in bulk.

You can further automate RootFi's processing of line_items by integrating your issuer-processor and payment-processor. For more details on how to integrate 3-party processors please contact your RootFi account manager.