> ## Documentation Index
> Fetch the complete documentation index at: https://docs.fincode.technology/llms.txt
> Use this file to discover all available pages before exploring further.

# Repayment Flow

This guide details the complete repayment flow for digital lending, from viewing repayment information to making payments and tracking repayment history.

<Note>
  The repayment flow covers **Viewing Repayment Information**, **Making Repayments**, **Payoff**, and **Tracking History**.
</Note>

## Phase 1: View Repayment Information

### Check Pending Repayments

Customers can view all their pending repayments across all active loans.

<CardGroup cols={2}>
  <Card title="Pending Repayments" href="/api/lending/pending-repayments">
    View all pending repayments
  </Card>

  <Card title="Manage Loans" href="/api/lending/manage-loans">
    View loan details and manage loans
  </Card>
</CardGroup>

### Get Repayment Instructions

Before making a repayment, customers can retrieve detailed repayment instructions including bank account details and payment reference.

<Card title="Repayment Instructions" href="/api/lending/repayment-instructions">
  Get detailed repayment instructions
</Card>

## Phase 2: Make Repayment

### Partial Repayment

Customers can make partial repayments (installments or custom amounts) for their loans.

<CardGroup cols={2}>
  <Card title="Repay Loan" href="/api/lending/repay-loan">
    Make a partial repayment
  </Card>

  <Card title="Repaid Transactions" href="/api/lending/repaid-transactions">
    View repayment history
  </Card>
</CardGroup>

### Full Payoff

Customers can pay off their entire loan balance in a single transaction.

<Card title="Payoff Loan" href="/api/lending/payoff-loan">
  Pay off entire loan balance
</Card>

### Repayment Process

1. **Choose Repayment Type**: Customer selects either partial repayment or full payoff.

2. **Provide Payment Details**: For partial repayment:
   * **Repayment Amount**: Amount to pay
   * **Customer ID**: Customer identifier
   * **Account ID**: Loan account identifier
   * **Bank Account ID**: Source bank account
   * **Repayment Reference**: Payment reference (if paid externally)
   * **Payment Date**: Date payment was made
   * **Payment Narration**: Optional description

3. **Submit Repayment**: System processes the repayment:
   * Validates loan status (must not be CLOSED)
   * Checks if manual repayment is allowed
   * Records the repayment
   * Updates loan balance
   * Returns confirmation with repayment details

4. **Verification**: Repayments are recorded with status `PENDING_VERIFICATION`:
   * System verifies the payment
   * Once verified, loan balance is updated
   * Customer receives confirmation

<Info>
  Some loans may use third-party collection services (e.g., Remita). In such cases, manual repayments through the API may not be allowed. Customers should use the designated third-party channel for repayments.
</Info>

## Phase 3: Repayment Methods

### Manual Bank Transfer

For loans that allow manual repayment:

1. **Get Repayment Instructions**: Retrieve bank account details and payment reference
2. **Make Bank Transfer**: Transfer funds to the provided account with the reference
3. **Record Repayment**: Submit repayment details via API
4. **Verification**: System verifies the payment and updates loan balance

<Note>
  Always include the repayment reference in your bank transfer narration to ensure proper matching and verification.
</Note>

### Third-Party Collection

For loans configured with third-party collection:

1. **Check Collection Channel**: System indicates if third-party collection is required
2. **Use Designated Channel**: Make payments through the specified third-party service
3. **Automatic Verification**: Third-party service verifies and updates the loan automatically

<Warning>
  If a loan uses third-party collection, manual repayments via the API will be rejected. Always check the loan's repayment collection configuration.
</Warning>

## Phase 4: Track Repayment History

### View Repayment History

Customers can view their complete repayment history for all loans.

<CardGroup cols={2}>
  <Card title="Repaid Transactions" href="/api/lending/repaid-transactions">
    View all repaid transactions
  </Card>

  <Card title="Loan History" href="/api/lending/get-loan-history">
    View loan history
  </Card>
</CardGroup>

### View Loan Details with Installment Schedule

Customers can view detailed loan information including payment history and complete installment schedule.

<Card title="Loan Details with Payment History" href="/api/lending/loan-details-with-payment-history">
  View loan details with installment schedule and payment history
</Card>

## Key Concepts

### Repayment Status

Repayments go through different statuses:

* **PENDING\_VERIFICATION**: Repayment has been recorded but not yet verified
* **VERIFIED**: Repayment has been verified and loan balance updated
* **REJECTED**: Repayment verification failed (e.g., incorrect reference, insufficient funds)

### Payment Allocation

When a repayment is made, the system allocates the payment in the following order (based on loan product configuration):

1. **Penalties** (if any)
2. **Fees** (if any)
3. **Interest**
4. **Principal**

<Card title="Learn More" href="/lending/overview">
  Return to lending overview
</Card>