---
title: "Introduction to Frappe Lending"
space: "Lending"
url: "https://docs.frappe.io/lending/introduction"
updated: "2026-01-07"
---

## What is Frappe Lending?

Frappe Lending is a comprehensive Loan Management System (LMS) designed to streamline and automate the entire loan lifecycle, from loan origination to closure. Built on ERPNext and Frappe Framework, an open-source low-code platform, it provides financial institutions, NBFCs, and lenders with the tools they need to efficiently manage loans while ensuring compliance and reducing operational overhead.

![Frappe Lending](/files/Lending%20Dashborad.png)

## Why Frappe Lending?

1. 100% open source & API-first – Everything is open source and is end to end REST API compatible.
2. Scalable & trusted – Designed for high-volume lending.
3. Complete loan & financial management – Manage loan origination, disbursements, repayments, and accounting—all in one place.
4. Built-in compliance & risk monitoring – Automated DPD tracking, NPA classification, and regulatory reporting ensure compliance without manual effort.
5. Accounting, billing & taxation - Integrated ledgers, invoicing, and tax handling keep your financials accurate and audit-ready.
6. Custom workflows & role-based access - Define approval steps, automate processes, and control access with role-based permissions, ensuring smooth and secure operations.

## Key Features

1. Loan Booking
2. Portfolio Management
3. Collateral Management
4. Lending Models
5. Loan Accounting
6. Collection Management
7. Co-Lending

## Under the Hood

1. **ERPNext**: ERPNext is business management software that helps companies stay on top of their operations, whether it’s tracking inventory, managing finances, handling projects, or keeping customers happy.
2. **Frappe Framework**: A full-stack web application framework written in Python and Javascript. The framework provides a robust foundation for building web applications, including a database abstraction layer, user authentication, and a REST API.

## Community

GitHub - Contribute to Frappe Lending and explore its open-source code, issues, and discussions