In the loan application process, not every request ends with disbursement. Sometimes, a user starts the process but doesn’t complete it or delays action after receiving an offer. In such cases, the loan request is marked as “Abandoned.”
Understanding the term
An abandoned loan request refers to a situation where:
- A customer receives a loan offer (after being assessed) during loan application but either refuses to accept the offer.
- A user starts a loan application but then quits midway, without completing the process or formally cancelling it even after being deemed eligible.
In either case, the system automatically updates the loan status to “Abandoned” after a period of inactivity or non-acceptance.
Read further: Understanding loan statuses
Why do loan requests get abandoned?
There are several reasons a loan may be abandoned:
- The user changed their mind after seeing the offer details.
- The loan terms (e.g. interest rate, repayment schedule) didn’t meet their expectations.
- The user applied out of curiosity but wasn’t fully ready to borrow.
- Technical or connectivity issues caused the user to leave the process midway.
- The user decided to explore other financial options instead.
What happens after a loan is abandoned?
Once a loan request is marked as abandoned:
- The request is considered inactive and won’t proceed to approval or disbursement.
- No loan is issued, and there is no impact on the user’s credit or account, as long as the request was not accepted.
Also read: What investors want to see before they fund your loan startup