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What are offer settings?
Imagine a lender receives two loan applications:
One borrower earns ₦500,000 monthly and has a strong repayment history
Another earns ₦80,000 with no prior loan record
Offering both borrowers the same loan amount and terms would either increase risk or limit revenue.
Offer settings solve this problem.
They allow lenders to automatically customize the loan amount, tenor, and terms presented to each borrower based on predefined rules.
The problem offer settings solve
Your decision model runs its checks and a borrower passes. Now what? Should they get the full amount they asked for? A portion based on their income? A capped amount based on your product limits?
Without offer settings, the system has no way to answer that question. Offer settings are the configuration layer that translates a passing score into an actual loan offer — defining the amount, tenor, and any dynamic adjustments that apply to each eligible borrower.
Think of it this way: the decision model is the gatekeeper that says yes or no. Offer settings are the terms the gatekeeper announces at the door.
What are offer settings?
Offer settings define the loan offer presented to a borrower after they pass eligibility checks.
They determine:
The loan amount a borrower can access
The tenor (repayment duration)
Any fees or conditions attached to the offer
In Lendsqr, offer settings are configured using JSON rules, allowing lenders to create flexible and dynamic loan offers.
It makes the offer calculations to be intuitive and robust enough to factor in different variables. In the default offer setting, the main variable used is the requested_amount.
Below is the default format for an offer setting;
When do you need offer settings?
Offer settings become important when you want to:
Adjust loan offers based on risk level
Reward repeat borrowers with better terms
Control maximum exposure per customer
Personalize offers using income, location, or behavior
Without offer settings, all approved borrowers would receive static and identical loan terms, which limits flexibility and increases risk.
What offer settings control
Offer settings sit within your Oraculi decision model and determine the loan offer presented to a borrower who clears all the configured checks. They typically control:
Loan amount — The maximum amount the borrower is eligible to receive. This can be a fixed value or dynamically calculated based on borrower data such as income, credit score, or existing loan history.
Minimum and maximum offer bounds — The floor and ceiling within which the system will calculate the offer, ensuring no borrower receives less than your minimum viable loan or more than your product cap.
Tenor — The repayment duration presented to the borrower. This can be fixed or variable based on the product and borrower profile.
Offer scoring logic — Rules that determine how the system calculates the final offer amount — for example, offering 30% of a borrower’s verified monthly income, subject to product limits.
How offer settings fit into the decision model
In Lendsqr’s Oraculi engine, a decision model has two main components: decision settings (the module checks that determine eligibility) and offer settings (what the borrower is offered if they pass).
When a borrower submits a loan application, Oraculi runs the decision modules in sequence. If the borrower clears all required checks, Oraculi then evaluates the offer settings to calculate the loan offer. The borrower sees only the final offer — they do not see the individual check results.
If the borrower fails any required check, offer settings are never evaluated. The application is declined based on the module failure.
How offer settings work
Offer settings are applied after a borrower passes decision model checks.
Here’s how it works in practice:
A borrower submits a loan application
The decision model evaluates eligibility (credit checks, fraud checks, etc.)
If approved, offer settings determine what the borrower actually sees
This includes:
Approved loan amount
Repayment duration
Any conditional adjustments
Offer settings typically use variables such as:
requested_amount (default input)
Income (from income module)
Customer history
Risk profile
Real-world examples
Example 1: Salary-based lending
A lender configures offer settings to adjust loan amounts based on income:
Customers earning above ₦300,000 → eligible for higher loan limits
Customers earning below ₦100,000 → restricted to smaller amounts
This ensures affordability and reduces default risk.
Example 2: Repeat borrower rewards
A lender increases loan limits for customers with good repayment history:
First-time borrower → ₦20,000 max
After 3 successful repayments → ₦100,000 max
This encourages good behavior while growing loan volume.
Example 3: Time-based disbursement control
A lender configures rules such that:
Applications during working hours → instant disbursement
Applications at night → sent for manual review
This helps manage operational risk and fraud exposure.
How Lendsqr enables offer settings
Capability
How it works in Lendsqr
Dynamic loan offers
Configure rules using JSON
Variable inputs
Use income, request amount, and customer data
Decision model integration
Applied after eligibility checks
Flexible customization
Adjust amount, tenor, and conditions per borrower
Offer settings are part of the broader decision model system, which controls how loan applications are evaluated and processed.
Why this matters for your lending business
Offer settings directly affect your portfolio risk and borrower experience. Setting your maximum offer too high increases default risk; setting it too low reduces conversions. Well-tuned offer settings tied to income verification data allow you to offer each borrower the most they can responsibly repay — which is better for both parties.
For example, a salary lending product might configure offer settings to cap loans at 50% of verified monthly salary, with a minimum of $100 and a maximum of $5,000. A borrower earning $800/month would automatically be offered up to $400, while one earning $2,000/month could receive up to $1,000 — all determined dynamically, without manual intervention.
Frequently asked questions
Can I use different offer settings for different loan products?
Yes. Each loan product is mapped to a specific decision model, and each decision model has its own offer settings. Create separate decision models if you need different offer logic for different products.
What happens if a borrower requests more than the offer settings allow?
The system will present the offer amount calculated by the offer settings, not the amount the borrower requested. The borrower can accept or decline this offer. If they decline, no loan is created.
Can offer settings pull in external data like credit bureau scores?
Yes, if your decision model includes modules that retrieve credit bureau data, that data can inform the offer calculation logic. The exact fields available depend on which modules are configured and which data providers are integrated with your platform.
Do offer settings affect loan approval?
No, approval is handled by decision models. Offer settings only determine the loan terms presented after approval.
Can I use income data in offer settings?
Yes, income variables can be used if the income module is configured.
