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Understanding the lifecycle of a loan application is crucial for integrating with the lending platform. This page details the various states a loan application can traverse and the triggers for each transition.

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State Diagram

The following diagram illustrates the standard flow of a loan application from creation to disbursement.

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Loan States

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1. REQUESTED

The initial state when a customer submits a loan application.
  • Trigger: Customer calls POST /request-loan.
  • Action Required: Underwriting review (manual or automated).
  • Next Possible States: APPROVED, REJECTED.

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2. APPROVED

The application has passed underwriting checks and has been approved by a loan officer or the system.
  • Trigger: Admin approves the application via the dashboard or API.
  • Context: Loan terms (Amount, Rate, Tenure) are finalized in this state.
  • Next Possible States: OFFER_SENT.

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3. OFFER_SENT

A formal loan offer has been generated and presented to the customer.
  • Trigger: System generates the offer after approval.
  • Action Required: Customer must review and accept/reject the offer.
  • Next Possible States: ACCEPTED, REJECTED.

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4. ACCEPTED

The customer has accepted the loan offer and agreed to the terms and conditions.
  • Trigger: Customer calls PUT /accept-loan-offer/{id}/accept and PUT /accept-terms-and-conditions/{id}.
  • Action Required: Admin disbursement.
  • Next Possible States: DISBURSED.

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5. REJECTED

The application was rejected by the system/admin, or the offer was rejected by the customer.
  • Trigger:
    • Admin/System rejects application (Credit risk, eligibility failure).
    • Customer calls PUT /accept-loan-offer/{id}/reject.
  • Action Required: None. This is a terminal state.

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6. DISBURSED

The loan funds have been successfully credited to the customer’s wallet.
  • Trigger: Admin triggers disbursement.
  • Context: A wallet account is created, and the loan amount is credited. Repayment schedule is active.
  • Next Possible States: COMPLETED (after full repayment), DEFAULTED (if repayment fails).

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State Transitions & Webhooks

You can subscribe to webhook events to receive real-time updates when a loan application changes state.

Webhooks Documentation

Learn how to configure and handle webhook events.