Frappe Lending
Frappe Lending is an open-source loan management system for financial institutions, NBFCs, and lenders.
What Frappe Lending is
Frappe Lending is an open-source loan management system for financial institutions, NBFCs, and lenders. It brings loan origination, disbursements, repayments, and accounting into one system, with support for home loans, business credit, consumer loans, term loans, and lines of credit. Users can define loan products with interest rates and repayment schedules, and track linked collateral, guarantees, and securities. The system describes automated days-past-due tracking, non-performing asset classification, and regulatory reporting, alongside integrated ledgers, invoicing, and tax handling. It also supports co-lending, loan transfers, custom workflows, and role-based permissions. Frappe describes the product as customizable and API-first, with end-to-end REST API compatibility. Cloud access has a 14-day trial, after which a Frappe Cloud plan is required. Frappe provides bug-fix support through tickets; functional support is excluded from Product Warranty.
Good
- Covers loan origination through repayment and accounting.
- Tracks collateral, guarantees, and securities.
- Includes co-lending and loan transfer capabilities.
- Free self-hosted plan under GPL-3.0.
- Cloud sites include managed upgrades and backups.
Watch out
- Cloud trial lasts 14 days.
- Continued cloud use requires a Frappe Cloud plan.
- Functional support is excluded from Product Warranty.
Who it suits
Frappe Lending suits financial institutions, NBFCs, and lenders that need to manage lending operations in one system. Its API, workflows, and permissions may suit teams connecting applications or configuring lending processes.
Verdict
Frappe Lending combines core loan operations with accounting, collateral tracking, and risk-related functions. Teams should weigh its free self-hosted option against the cloud plan requirement and the distinction between bug-fix and functional support.
Plans and prices
From Frappe Lending's own pricing page, checked 15 Oct 2026.
| Plan | Price | What it gives you |
|---|---|---|
| Self-host | Free | own server · installation scripts · GPL-3.0 licensed |
| Self-hosted | Free | Self-host using installation scripts · GPL-3.0 licensed |
| Frappe Cloud Sites | $5 a month | single site · shared servers · managed upgrades and backups · no per-user billing · onwards /mo |
| Frappe Cloud Servers - Hetzner | $20 a month | virtual machine · multiple sites and benches · shared or dedicated instances · unified or separate app and database · onwards /mo |
| Frappe Cloud Servers - Dedicated | $60 a month | dedicated server isolation · snapshots · autoscaling · global data-centre locations · onwards /mo |
The facts
Each one read from Frappe Lending's own pages, with the date it was checked.
What it does
- Access controls
- Frappe Lending supports custom workflows and role-based permissions.checked 28 Sep 2026
- Accounting
- Frappe Lending automates disbursement, accrual, repayment, penalty and suspense entries and provides trial-balance, balance-sheet, profit-and-loss and loan-ledger reports.checked 15 Oct 2026
- Accounting and tax
- Frappe Lending describes integrated ledgers, invoicing, and tax handling as built-in capabilities.checked 28 Sep 2026
- API
- The product is described as end-to-end REST API compatible, and its API documentation shows POST endpoints for invoices, repayments and charge calculations.checked 15 Oct 2026
- API and customization
- The product is described as API-first and customizable, and the documentation says it is end-to-end REST API compatible.checked 28 Sep 2026
- API example
- The documented charge workflow uses POST /api/resource/Sales Invoice and POST /api/method/lending.loan_management.doctype.loan_repayment.loan_repayment.calculate_amounts.checked 15 Oct 2026
- Bug complaint
- A forum report described a fully repaid loan still showing the original debt when the user tried to close it.checked 15 Oct 2026
- Co-lending
- Co-lending workflows configure lender contributions, interest splits, repayment allocation and accounting entries.checked 15 Oct 2026
- Collateral
- Collateral can be categorized, assigned to loans, released, price-tracked and monitored for shortfalls.checked 15 Oct 2026
- Documentation complaint
- Another forum user said parts of the lending documentation were missing and asked how to structure an employee loan.checked 15 Oct 2026
- Documentation depth
- The documentation includes introduction, feature guides, migration instructions and endpoint-level API examples.checked 15 Oct 2026
- Extensibility
- Frappe Framework supplies Python and JavaScript application development, authentication, database abstractions, REST APIs, workflows and server scripts.checked 15 Oct 2026
- Implementation
- Frappe recommends contacting an official partner for consultation and implementation support.checked 28 Sep 2026
- Integrations
- The eKYC India app provides two-way Digio integration for Aadhaar identity checks, electronic signatures and webhook status updates.checked 15 Oct 2026
- Licence
- The Frappe Cloud Marketplace identifies the Lending code as GNU GPL version 3 and attributes copyright to Frappe Technologies and contributors.checked 15 Oct 2026
- Limit: technical learning curve
- Gartner reviewers repeatedly mention strenuous setup, developer dependence for customization, an outdated-feeling design and a steep learning curve.checked 15 Oct 2026
- Loan-against-securities
- For securities-backed lending, the system applies haircuts, calculates drawing power, checks loan-to-value daily and blocks drawdowns during open shortfalls.checked 15 Oct 2026
- Loan operations
- Workflows cover accounts, disbursements, scheduled and advance repayments, settlements, write-offs and refunds.checked 15 Oct 2026
- Loan products
- Administrators can define multiple loan products with configurable categories, rates, terms, fees, repayment rules and moratoriums.checked 15 Oct 2026
- Loan transfers
- Loans can be transferred between branches while preserving financial and accounting records.checked 15 Oct 2026
Money
- Billing and taxation
- Billing features automate charge application, invoicing, interest calculations and tax handling.checked 15 Oct 2026
The company
- Company founded
- Frappe says it was founded in 2008 after its founder built an ERP system for a family business.checked 15 Oct 2026
- Company headquarters and size
- LinkedIn lists Frappe as headquartered in Mumbai, India, with 51–200 employees and a 2008 founding year.checked 15 Oct 2026
- Company ownership
- Frappe says it received backing from Zerodha in 2020, while Crunchbase lists it as a private, for-profit company.checked 15 Oct 2026
The full review of Frappe Lending
Frappe Lending is an open-source system for managing lending from origination to closure. It is best suited to financial institutions, NBFCs and lenders that want configurable loan operations and API access. Its breadth is compelling, but teams must weigh self-hosting work against the paid Frappe Cloud option and the limits of bug-fix-only product warranty support.
Overview
Frappe Lending brings loan origination, disbursement, repayment and accounting together, covering home loans, business credit, consumer loans, term loans and lines of credit. That single-system scope can suit lenders looking to coordinate servicing with accounting rather than spread those operations across separate tools.
Teams can define loan products with interest rates and repayment schedules, and track collateral, guarantees and securities against loans. Automated days-past-due tracking, non-performing asset classification and regulatory reporting extend its remit into risk and compliance. Co-lending and loan transfers are also supported, making the product relevant beyond straightforward loan servicing.
Key features
Operations, accounting and controls
Integrated ledgers, invoicing and tax handling connect loan activity to accounting. Custom workflows and role-based permissions let institutions shape processes and access around their operations; these controls matter in organizations where lending work is divided among teams.
API and customization
The system is API-first and end-to-end REST API compatible. A Zerodha testimonial describes connecting customer-facing apps through Frappe REST APIs, a useful signal for teams that want lending operations connected to their own customer experience. Customization and API access are strengths for technically capable institutions, but teams needing help with implementation should plan to consult an official partner.
Support
Frappe engineers handle bug-fix support through support-portal tickets. Functional support is outside Product Warranty, so teams that need assistance with business processes or configuration should not treat the warranty as an implementation service.
Pricing
Frappe Lending uses a freemium model, with a free self-hosted option and Frappe Cloud Sites at $5 a month (billed onwards /mo). The free plan is GPL-3.0 licensed and is self-hosted using installation scripts. It avoids a subscription, but places deployment and ongoing hosting with the institution.
Frappe Cloud Sites costs $5 a month (billed onwards /mo) and includes managed upgrades and backups on shared servers, with no per-user pricing. That is the lower-effort route for teams willing to use Frappe Cloud; shared servers may not suit every institution's deployment requirements. Frappe Cloud provides 14 days of free access to Frappe Lending, after which a Frappe Cloud plan is required to continue using the site.
Platforms
Frappe Lending is available on the web, through an API and as self-hosted software. The combination gives institutions a choice between managing their own deployment and using Frappe Cloud. API access and interest calculation are supported across both deployment options, and payment scheduling is supported.
Who it's for
Financial institutions, NBFCs and other lenders are the intended audience. It is a stronger fit for teams that need loan lifecycle management alongside accounting, collateral tracking and risk-related functions, and have the technical or partner support to implement a customizable system. Smaller teams seeking functional guidance included with product support, or an entirely managed deployment without a cloud plan, should weigh other options.
Pros and cons
- Pros: Origination, disbursement, repayment and accounting share one system, reducing the need to coordinate those core operations across separate products.
- Pros: Collateral tracking, days-past-due monitoring, NPA classification and regulatory reporting address risk-related work alongside servicing.
- Pros: Self-hosting is free and GPL-3.0 licensed, while the cloud plan has no per-user pricing.
- Cons: Self-hosting uses installation scripts, so the free option requires the institution to manage its own deployment.
- Cons: Continuing after the 14-day Frappe Cloud trial requires a cloud plan; the free self-hosted option is a distinct deployment route.
- Cons: Product Warranty covers bug-fix support, not functional support, and implementation consultation is recommended through an official partner.
Alternatives
Loan Management Software is the broader category for comparing loan platforms. Consider UnPay Loan Management System if a free sandbox with 15 products, 480 API endpoints and community support is the priority; its Enterprise plan uses a custom annual agreement.
Canopy is a paid web and API alternative with a custom commercial plan. Lokta may suit qualifying NBFCs seeking its ₹0 platform fee for 24 months; its Next 100 offer is for NBFCs with AUM up to ₹100 crore at enrolment and excludes pure-play microfinance NBFCs.
AFSVision is another paid option, with web, iOS and Android platforms. HES LoanBox may fit teams looking for a custom license with no per-user fees, though custom features cost extra. TurnKey Lender is a paid web option. Apache Fineract is an alternative when a free product is the priority. Finastra Loan IQ is a paid web option.
Verdict
Choose Frappe Lending if your institution needs broad loan operations, accounting and risk capabilities in a system that can be self-hosted and customized through APIs. The free GPL-3.0 deployment and no-per-user cloud pricing are practical advantages. Look elsewhere if you need functional support within the product warranty or want to avoid either self-management or a required cloud plan after the trial.
Getting started
- Open the Frappe Lending website
- Choose self-hosted installation scripts or Frappe Cloud Sites
- Use the 14-day Frappe Cloud access period if selecting cloud deployment
- Configure loan products, interest rates, and repayment schedules
- Set workflows and role-based permissions
- Contact an official partner for consultation and implementation support
Limits worth knowing
Self-hosted is free under GPL-3.0. Frappe Cloud access is free for 14 days; continued use then requires a Frappe Cloud plan starting at $5/mo, with no per-user pricing listed for Frappe Cloud Sites.
Questions
Is Frappe Lending open source?
Yes. The self-hosted plan is free and licensed under GPL-3.0.
How much does Frappe Cloud Sites cost?
Frappe Cloud Sites costs $5 a month, billed onwards /mo. The plan includes managed upgrades and backups on shared servers.
Does Frappe Lending offer a free trial?
Yes. Frappe Cloud provides 14 days of free access, after which a Frappe Cloud plan is required to continue using the site.
Which loan types are supported?
Listed types include home loans, business credit, consumer loans, term loans, and lines of credit.
Can it connect to other applications?
Yes. It provides API access, end-to-end REST API compatibility, and customizable integrations; a Zerodha testimonial describes connecting customer-facing apps through Frappe REST APIs.
What support is included?
Frappe engineers handle bug-fix support through support portal tickets. Functional support is excluded from Product Warranty.
Alternatives to Frappe Lending
- 1
Apache Fineract
Free planOpen sourceWebAPILinuxmacOS7.6Free plan - 2
Lokta
Free planWebAPILinuxSelf-hosted7.4Free plan - 3
UnPay Loan Management System
Free planAndroidiOSWebAPI6.7Free plan - 4
Shaw Systems Spectrum
WebAPI6.5$50,000 one-time - 5
AFSVision
AndroidiOSWebSelf-hosted6.3 - 6
Bryt
WebAPI6.3