Loan Lifecycle

Chinese source: 贷款生命周期 Locale: en-US Audience: Internal learning

Concept

The loan lifecycle describes the full path from application, approval, signing, and disbursement through repayment, delinquency, payoff, or charge-off.

Loan-core screens are rarely isolated. A screen action often moves the loan to the next state or changes an agreement, note, repayment schedule, receivable, or accounting event.

Typical Lifecycle

flowchart TD
  A["Loan Application"] --> B["Credit Approval"]
  B --> C["Agreement Signing"]
  C --> D["Collateral Perfection"]
  D --> E["Disbursement"]
  E --> F["Regular Repayment"]
  F --> G["Payoff"]
  F --> H["Delinquency"]
  H --> I["Collections"]
  I --> J["Extension / Restructuring"]
  I --> K["Charge-off"]

Stage Notes

Stage	System Focus	Typical Result
Application	Customer, product, amount, term, purpose.	Application record.
Approval	Risk review, limit, authority, decision.	Approved, rejected, returned.
Signing	Terms, rate, repayment method, collateral.	Loan agreement.
Disbursement	Limit, account, start date, note.	Booked loan asset.
Regular repayment	Due amount, paid amount, allocation order.	Principal and receivables decrease.
Delinquency	Days past due, penalty interest, collections.	Status migration and higher risk.
Payoff	Principal, interest, and fees fully settled.	Note closed and collateral released.
Charge-off	Loss recognized or asset removed from books.	Accounting treatment, collections may continue.

Status Types

Status Type	Examples	Purpose
Agreement status	Pending signing, active, terminated, expired.	Controls drawdown and amendment.
Note status	Current, delinquent, paid off, charged off.	Reflects asset condition.
Repayment status	Not due, partially paid, paid, past due.	Controls receivables and payment processing.

Screen Reading Questions

1. Which lifecycle stage does this screen belong to?
2. Which object's status changes after submission?
3. Does it create an agreement, note, schedule, or receivable?
4. Does it trigger credit-line usage, collateral usage, or accounting entries?
5. Can it be reversed, canceled, reprocessed, or corrected?

Related Topics

Topic	Use
Credit Lines, Loan Agreements, and Notes	Understand lifecycle objects.
Delinquency, Collections, and Loan Status	Understand the exception path.
Loan Risk Classification and Allowance	Understand risk consequences.