What is the loan origination process

Definition

The Loan Origination process is the stage at which the platform decides whether the loan application can be approved, declined, or canceled. It is performed after the borrower has fully filled in the application (this is done by a separate, earlier stage called the Application process). By the time the Loan Origination process starts, all borrower information, supporting documents, and bank account details have already been collected.

Purpose

The process is responsible for:

• Running automated checks (financial data retrieval, credit bureau report, stop-factor controls).
• Letting a back-office verifier review the application (when configured).
• Calculating the credit limit, selecting a suitable loan product, and scoring the application.
• Letting a back-office underwriter make the final credit decision (when configured).
• Approving the application with final loan terms or declining/canceling it.
• Calculating the repayment schedule once the application is approved.
• Sending the borrower a notification with the outcome (approved, declined, or canceled).

Key characteristics

• Runs after the borrower has submitted all data — it never collects new application data from the borrower (except in the “request updates” loop, see below).
• The exact set of steps depends on who the borrower is (a person or a legal entity) and on the product group settings for verification, underwriting, decision making, and credit bureau.
• The borrower can monitor the application status in their portal during the entire process and may cancel the application at any point.
• The process always ends with one of three outcomes: Approved, Declined, or Canceled.