Before originating the first loan

What this prepares

A permitted team can start a Loan Application, progress the configured workflow, approve terms, book the application into a contract and account, and perform the intended disbursement and repayment operations.

Required before first use

• The borrower is an Authorized, active customer within the user's data scope.
• An Authorized Loan Product points to an Authorized customer-facing ledger product.
• The Loan Product has an Authorized default Workflow Definition with owner type Loan and an authorized initial stage. Application creation is blocked when the product has no default workflow.
• The workflow stages contain the actions required by the designed journey. Booking normally needs actions for booking the contract, creating the loan account, and generating the repayment schedule. Add facility, guarantee, or collateral actions only where those operations belong in the journey.
• An Authorized default Account Condition policy resolves to an Authorized Account Condition for the loan currency and amount.
• The product has Authorized eligibility, pricing, repayment, and penalty policies. Loan Product submission requires all four, even when the first controlled scenario will not exercise every later lifecycle outcome.
• Authorized default disbursement and repayment transaction codes, a default repayment frequency, and at least one allowed repayment frequency are configured on the product.
• The facility class used at booking is configured for the loan product's ledger product.
• The loan application, loan contract, facility, and customer-account ID sequences exist. They are seeded during license creation.
• The relevant branch, tenant currency, account status, transaction codes, and active financial calendar are ready for account creation and financial posting.

Use Lending configuration, Workflow definitions, Account configuration, and Transaction Codes with Chart of Accounts.

Access and workflow roles

• The maker needs Create Loan Application and scope over the borrower and any selected accounts.
• Application maintainers need Update Loan Application.
• Stage routing requires Assign Loan Application.
• Eligibility, pricing, terms, workflow decisions, progression, and booking use Process Workflow when the current stage and assignment allow them.
• A configured eligibility exception requires Waive Loan Application, a waivable rule, and a reason.
• Provide the exact Loan Application L1, L2, and L3 authority required by the role's operational actions.

Required only when using this feature

• If the product requires disbursement or repayment accounts before booking, provide authorized borrower-owned accounts in the loan currency. A group loan uses the group customer as the account owner.
• The configured eligibility evaluation must pass before booking, and the current approved amount must have a matching persisted pricing snapshot.
• Configure effective rate values when the Account Condition policy resolves a rate definition rather than fixed tiers.
• For group lending, configure active group membership and an active meeting schedule when repayments are harmonized to meetings.
• If the workflow requires guarantees or collateral, configure contribution balances, collateral types, valuation rules, and the corresponding facility work before the booking stage.
• Configure provision mappings and internal GL coverage before the first COB that will service an active loan. Collateral and guarantee setup remains conditional on the actions configured in the product's workflow.

Verify the setup

1. Sign in as the intended maker and open Loans → Loan Applications.
2. Select Create Loan Application and confirm that the intended product, borrower, currency, and optional purpose and accounts are available.
3. Save a controlled application and confirm that the product's initial workflow stage is created.
4. Progress the test through assignment, required evidence, eligibility, pricing, and terms approval.
5. Book it using a valid facility class and branch. Confirm that remoteEaze creates the contract, loan account, and repayment schedule.
6. Exercise the configured disbursement path before opening the product to production users.

Continue with Start a loan application and Authorize and book a loan.