Yes. PayNow and SGD are built into a Singapore deployment as part of the implementation and tested by your team before go-live.
Singapore · Loan management system
Loan management system for Singapore banks and lenders
Every active loan, its schedule, its balance and its arrears in one place, with each repayment posted once, the AI banking agent watching the accounts and every report built from the same entries.
In brief
What a loan management system does in Singapore
A loan management system (LMS) runs the loan after it is booked: the repayment schedule, payments received, balances, arrears, collections, monitoring and the statements the borrower sees. It is sometimes called loan servicing software.
For a bank or finance company, the LMS is where a performing loan starts to show stress. Covenant Desk includes its own core banking engine for lending (loan accounts, ledger and postings, interest and fees, repayment and collections, disbursement) and integrates with the core you already run. The AI banking agent monitors accounts and raises early-warning flags for the relationship team to review. SGD, PayNow and Singapore reporting rules are built into your deployment.
Singapore
What a Singapore LMS has to get right
- 01
Interest and fees calculated correctly
Interest, late interest and fees are computed on the base your product and licence require, month by month, and kept as separate, dated entries the borrower can see on a statement.
- 02
Cost ceilings tracked across the life of the loan
Where a product carries a total-cost ceiling, the running total is kept for each loan and charges stop at the limit.
- 03
Repayments posted once
A payment received by PayNow, GIRO or cash is posted once, and the schedule, balance and reports all update from that one entry.
- 04
Arrears ranked by what matters
An ageing report by days past due, with the amount in each band, so collections starts with the loans that matter most.
- 05
Monitoring that raises its hand
The AI banking agent watches accounts and covenants and raises early-warning flags, each with the evidence behind it.
- 06
A record of every contact
Who called the borrower, when and what was agreed, attached to the loan rather than kept in someone's phone.
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
Singapore rules, currency and payments
Singapore'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 any LMS vendor in Singapore
- 01
Show us the ledger
Ask to see loan accounts, postings, interest and fees, and how they reconcile to your general ledger.
- 02
How is a payment matched?
Every payment should carry a reference that ties it to the right loan, and staff should confirm it against the bank.
- 03
What reports come from the postings?
Collections by day and method, ageing and income should come from the same entries, not a separate spreadsheet.
- 04
Can borrowers see their own balance?
A borrower app with the balance, next due date and schedule cuts the calls your staff take.
- 05
Can we migrate in phases?
Ask how existing loans, schedules and payment history move across, and who checks the result.
- 06
What does the audit trail show?
Every posting, change and lookup, with who did it and when, in a log that shows if anything was altered.
FAQ
Questions banks and lenders ask
Yes. The schedule, posting and arrears engine is configured to your products and the rules that apply to your licence, and checked against worked examples in acceptance testing.
No. Covenant Desk can take loans booked elsewhere and integrates with your existing core through APIs or file exchange. Most institutions run both on it, because a loan that starts in the same system needs no re-keying.
You do. Each customer has a dedicated instance, and at the end of the contract you receive a full export and written confirmation of deletion.
Sources
Official sources, checked 29 October 2026
- Ministry of Law, Registry of Moneylenders: guide to borrowing from licensed moneylenders (interest, late interest, fee and total-cost caps)
- Ministry of Law, Registry of Moneylenders
- Personal Data Protection Commission Singapore
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 Singapore
See it on one of your own loans.
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