Systematising On-lending Security Interest

Hypothecated Loan Receivables and Securitised Assets Monitoring System

Announcements

2025/October

GFF 2025

truHypothesys Risk Solutions was selected to present at the Early-Stage Investment Pitches at Global Fintech Fest 2025, organised by The Fintech Meetup. Represented by Co-founders - Sameera and Binny - truHypothesys Risk Solutions got an opportunity to showcase how it is addressing a critical challenge in the lending ecosystem: the non-traceability of security interest in exposure to on-lending NBFCs.

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why you need our risk solution

With the alarmingly lack of robust systems to trace loan receivables hypothecated and loan assets securitised or assigned by Non-Banking Financial Companies (NBFCs), the financial sector is left with a critical oversight that leaves the door wide open for potential fraud and misrepresentation

“With the alarmingly lack of robust systems to trace loan receivables hypothecated and loan assets securitised or assigned by Non-Banking Financial Companies (NBFCs), the financial sector is left with a critical oversight that leaves the door wide open for potential fraud and misrepresentation”

Key Concerns

Compromised Due Diligence

Lack of transparency makes it nearly impossible to detect inconsistencies or fraudulent activities committed by on-lending NBFCs. Banks and other lenders are at risk of unknowingly accepting pseudo-security or compromised loan assets.

Hidden Financial Instabilities

This systemic weakness may conceal deeper, more insidious problems within on-lending NBFCs, such as artificially inflated loan books and exaggerated book-debt figures.

Ripple Effects

The consequences of these vulnerabilities extend far beyond individual transactions and can threaten the stability of financial institutions and trigger wider market disruptions.

Regulatory Blind Spots

Current oversight mechanisms are inadequate to address such issues, leaving regulators and investors in the dark about the true state of NBFC assets and liabilities.

Erosion of Trust

As instances of fraud or misrepresentation come to light, they undermine confidence in the entire NBFC sector, leading to credit crunch or market instability.

Risk of Fraud in Loan Portfolios is Real

Can You Afford Not to Act?

You need a rigorous, standardised tracing systems for loan receivables and securitised assets that offers enhanced due diligence processes that can detect inconsistencies and potential fraud and allows greater transparency and reporting requirements for NBFCs including improved regulatory frameworks to close existing loopholes.

can decisively protect your institutions, your investors, and
the broader economy from such hidden threats.
Check out our products customised to suit your requirements:

Our Solutions

Customised Risk Solutions for Every Institution

solution 1

Risk Solution

Monitor hypothecated loan receivables &
securitised loan assets

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solution 2

Precision-Driven Pool
Shortlisting Solution

Risk assess underlying pool loans. Instant
rule-based shortlisting.

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solution 3

MarketPlace for
Originators & Investors

Effortlessly connect, create, and finalise loan pools. Leverage advanced risk assessment to make data-driven decisions for seamless originator-investor collaborations.

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FAQs

Why is monitoring hypothecated loan receivables crucial?

Monitoring hypothecated loan receivables is critical to:

  • Ensure exclusivity of charge, preventing duplication by on-lending NBFCs
  • Address the lack of a central automated tracking system for hypothecated receivables
  • Provide a more reliable alternative to CA certificates, which have limited access to holistic data

The risks associated with loan assets include:

  • Potential for NBFCs to re-sell or re-hypothecate already securitised portfolios
  • Lack of automated verification methods to detect such fraudulent transactions

Data Security concerns are addressed through:

  • Flexible PII handling: skip, encrypt, or mask as per your preference
  • Segregated data storage for each NBFC and investor
  • Use of loan account numbers only for internal processing
  • Redaction of confidential information from Scrub files

Credibility can be ensured by:

  • Cross-matching with credit information company reports
  • Immediate red-flagging of discrepancies
  • Yes, by detecting issues like fund diversion or non-utilization before they lead to defaults
  • Aligns with RBI instructions for enhanced credit risk management and internal controls
  • Development of a universal repository for hypothecated and securitised assets
  • Increased participation leads to more data, better cross-referencing, and improved risk management

Our solution addresses these critical issues, providing you with unparalleled risk management capabilities. Ready to secure your assets and streamline your operations? Let’s discuss how we can tailor our solution to your needs.