The loan lifecycle

Every loan status, how a loan moves between them, and which actions can be undone.

Every loan moves through a series of statuses. Each move is an action a permitted user takes — and most can be undone if done by mistake, as long as nothing has happened after it.

The normal path

Submitted→Pending→Approved→Active→Closed

Other outcomes

Status	How a loan gets there	Undo
Submitted / pending	A loan application is created and waits for approval.	—
Approved	An approval officer approves it, possibly for a different amount.	Undo approval
Rejected	The approver rejects it.	Undo rejection
Withdrawn	The member withdraws before disbursement.	Undo withdrawal
Active	The loan is disbursed and is being repaid.	Undo disbursement
Overpaid	The member paid more than was owed.	Refund or transfer the excess
Rescheduled	Terms were changed and a new schedule issued.	—
Written off	The loan is judged uncollectable and removed from the portfolio.	Undo write-off
Closed	Fully repaid, or closed by a user.	Undo close

Important

Undo actions reverse the accounting entries too. If later transactions exist (for example repayments after a disbursement), reverse those first, newest to oldest.

Loan transaction types

Every money movement on a loan is a transaction of one of these types — you will see them on the loan’s transaction list and statement.

Type	Meaning
Disbursement	Money paid out to the member
Repayment	Money received from the member
Repayment at disbursement	Fees collected at the moment of disbursement
Apply charges / Waive charges	A fee or penalty added / cancelled
Apply interest / Waive interest	Interest added / forgiven
Write off	Balance removed as uncollectable
Recovery repayment	Money collected after write-off
Marked for rescheduling	Loan placed into rescheduling
Loan top up	Additional amount added to an active loan
Contra	A reversal entry
Closed	Loan closure