Money lending software for small lenders in India
Money lending software is a tool that records every loan a lending business issues, calculates the EMI and interest automatically, tracks each repayment against the right loan, and keeps the cashbook and profit-and-loss accounts up to date as money moves. It replaces the paper notebook or Excel sheet most small lenders start with. For a lender running daily- or monthly-collection loans in India, the features that matter are automatic EMI maths, daily collection cycles, a field collection-agent workflow, borrower-wise ledgers and receipts, and a register of the lender's own borrowed capital. MicroByz provides these for ₹6,999 per year per lending business, with no per-user fee.
Updated 27 October 2026
What does money lending software actually do?
A lending business has two books that must always agree: what each borrower owes, and where the cash is. Money lending software exists to keep those two books in agreement without anyone recalculating them by hand. In practice that means five jobs:
- Loan creation. Record the principal, interest rate, tenure and collection cycle once, and let the software derive the EMI and the repayment schedule.
- Repayment capture. Record each payment against the specific loan, so the outstanding balance, overdue amount and last collection date update themselves.
- Cash position. Post disbursements, collections, income and expenses to a daily cashbook, so the closing balance is a fact rather than an estimate.
- Borrower transparency. Produce a borrower-wise ledger and a receipt, so a borrower can see what they have paid and what remains.
- Profitability. Separate interest earned from principal recovered, so the monthly profit-and-loss statement reflects what the business actually made.
Who needs money lending software?
| Type of lender | What usually breaks first |
|---|---|
| Private money lender | Interest recalculation after a partial or late payment |
| Daily-finance operator | Reconciling what each field agent collected against what reached the owner |
| Credit co-operative society | Member-wise ledgers and the monthly statement to the committee |
| Small microfinance institution (MFI) | Portfolio health — which loans are overdue, and by how much |
| Chit or finance company | Keeping the firm's own borrowings and interest obligations separate from the lending book |
| Self-help group (SHG) financier | Group-level collection with individual repayment history |
Does money lending software calculate EMI and interest automatically?
It should, and this is the single feature worth checking before anything else. In MicroByz you set the loan amount, the interest rate and the tenure, choose a daily or monthly collection cycle, and the EMI is calculated for you. As each repayment is recorded, the outstanding balance, the overdue amount and the loan's status move on their own. Nobody maintains a schedule by hand, and the number the owner sees on a report is the same number the agent sees on a phone.
Can field collection agents use it?
Yes, and for most Indian lenders this is the deciding feature. Cash is collected in the field by someone other than the owner, which means the software has to model trust rather than assume it. In MicroByz an agent records a collection on their phone, it arrives as a pending entry, and the owner approves or rejects it. Only on approval does it become a ledger entry. Every step keeps an audit trail, so a disputed collection can be traced to the person and the minute.
The companion mobile app also works offline. Agents in areas with no usable mobile data can record collections all day and have them sync when a signal returns.
What does money lending software cost in India?
Pricing in this category splits sharply by the size of lender being sold to. Enterprise core-lending and microfinance platforms are sold to banks, NBFCs and MFIs at scale, priced per seat or per loan account, quoted after a sales conversation, and usually come with an implementation project. Tools aimed at small lenders are priced as a flat subscription.
MicroByz is ₹6,999 per year for one lending business, with every feature included and no charge per user. There is no setup fee and no card required to open an account. One login can run more than one lending business and switch between them, each with its own borrowers, loans and books.
What to check before you choose
- Does it support your collection cycle — daily, weekly or monthly — as a built-in option rather than a customisation?
- Can an agent's collection be approved by the owner before it hits the ledger?
- Does it track the capital you borrowed to lend, not just the loans you issued?
- Can you produce a borrower ledger and receipt without exporting to a spreadsheet first?
- Is the price per business or per user? Per-user pricing punishes you for adding agents.
- Does it work on a cheap Android phone, which is what field staff actually carry?
If you are weighing specific products, the comparison of loan management software for small Indian lenders sets out which tools fit which size of lender. If you are currently running the business on a spreadsheet, the Excel alternative for money lenders covers what breaks and when. For daily-finance lending specifically, see daily collection loan software.
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