Understanding loan statuses

Loan statuses represent the different stages a loan goes through from application to closure on the Lendsqr admin console. Each status reflects a specific point in the loan lifecycle and is triggered by system events, user actions, or admin decisions.

Understanding these statuses is essential for effective loan management, operational tracking, and customer support.

Why loan statuses matter

When a borrower asks, “Why hasn’t my loan been disbursed?”, you need to quickly identify the status and its cause. Statuses track every stage:

• Submission → Review → Approval → Disbursement → Repayment → Closure
• System errors, validation blocks, or user actions can pause or alter progression

By understanding each status, your team can:

• Take appropriate recovery or escalation actions
• Respond faster to queries
• Maintain a clean portfolio
• Prevent processing errors

Viewing Loan Statuses in the Console

You can quickly check the status of any loan on the Lendsqr admin console using visual cues and filters.

Step 1: Access Loans

1. Log in to the Lendsqr admin console.
2. Navigate to Loans.

Step 2: Identify Loan Status

• Click on a loan to see its current status at the top of the loan details page.
• Colored status indicator (first column on the left) shows loan state:
  • 🟢 Green → Running
  • 🔴 Red → Past Due
  • ⚪ Grey → Settled or Reversed
    Tip: Hovering over the colored circle displays the exact status name.

Step 3: Use Filters for Quick Access

You can filter loans by specific criteria:

Filter Options:

• Branch
• Email
• Phone Number
• BVN
• Principal
• Tenor / Tenor Period
• Status (Running, Settled, Past Due, Pending Email Verification, Terminated, Reversed, Lost, Archived variants, Pending Mandate Activation, Pending Activation)
• Loan Product Type

Applying Filters:

1. Select the desired filter(s).
2. Click Filter to apply.
3. Click Reset to clear filters.

Using colored indicators and filters together allows admins to efficiently monitor loan progression, identify bottlenecks, and respond to borrower inquiries faster.

Loan Lifecycle Overview

A typical loan progresses as follows:

Application → Pending → Approval → Running → (Past Due or Settled or Reversed)

Not all loans follow a perfect path; some may be:

• Declined by admin
• Cancelled by borrower
• Reversed before funds are withdrawn

Statuses fall into three main groups:

• Blocking / Validation Statuses – prevent progression until resolved
• Loan Request Statuses – before approval/disbursement
• Active Loan Statuses – after funds are disbursed

Every loan on the system transitions through multiple states depending on:

• User actions (e.g., applying, accepting offers)
• System decisions (e.g., credit checks, eligibility)
• Admin actions (e.g., approval, decline, termination)
• Repayment behavior (e.g., on-time, overdue)

These statuses help you:

• Monitor loan progress
• Identify bottlenecks
• Take appropriate actions at each stage

Loan request statuses

These statuses apply before a loan is approved and disbursed.

Status	What it means	What to do
Pending	The borrower has submitted an application and it is awaiting review.	Review the borrower’s decision data and approve or decline.
Pending email verification	The borrower has not yet verified their email address.	Ask the borrower to check their inbox and click the verification link.
Pending guarantor verification	A guarantor has been requested but has not yet verified.	Follow up with the guarantor or check their contact details are correct.
Failed	The application could not be processed due to an error or failed check.	Review the failure reason in the decision data and advise the borrower.
Abandoned	The borrower started an application but did not complete it.	The borrower can resume from the web app, or you can follow up.
Declined	The application was reviewed and rejected.	A new application can be submitted if circumstances change.
Cancelled	The application was withdrawn before approval.	No action needed. A new application can be submitted.

Active loan statuses

These statuses apply after a loan has been approved and disbursed.

Status	What it means	What to do
Running	The loan is active and repayments are in progress.	Monitor repayment schedule. No action unless payments are missed.
Past due	A repayment has been missed and the loan is overdue.	Contact the borrower and initiate collection. Review penalty settings.
Terminated	The loan was ended before maturity, usually due to default.	Mark any outstanding amounts as bad debt or pursue recovery.
Reversed	The disbursed funds were recalled before the borrower withdrew them.	Review the reason for reversal and communicate with the borrower.
Settled	The borrower has fully repaid the loan.	No action needed. The loan is closed.

A note on the ‘Reversed’ status

A loan can only be reversed if the disbursed funds are still sitting in the borrower’s wallet and have not yet been withdrawn. Once withdrawn, reversal is no longer possible. This is an important distinction — see the article on reversing a loan for the exact process.

Transition Logic & Triggers

• Pending → Running: Admin approves + successful disbursement
• Pending → Declined: Admin rejects application
• Pending → Failed: System auto-rejects
• Running → Past Due: Missed repayment date triggers automatic flag
• Running → Reversed: Admin initiates reversal before withdrawal
• Running → Terminated: Admin manually closes loan
• Past Due → Running: Possible if borrower repays late
• Blocking States: Pending Guarantor / Email Verification prevents approval

Real-World Scenarios

Scenario 1: Smooth Loan Lifecycle

1. Borrower applies → Pending
2. Admin approves → Running
3. Borrower repays on time → Settled

Scenario 2: Loan Default

1. Borrower applies → Pending
2. Approved → Running
3. Misses repayment → Past Due
4. Collections initiated → recovery or Terminated

Scenario 3: Reversal

1. Loan approved → Running
2. Funds untouched in wallet
3. Admin reverses → Reversed

Scenario 4: Abandoned Application

1. Borrower starts application → abandons → Abandoned

Key Operational Insights

1. Status Determines Actions
   • Pending: Approve/Decline
   • Running: Monitor repayments
   • Past Due: Trigger recovery
   • Reversed/Terminated/Settled: No action
2. Who Drives Status?
   • System: Failed
   • Admin: Declined, Terminated, Reversed
   • User: Cancelled, Abandoned
3. Blocking Conditions
   • Pending Guarantor / Email Verification prevent loan approval

Frequently asked questions

Question	Response
#1 Can a loan move back to a previous status?	In most cases, no. Loan statuses follow a forward-only lifecycle. A loan that is Running cannot go back to Pending. The exception is if a system correction is made by an admin with the appropriate permissions.
#2 What is the difference between Declined and Cancelled?	A Declined loan was reviewed and rejected by a lender or the system. A Cancelled loan was withdrawn usually by the borrower or an admin before any review decision was made. Both end the loan request, but for different reasons.
#3 How do I filter loans by status?	On the Loans section of the admin console, use the Status filter at the top of the table to display only loans in a specific status. This is useful for reviewing all past-due loans or checking pending applications at once.
#4 What does failed loan request mean?	A failed loan request means the system deemed the user ineligible based on your configured decision criteria, you can view the specific reasons by checking the decision data for that request in the Lendsqr admin console by following the guide here.

Conclusion

Loan statuses provide a complete picture of where each loan stands within its lifecycle. By understanding what each status represents and how transitions occur, admins can manage loans more effectively, reduce risk, and improve overall operational efficiency.

A well-managed status flow ensures better decision-making, faster processing times, and a smoother experience for both lenders and borrowers.

Read further: How to modify a loan on the admin console
Approving and declining a loan request