Approving a Loan
  • 26 Jun 2023
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Approving a Loan

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Article summary

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.

Approve button on product Details tab

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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