Introduction
In the world of digital lending, not all loans follow the same repayment journey. Sometimes, a lender may decide to end a loan without collecting the full outstanding balance. On the Lendsqr platform, this scenario is represented by the terminated loan status.
This status is manually applied by an admin from the Lendsqr admin console. It is typically used in cases where the remaining amount due on a loan is too small to justify collection. Rather than continuing to chase a negligible sum or keep the loan active indefinitely, the admin chooses to close it by terminating the loan.
For example, if a borrower has repaid most of their loan but leaves a balance of just ₦2 or ₦5 due to system rounding or transfer shortfall, the lender may consider it operationally more efficient to mark it as terminated rather than attempt further deductions or manual follow-ups.
Using the terminated loan status helps maintain clean and accurate loan records. It also signals that the loan is no longer active, avoiding confusion for both internal teams and customers.
It’s important to note that this action is not automated—it requires human review and intent. That’s why it’s often used selectively for cases that fall outside the regular repayment structure but don’t warrant aggressive recovery efforts.
For more guidance on managing loans and customizing statuses on Lendsqr, reach out to support@lendsqr.com.
Read more about loan statuses here: Understanding loan statuses
Also read: Why and how Lendsqr doesn’t work with predatory lenders