Running loan status indicates that a loan has been approved, disbursed, and is currently active in the borrower’s account. This status represents the active phase of the lending lifecycle where borrowers are expected to make regular repayments according to their loan terms.
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Understanding loan status progression
From approval to running status
After a lender approves and disburses a loan, the loan automatically acquires the running loan status. This transition marks the beginning of the active repayment period for borrowers.
Active loan management phase
When loans have running status, they require ongoing monitoring for payment schedules, overdue amounts, and borrower compliance with repayment terms.
Key characteristics of running loans
Active repayment obligations
Loans with running status have active repayment schedules that borrowers must follow. These loans generate regular payment reminders and track repayment progress.
Ongoing interest accrual
Running loans continue to accrue interest according to the agreed terms until fully repaid or the status changes due to completion or default.
Real-time loan monitoring
Lenders can track performance metrics, payment history, and account balances for all loans maintaining running status in their portfolio.
Managing loans with running status
Payment tracking and reminders
Monitor repayment schedules, send payment reminders, and track borrower compliance to ensure smooth loan management throughout the active period.
Performance analysis
Analyze repayment patterns and borrower behavior for loans in running status to improve future lending decisions and risk assessment strategies.
Understanding running loan status helps lenders effectively manage active loans and maintain healthy lending portfolios with optimal repayment rates.
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