Credit Product

For TurnKey Lender purposes, a credit product is a set of rules and conditions that apply to the processing and servicing of a specific loan. The list of credit products and their settings depend on a particular client and corresponds to the client’s needs. The availability of a credit product can be limited by the customer’s location or enabled with a promocode.

Loan

A loan is a sum of money borrowed and expected to be paid back, usually with an interest. In order to obtain a loan, the person who wants to borrow the sum (“Customer”) shall file a loan application.

Loan Application Processing

The subsections below provide for a happy flow of loan processing. Should any of the stages be impossible to complete with a positive result, the loan application is rejected or canceled.

In general, before the approval, we are working on a loan application, and from the moment of disbursement with a loan. A loan application is often referred to as a “loan” (e.g. loan origination, etc.).

Loan Origination

A loan application can be submitted to the potential lender via the TurnKey Lender system: This can be done by the customers themselves, by an employee of the lender (Back-Office employee), or by a representative of a vendor in a store where the customer wants to obtain some goods for which they want to take the loan. This process of loan application submission into the TurnKey Lender application is called loan origination.

Customer Registration

Loan origination is interconnected with the collection of information about the customer. If this is a new customer, their information shall be entered into the TurnKey Lender system. This is customer registration. If the Customer is already registered in the system, they don’t have to be registered repeatedly. Their information can be updated or used as is.

Loan Assessment

Following origination, the loan is checked against different conditions and by different people. The exact assessment process varies and may include an assessment by the originator, automatic assessment against pre-defined rules and data from the credit bureau report, assessment of risks, evaluation of the collateral, and final manual decision.

Loan Approval, Offer Confirmation, and Agreement Signing

Once the loan has been approved, the lender’s back-office employee can (if applicable) suggest to the customer a final offer or several offers that the customer may approve. If the customer has approved the offer, an agreement is executed the customer shall sign that.

Loan Fees

Additional fees can be applied on, before, or after any of the stages.

Loan Disbursement

Once all the assessments have been successfully passed, the offer has been accepted, the agreement has been signed, the additional fees due before disbursement have been paid, and the funds requested as a loan are provided to the customer. This can be done via a payment provider inside TurnKey Lender System or any other way, beyond the system. In the latter case, the loan disbursement shall be registered in the system.

Loan Servicing, Collection, and Closure

After the disbursement, the customer starts paying off the loan body, interest, and any related fees in compliance with the schedule provided in the offer.

Should the customer not be able to make a due payment, there is a number of tools, such as payment holiday or loan restructuration.

Should that not be helpful, the loan payments can be collected.

Once the loan has been paid off or the leftover debt has been written off, the loan is closed.