> ## Documentation Index
> Fetch the complete documentation index at: https://docs.onnucleus.com/llms.txt
> Use this file to discover all available pages before exploring further.

# Loan Origination & Approvals

> End-to-end credit lifecycle: origination, credit bureau appraisal, Head Office approval limits, and disbursement.

Nucleus provides an automated credit engine supporting reducing balance, flat, and declining balance amortisation schedules.

```
 Loan Officer          Credit Bureau / KYC         Branch Manager             Head Office
   (Maker)                   (Checks)                 (Checker)              (Escalation)
      │                         │                         │                        │
      ├───── 1. Originate ─────►│                         │                        │
      │      Application        ├──── 2. Verify DSR ─────►│                        │
      │                         │        & Bureau         ├─ 3. Approve (<= Limit) ┤
      │                         │                         │                        │
      │                         │                         ├── 4. Escalate (>Limit)►┤
      │                         │                         │                        │
      │◄────────────────────────┴─────────────────────────┴──── 5. Disburse ───────┤
```

***

## 1. Origination & Credit Appraisal (Maker)

The **Loan Officer (Role `320003`)** originates the credit facility:

```bash theme={null}
POST /nucleus/api/v1/loans?tenantIdentifier=pilot-mfb
Content-Type: application/json

{
  "clientId": 3,
  "productId": 1,
  "principal": 500000.00,
  "loanTermFrequency": 12,
  "loanTermFrequencyType": 2,
  "numberOfRepayments": 12,
  "repaymentEvery": 1,
  "repaymentFrequencyType": 2,
  "interestRatePerPeriod": 3.0,
  "amortizationType": 1,
  "interestType": 0,
  "interestCalculationPeriodType": 1,
  "transactionProcessingStrategyCode": "mifos-standard-strategy",
  "expectedDisbursementDate": "15 September 2026",
  "submittedOnDate": "12 September 2026",
  "dateFormat": "dd MMMM yyyy",
  "locale": "en"
}
```

***

## 2. Who Configures the Flow in the Bank?

* **Flow Architect:** The **System Access Control Admin (Role `320017`)** and **Bank Admin (Role `320009`)** define the bank's organogram and departmental tiers.
* **Approval Policy:** Configured under **Approval Policies (`/approval-policies`)** by the **Head of Operations (Role `320011`)**.
  * Example: Loans up to ₦1,000,000 are approved by the **Branch Manager**.
  * Loans between ₦1,000,001 and ₦5,000,000 require **Branch Manager + Head Office Credit Risk**.
  * Loans exceeding ₦5,000,000 require the **Executive Credit Committee / MD & CEO**.

***

## 3. Can Head Office Approve Loans?

**Yes.** When a loan exceeds the branch's discretionary approval limit, it is placed in an escalation queue for Head Office approvers:

```bash theme={null}
POST /nucleus/api/v1/loans/1?command=approve&tenantIdentifier=pilot-mfb
Content-Type: application/json

{
  "approvedOnDate": "12 September 2026",
  "approvedLoanAmount": 500000.00,
  "expectedDisbursementDate": "15 September 2026",
  "note": "Approved by Head Office Credit Committee after verifying CRC report.",
  "dateFormat": "dd MMMM yyyy",
  "locale": "en"
}
```

***

## 4. Disbursement

Disbursement credits the borrower's operating savings account and automatically creates balanced General Ledger journal entries (Debit: Loans Receivable, Credit: Customer Savings / Vault):

```bash theme={null}
POST /nucleus/api/v1/loans/1?command=disburse&tenantIdentifier=pilot-mfb
Content-Type: application/json

{
  "actualDisbursementDate": "15 September 2026",
  "dateFormat": "dd MMMM yyyy",
  "locale": "en"
}
```

***

## 5. Delinquency & Recovery

If repayments are missed:

1. Aging buckets (1–30, 31–60, 61–90, 90+ days) update automatically.
2. The facility is flagged to the **Recovery Officer (Role `320016`)** for collections and legal recovery.