These are some of the main steps of the loan life cycle:

Customer Registration and Loan Origination

When Customer details are first entered into the System and a Customer Profile is created - this is the Customer Registration.

Customer Registration, in particular, can happen in the course of the Origination. Origination is what happens when the loan application is created. This can be done by the customer or by a Lender’s representative (permitted to use the Origination workplace) following their contact with the customer. As a result of the Loan Origination, details of the customer and of the loan application are entered into the system.

Loan Check and Evaluations

Before the loan application gets to the Underwriter who will make the final decision about its approval or rejection, it can go through several other verifications/evaluations

1. Originator’s Decision: When the loan application is originated by the Lender’s representative (in a Store or by the Lender’s Back-Office employee), the Originator shall send the loan for approval

2. Automatic Processing: This stage is not seen in the back-office, as TurnKey Lender’s dedicated decision engine evaluates the loan application validity on the background, based on the rules defined for the company and information about the loan/customer. For example, automatic processing may request information about the potential customer from a credit bureau. It is usually performed right after the application has been submitted.

3. Additional verifications: Subject to the settings of the credit product, the loan application may require additional verifications, such as bank account verification that can be performed after the loan origination or at the later stages (subject to the company processes and corresponding integration settings). The results of such verifications are visible to the users at the stages to follow.

4. Collateral Evaluation: If so is required by the product, the collateral manager enters information about the collateral used to secure the loan, assesses this information, makes a decision on the validity of this collateral and the possibility of the loan approval, as well as sets dates of the next collateral check (if required).

5. Risk Evaluation: The risk manager runs additional checks based on all the currently available information and results of the automatic processing and makes a decision on the validity of this collateral and the possibility of loan approval.

Final Approval/Rejection of the Loan Application (Underwriting)

Once the Loan Application has successfully passed all the required preliminary evaluations, the system will suggest a decision. If any of the checks require manual review, the loan will get to the Underwriter who is responsible for the final approval or rejection of the application.

If all the checks have been performed successfully, the loan can be automatically approved. However, if you want to make sure that no loan is approved without manual control, you can enable two-level approval at the credit product level.

When the loan has been approved (by the Underwriter or automatically), the Loan Offer and/or Agreement are executed and signed by the customer.

Gathering Investments

In some cases, the loan may require the additional gathering of the investments that can be performed after the Underwriter provides its initial approval. Such a loan becomes available at the Investor’s portal.

Loan Servicing

Once the Loan Agreement has been signed, the loan servicing stage starts:

1. Reimbursement and initial loan schedule update: The loan is reimbursed to the customer and the repayment schedule is adjusted (subject to the customer’s request or company procedures)

2. Loan payments: If everything is OK, the loan is paid in compliance with the schedule monitored by the Loan Manager

3. Handling payment issues: If there appear some issues with the loan repayment, the Loan Manager contacts the customer and applies all the possible effort to find mutually beneficial solutions

4. Loan closure: Subject to the flow of the loan repayment and decisions made in the process of its servicing the loan may be repaid, restructured, or written off. Any external investments related to the loan are handled correspondingly.

Debt Collection

Should there be any payment issues that cannot be handled by the Loan Manager, Collectors may be involved to force the loan collection process.

Loan Archive

Any rejected, canceled or closed loan is archived. Users with specific permissions can change the status of an archived loan.