> ## 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.

# Underwriting

The underwriting process is the core of the lending platform, determining the creditworthiness of applicants and structuring loan offers. Our system supports a hybrid approach combining automated checks with manual review capabilities.

## Underwriting Workflow

```mermaid theme={null}
flowchart TD
    A[Application Submitted] --> B{Automated Checks}
    B -->|Pass| C[Credit Scoring]
    B -->|Fail| D[Auto-Rejection]
    C --> E{Risk Score}
    E -->|High Risk| D
    E -->|Low/Medium Risk| F[Manual Review Queue]
    F --> G{Loan Officer Decision}
    G -->|Approve| H[Set Terms & Offer]
    G -->|Reject| D
```

## 1. Automated Checks

Immediately upon submission, the system performs a series of validation checks:

### Eligibility Rules

* **Age Verification**: Checks if the applicant meets the minimum/maximum age requirements.
* **Location**: Verifies if the applicant is in a supported region/country.
* **Employment Status**: Filters allowed employment types (e.g., Salaried, Self-Employed).

### KYC Verification

* **Identity Check**: Validates BVN (Bank Verification Number) against the national database.
* **Blacklist Check**: Screens the applicant against internal and external blacklists (AML/CFT).

<Card title="Eligibility API" href="/api/lending/loan-eligibility-questions">
  View how dynamic eligibility questions are retrieved.
</Card>

## 2. Credit Scoring

For applications that pass initial checks, the system calculates a credit score using multiple data points:

* **Bureau Data**: Credit history, existing debts, and repayment behavior from credit bureaus.
* **Platform Data**: Transaction history, wallet balance, and previous loan performance on our platform.
* **Alternative Data**: Income estimation based on bank statement analysis (if integrated).

The result is a **Risk Score** (e.g., 0-100) that categorizes the applicant:

* **Green (Low Risk)**: High likelihood of approval.
* **Amber (Medium Risk)**: Requires careful manual review.
* **Red (High Risk)**: Recommended for rejection.

## 3. Manual Review

Loan officers use the Admin Dashboard to review applications in the queue.

### Review Actions

1. **Verify Documents**: Review uploaded ID cards, payslips, or bank statements.
2. **Analyze Risk**: View the calculated Risk Score and detailed credit report.
3. **Decision Making**:
   * **Approve**: The officer can approve the loan.
   * **Reject**: The officer can reject the loan with a specific reason code.

### Setting Loan Terms

Upon approval, the loan officer determines the final terms of the offer:

* **Approved Amount**: Can be equal to or less than the requested amount.
* **Interest Rate**: Set based on the risk profile and product configuration.
* **Tenure**: Finalized repayment period.

## Decision Outcomes

### Approval

If approved, the application moves to the `APPROVED` state. The system generates a loan offer containing the finalized terms, which is then made available to the customer.

<Card title="Get Loan Offer" href="/api/lending/get-loan-offer">
  See how customers retrieve their approved offer.
</Card>

### Rejection

If rejected, the application moves to the `REJECTED` state. The customer is notified, and depending on configuration, may be eligible to re-apply after a cooling-off period.