Yes. Other markets are dedicated deployments with local currency, payments and rules built into the implementation and tested by your team before go-live.
Asia · Loan management system
Loan management system for banks and lenders in Asia
Every loan after booking, on one record: the schedule, each payment, the balance, arrears, collections, and for business loans the covenants and collateral behind it, with the AI banking agent watching the accounts.
In brief
What a loan management system does in Asia
A loan management system (LMS) runs the loan after booking. For retail and mortgage books that means schedules, payments, arrears and collections. For SME and commercial books it also means covenants, collateral and the early signs that a performing borrower is in trouble.
Banks and lenders in Asia usually run these in separate places: a ledger, a collections spreadsheet, a covenant tracker in Excel. Covenant Desk keeps them on the loan's own record, on its own core banking engine for lending or beside the core you already run. The AI banking agent monitors accounts and raises early-warning flags. Payment rails such as FPS, PayNow, DuitNow and InstaPay and each market's currency and rules are built into your deployment.
Asia
What a bank or lender in Asia needs from an LMS
- 01
Local rate and fee rules after disbursement
Late interest, penalty caps and total-cost ceilings differ by market and keep applying after booking. The LMS carries them for each loan.
- 02
The local payment rail
Repayments by each market's instant-payment rail to your own account, with a reference that ties each payment to its loan.
- 03
Arrears ranked by what matters
Ageing by days past due, with amounts, so collections starts in the right place.
- 04
Covenants and collateral for business loans
Covenants recorded and tested, breaches and waivers logged, collateral with haircuts and loan-to-value.
- 05
Early-warning monitoring
The AI banking agent watches accounts and raises flags with the evidence behind them for your relationship team to review.
- 06
A log an auditor can trust
Every posting and change in an append-only, hash-chained log.
Covenant Desk
How Covenant Desk covers it
All of this is available, built to your operation and delivered as part of the implementation.
- 01
Schedules from the approved terms
Each loan carries its own repayment schedule, with paid and upcoming instalments, principal and interest balances and the next due date.
- 02
Repayments posted once
Staff post a repayment, or confirm a borrower's payment against the bank, and the schedule, balance and reports update from that one entry.
- 03
Arrears ranked
An ageing report by 1-30, 31-60, 61-90 and over 90 days past due, with the amount in each band and Excel export.
- 04
Borrower app
Borrowers see their balance, next due date and every instalment, and pay to your own account with a reference that ties the payment to the loan.
- 05
Covenants, collateral and monitoring
For business loans: covenants recorded and tested, breaches and waivers logged, collateral with haircuts and loan-to-value. The AI banking agent monitors accounts and raises early-warning flags.
- 06
Core banking engine
Covenant Desk includes its own core banking engine for lending: loan accounts, ledger and postings, interest and fees, repayment and collections, and disbursement. It also integrates with the core banking systems you already run, through APIs or file exchange, so you can adopt it as the lending core or run it beside your existing core.
- 07
Asia rules, currency and payments
Each market's rate and fee rules, currency, payment rail and document templates are built into your deployment as part of the implementation, and your team tests them on your own cases before go-live.
Evaluation
Questions to ask an LMS vendor in Asia
- 01
Which payment rails are connected?
And how are they built into your rollout?
- 02
Show a late-interest calculation
On the base your market requires.
- 03
How are covenants tested?
And where are breaches and waivers recorded?
- 04
Can we migrate in phases?
Existing loans, schedules and payment history.
- 05
Who can see what?
Roles, masked identifiers and a log of every lookup.
- 06
How do we leave?
Full export and written confirmation of deletion.
FAQ
Questions banks and lenders ask
Yes. Covenants are recorded and tested, with breaches and waivers logged, and the AI banking agent raises early-warning flags on the accounts.
Yes. The borrower app shows the balance, next due date and schedule, and secure messages with your team.
You do, on a dedicated instance, with a full export at the end of the contract.
Sources
Official sources, checked 29 October 2026
- Basel Committee on Banking Supervision: Principles for the Management of Credit Risk
- Ministry of Law, Registry of Moneylenders: guide to borrowing from licensed moneylenders (interest, late interest, fee and total-cost caps)
- Ministry of Housing and Local Government (KPKT), Malaysia: moneylending and pawnbroking
- BusinessWorld: SEC issues rules on interest rate cap for lending and financing companies (2 March 2022)
Rules change; check the current text with the regulator and your adviser. This page is not legal advice. Covenant Desk is software: it does not provide loans or make lending decisions.
Related
More for banks and lenders in Asia
- Loan origination system for banks and lenders in Asia
- The AI lending system for banks across Asia
- Custom lending software, built around your process and integrated with your systems
- An AI lending system that runs beside the core banking system you already have
- Deployment, data residency and AI governance, answered before your vendor review asks
- AI lending agents for banks, by role, with credit officers approving every decision
- AI lending system across Asia
- Loan origination system, Hong Kong
- Loan management system, Hong Kong
See it on one of your own loans.
We set up a personalised demo around your own products and workflows, then your team tries it before you decide.
Book a personalised demo