Approving a Loan
- 26 Jun 2023
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Approving a Loan
- Updated On 26 Jun 2023
- 1 Minute To Read
- Print
- DarkLight
- PDF
Article summary
To approve a loan account, click the Approve button and confirm. This changes the account state to Approved, ready for disbursal. Loans can only be approved in Pending Approval state. For Partial Application state, click Request approval. Validation includes securities requirements and line of credit restrictions. Users must stay within transaction limits. To undo approval, select More, then Undo Approve to return the account to Pending Approval state.
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To approve a loan account, select the Approve button, and confirm the dialog box. This will change the account state to Approved, and it will be ready for disbursal as the Disburse button becomes visible.
Please be Aware
Before you can disburse a loan account, it has to be approved by a user with the
Approve Loan permission.
It is only possible to approve loans in the Pending Approval state, when a loan account is in Partial Application state it can be submitted for approval by clicking on the Request approval button and confirming. For more information, please see Loan Account's life cycle and states.
Please Note
Once a loan account is approved, the loan parameters - such as amount, rate, terms, and so on - cannot be further edited; only custom field values and the account name can be edited after approval.
At approval, the system will validate additional constraints, such as:
- Accounts must comply with the securities requirements. If set at product level, the required percentage of securities should be present on the account for it to be approved.
- Line of credit restrictions (if applicable): the loan should be within the line of credit's date and amount limits.
- User transaction limits. If the approval limit is set, the system will not allow users to approve loans that are over their allowed approval limit.
Undoing a loan account approval
If you want to undo the approval of a loan account, select More > Undo Approve. This will bring the account back to the Pending Approval state.
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