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Loan Applications
Loan Applications capture a borrower's request before a loan account is created or activated.
Workspace Reference
Open Loans -> Operations -> Applications. Use the create action for a new application, then complete the borrower, product, amount, security, guarantor, and purpose details required by the selected loan product.
The application workspace is the right place to capture demand, verify eligibility, and keep review history. Do not create an active loan account just to hold a request that has not been reviewed.
Application Capture
An application should include the applicant, loan product, requested amount, term, repayment details, purpose, collateral or guarantor information where required, and supporting documents.
Application Form Fields
| Field Or Section | What It Means | When It Is Important |
|---|---|---|
| Loan Product | The lending product the borrower is applying for. | Required. It controls amount limits, interest behavior, security requirements, eligibility, and accounting treatment. |
| Holder Type | Whether the loan is for an individual, a group, or a hybrid group. | Required. It determines which borrower fields appear and which account structure will be created after approval. |
| Individual | The client receiving an individual loan. | Required when holder type is individual. |
| Group | The group receiving a group loan. | Required when holder type is group. |
| Source Group / Flap | The parent group used for a hybrid group loan. | Required when holder type is hybrid group. |
| Borrowing Members | Whether all members or selected members participate in a hybrid group loan. | Important for member-level allocation and responsibility. |
| Selected Group Members | The members receiving the hybrid loan when selected-member mode is used. | Required when the selected-member option is used. |
| Requested Amount | The principal amount requested. | Must remain inside the selected product's configured minimum and maximum amount range. |
| Collateral | Assets pledged as security. | Required when the product enables collateral. |
| Share Pledges | Share balances pledged as security where the tenant uses share-backed lending. | Required only when the product and borrower structure require it. |
| Guarantors | Clients guaranteeing the loan. | Required when the product enables guarantors or sets a required guarantor count. |
| Loan Purpose | The reason for borrowing. | Supports portfolio analysis, policy review, and reporting. |
| Loan Sector | The economic sector linked to the borrowing purpose. | Supports sector exposure reporting and risk analysis. |
| Share Percent | Allocation percentage for purpose and sector rows. | Useful when the loan proceeds serve more than one purpose or sector. |
Review And Approval
Review users should confirm eligibility, affordability, policy compliance, documents, collateral, guarantors, and credit decision details before approval.
During review, compare the application against the product setup:
| Review Area | What To Check |
|---|---|
| Borrower identity | The individual, group, or selected hybrid members match the intended borrower. |
| Product fit | The chosen product supports the borrower type, branch, currency, amount, and term. |
| Amount limits | The requested amount is inside the product limits and any security-based limits. |
| Security | Required collateral, share pledge, or guarantor records are present and meaningful. |
| Purpose and sector | Purpose rows explain the use of funds and support reporting. |
| Documents | Required supporting evidence has been attached or captured according to policy. |
| Decision notes | Approvers can understand why the application was approved, rejected, or returned. |
Handoff To Loan Account
An approved application should only become an active account when the required checks are complete. Disbursement should then follow the configured payment and approval controls.
For a full scenario from borrower setup through first repayment and reporting, see Loan Application To Repayment.
Good Practice
Do not use loan accounts to capture unapproved demand. Use applications for review, decisioning, and audit history before activation.