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.
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This article provides description of the loan statuses. 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 (see /wiki/spaces/TKL/pages/164986881)
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Pre-Origination
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- Loan Application is being created
- Customer logs-in or an account is created for the customer
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- Start page
- Origination
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- Customer created in the system
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- 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
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- Origination
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- Recommend for approval
- Cancel
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- Loan application recommended for approval at the Origination Stage
AND
- Collateral evaluation is required for the credit product
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- The loan's collateral is being added and evaluated
- Decision to recommend/not recommend the loan application for approval is made
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- Collateral
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- Recommend for approval
- Return for reprocessing
- Reject
- Cancel
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- Loan application recommended for approval at the Origination Stage
AND
- If required, loan application recommended for approval at the Collateral stage
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- 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
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- Underwriting
(the actions are performed at the background and their results are visible on the Underwriting workplace)
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- Automatically recommend for approval
- Automatically Approve
- Automatically reject
- Cancel
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- Two-step approval is required for the credit product
AND
- Loan application passed all the required Auto Processing checks
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- Loan application is being pre-checked by an authorized Credit Manager
- Decision to recommend/not recommend the loan application for approval is made
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- Risk Evaluation
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- Recommend for approval
- Return for reprocessing
- Reject
- Cancel
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- Loan application returned for reprocessing
(after Collateral or Risk Evaluation, or by an authorized Underwriter)
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- Basic customer details are edited or updated
- Initial decision to recommend/not recommend the loan is confirmed or updated
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- Origination
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- Recommend for approval (repeatedly)
- Cancel
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- 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
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- Loan application is awaiting for the decision of an authorized Underwriter
- Authorized Underwriter is taking the final decision on the application approval
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- Underwriting
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- Approve
- Return for reprocessing
- Reject
- Cancel
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- Loan application was approved at the end of Auto Processing or Underwriting stage
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- Loan application is awaiting for disbursement
BUT - It can still be rejected by an Authorized Underwriter
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- Servicing
- Underwriting
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- Initiate disbursement (Servicing)
- Reject (Underwriting)
- Cancel
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- Loan application was rejected
(as a result of Collateral or Risk evaluation; Auto Processing or authorized Underwriter's decision)
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- 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
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- Origination
- Collateral
- Risk Evaluation
- Underwriting
- Archive
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- Sent for reprocessing
- Approve
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Gathering Investments
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- Loan application was approved
- The credit product implies peer-to-peer investment
- Not all required loan amount has been collected
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- Investments for the loan are being collected
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- Servicing
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- Reject
- Cancel
- Collect full amount of the investments
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Active
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- The loan was disbursed to the customer.
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Loan is being serviced:
- Schedule is updated
- Payments are collected
- Any payment issues are registered
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- Servicing
- Collateral (if collateral needs to be re-valuated)
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- Register payment
- Restructure the loan
- Set the loan to paid-off
- Set the loan to repaid
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Past Due
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- Loan payment wasn't performed on time
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- There is a past-due debt for this loan.
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- Servicing
- Collection
- Collateral (if collateral needs to be re-valuated)
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- Register payment
- Restructure the loan
- Set the loan as paid-off
- Set the loan as repaid
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Repaid
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Written off
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Rollover Requested
not applicable starting from version 7.0
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Disbursement Failed
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Disbursement of the loan via a payment system is finished unsuccessfully.
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Disbursement in Progress
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Restructured
not applicable starting from version 7.0 ????
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Waiting for offer confirmation
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- Loan was approved
- Offer was sent to the customer
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Waiting for signature
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Agreement Declined
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Agreement expired
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Customer deleted
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Canceled
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Waiting For Down payment
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Risk Evaluation
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Bank Account Verification
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Waiting for Bank Account Verification
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Waiting for response from the bank service provider
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Pending Initial Payment
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Pending Predisbursment Payment
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Expired Initial Payment
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Offer Declined
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Offer Expired
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Further reading
- The previous version of this article (in Russian / на русском): /wiki/spaces/EL/pages/38396
- Original article: Loan Status
See also
More on loans:
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