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Loan has its own lifecycle that starts with its creation and goes through different recommendation and approval stages, and end when the load has been, for example,  paid off, rejected or cancelled. To make it easier to follow this cycle, loans are assigned statuses that changes as they are being processed. "Workflow" tab of the loan details provides an overview of the main statuses in the history of a specific loan.Image Removed

Image Added

This article provides description of the loan statuses in compliance with their internal status ID. This order .  The status ID field is provided for internal purposes but can be used by the customers to refer to a specific status in their communication with the company support.
The order of statues may not correspond the actual flow of the statuses . For variant of their actual change see the  Loan Status Flow.

...

Loans with all statuses are displayed on Customers Workplace

...

(see Loan Status Flow)


Status ID
Status name: displayed (system)
Status name (displayed)
Preconditions
Description
Workplaces where loans with this status are shown
Possible Status Change Actions
Comment
Typical Role(s)
0

Pre-Origination
(PreOrigination)

-

N/A
  • Loan Application
(LA)
  • is being created
by Customer or Originator
  • Customer logs-in or an account is created for the customer
  • Start page
(
  • Origination

  • Customer
)  
Origination
  • Originator
1Origination
(Origination

Initial customer details are gathered and Originator makes the initial decision about the LA

Origination
  • Cancel
  • Recommend for approval
3AutoProcessingAuto ProcessingThe LA has been recommended for approval and system is currently processing the loan (requesting Credit Bureau, checking corresponding Business Rules and Scorecard)

-

4WaitingForApprovalWaiting For ApprovalA final decision cannot be made automatically and should be made by the UnderwriterUnderwriting2ReprocessingReprocessingA loan was returned for reprocessing by the UnderwriterOrigination5ApprovedApproved

A final decision (system or manual) was to approve the loan.

Underwriting
Servicing

6RejectedRejectedThe final decision (system or manual) was to reject the loan.Underwriting
Archive 7ActiveActiveThe loan is
)
  • Customer created in the system
  • Basic customer and loan details are collected and entered into the system
  • Initial decision to recommend/not recommend the loan application for approval is being made
  • Origination
  • Recommend for approval
  • Cancel
  • Originator
  • Customer (only for cancelling)
12Collateral
(Collateral)
  • Loan application recommended for approval at the Origination Stage 

AND

  • Collateral evaluation is required for the credit product 
  • The loan's collateral is being added and evaluated
  • Decision to recommend/not recommend the loan application for approval is made
  • Collateral 
  • Recommend for approval
  • Return for reprocessing
  • Reject
  • Cancel
  • Collateral Manager
  • Customer (only for cancelling)
3Auto Processing
(AutoProcessing)
  • Loan application recommended for approval at the Origination Stage 

AND

  • If required, loan application recommended for approval at the Collateral stage
  • System is automatically processing the loan application in compliance with the credit product settings (Credit Bureau request, Business Rules and Scorecard checks)
  • Automatic decision to recommend/not recommend the loan application for approval is made 
    OR
    Automatic decision to approve the loan is made
  • Underwriting
    (the actions are performed at the background and their results are visible on the Underwriting workplace)
  • Automatically recommend for approval
  • Automatically Approve
  • Automatically reject 
  • Cancel
  • N/A (TurnKey Lender)
  • Customer (only for cancelling)
  • Underwriter (only for cancelling)
???Risk evaluation
(RiskEvaluation)
  • Two-step approval is required for the credit product

AND

  • Loan application passed all the required Auto Processing checks
  • Loan application is being pre-checked by an authorized Credit Manager
  • Decision to recommend/not recommend the loan application for approval is made
  • Risk Evaluation
  • Recommend for approval
  • Return for reprocessing
  • Reject
  • Cancel
  • Credit Manager
  • Customer (only for cancelling)
2Reprocessing
(Reprocessing)
  • Loan application returned for reprocessing
    (after Collateral or Risk Evaluation, or by an authorized Underwriter)
  • Basic customer details are edited or updated
  • Initial decision to recommend/not recommend the loan is confirmed or updated
  • Origination
  • Recommend for approval (repeatedly)
  • Cancel
Originator
4Waiting For Approval
(WaitingForApproval)
  • Manual approval is required for the credit product

AND

  • Loan passed all the required checks at Auto-processing

AND

  • If required, loan application is recommended for approval at the Risk Evaluation stage
  • Loan application is awaiting for the decision of an authorized Underwriter
  • Authorized Underwriter is taking the final decision on the application approval
  • Underwriting
  • Approve
  • Return for reprocessing 
  • Reject
  • Cancel
  • Underwriter
  • Customer (only for cancelling)
5Approved
(Approved)
  • Loan application was approved at the end of Auto Processing or Underwriting stage
  • Loan application is awaiting for disbursement
    BUT
  • It can still be rejected by an Authorized Underwriter 
  • Servicing
  • Underwriting
  • Initiate disbursement (Servicing)
  • Reject (Underwriting)
  • Cancel
  • Underwriter
  • Customer (only for cancelling)
6Rejected
(Rejected)
  • Loan application was rejected
    (as a result of Collateral or Risk evaluation; Auto Processing or authorized Underwriter's decision)
  • Processing of the loan application is on hold
    BUT
  • It can still be approved or sent for reprocessing by an authorized Underwriter
  • Loan application is added to the archive
  • Underwriting
  • Archive 
  • Sent for reprocessing
  • Approve

7

Active
(Active)


  • The loan was disbursed to the customer.

Servicing
Collateral (if collateral needs to be re-valuated) 

8PastDuePast Due
There is a past-due debt for this loan.

Servicing
Collection
Collateral (if collateral needs to be re-valuated) 



9Closed_RepaidRepaid
The loan is fully repaid and closed.Archive+
10Closed_WrittenOffWritten off
The loan was written-off by the system or manually and closed.Archive+
11RolloverRequestedRollover Requested
The customer requested to roll over the loan.Servicing
Collateral (if collateral needs to be re-valuated) 
not applicable starting from version 7.0
12CollateralCollateral
The loan's collateral needs to be added, evaluated, and approvedCollateral 
13DisbursementFailed Disbursement Failed 

Disbursement of the loan via a payment system is finished unsuccessfully.

Servicing



14DisbursementInProgressDisbursement in Progress
Disbursement of the loan via a payment system is currently processing.Servicing

15Closed_RestructuredRestructured
The loan is restructured and closed.Archive+not applicable starting from version 7.0
16P2P_GatheringInvestmentsGathering Investments
Not all required loan amount is funded

Servicing



17OfferConfirmationTO DO




18WaitingForCustomerSignatureSigning
The loan agreement is sent to the customer for signingUnderwriting


19Closed_AgreementDeclinedAgreement Declined
The borrower declined the loan  agreementArchive+
20Closed_AgreementExpiredAgreement Expired
The borrower didn't make a decision about the loan agreement during the Expiry Period DaysArchive+
21Closed_DeletedCustomer-
The loan is closed because the customer has been deleted.-+
22Closed_CanceledCanceled
The loan is canceled and closed.Archive+
23WaitingForDownPaymentWaiting For Down payment
The loan is waiting for a Down payment.Underwriting, Servicing

24RiskEvaluationRisk Evaluation
The application is under review of the risk manager.Risk Evaluation

100BankAccount_VerificationBank Account Verification
The loan agreement is waiting for bank verificationUnderwriting

101Closed_BankAccount_
Verification_Expired		Bank Account Verification Expired
The Bank Account Verification period has expired. Loan closedArchive+
102BankAccount_Pending_Verification BankAccount_Pending_Verification 
The Bank account is not yet verifiedRisk Evaluation

103BankAccount_Waiting_RemoteService BankAccount_Waiting_RemoteService 
Waiting for response from the remote bank provider serviceRisk Evaluation

200InitialPayments_PreApproval PendingInitialPayments
A client is expecting the very first loan deliveryUnderwriting

201InitialPayments_PreDisbursementPendingInitialPayments
A client is expecting the very first loan deliveryUnderwriting

250Closed_InitialPaymentsExpiredInitialPaymentsExpired
When a loan delivery date is dueUnderwriting

301Closed_OfferDeclined OfferDeclined
When a borrower declines the offerArchive

302Closed_OfferExpired OfferExpired
When a borrower has not replied to the offer in a given time periodArchive


Further reading

See also

More on loans:

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