What does “settling” or “closing” a loan mean?
Settling (or closing) a loan means ending the loan before its scheduled end date because the customer has fully repaid the principal. During this process:
Any unpaid interest and fees are permanently written off.
The loan status changes to “Settled.”
No further payments will be required from the customer on that loan.
This is typically done when a customer makes an early lump-sum repayment, and you want to close the loan immediately, including waiving any remaining interest or fees.
⚠️ Note: Closing a loan is irreversible. Once you close it, you cannot reopen or modify it.
When can you settle a loan?
You can only settle (close) a loan if:
✅ The entire principal has been fully repaid by the customer.
❌ If any principal remains unpaid, the system will show an error when you attempt to settle, requiring the principal to be cleared first.
How to Settle (Close) a Loan
Follow these steps on your admin console:
1️⃣ Follow the steps highlighted in this article to locate a loan you want to settle.
2️⃣ Click the more options icon (⋮) next to “Comments and Notes.”
3️⃣ Select “Settle Loan.”
A modal will appear explaining what will happen when the loan is closed.
4️⃣ Review the details carefully to ensure you are ready to proceed, as this action cannot be undone.
5️⃣ Enter a reason for settling the loan in the provided field (e.g., “Early repayment by customer”).
6️⃣ Check the box acknowledging that this action is irreversible.
7️⃣ Click Submit. The system will show a review page summarizing the action.
8️⃣ Click Confirm to finalize the settlement.
9️⃣ Notifications sent automatically:
The customer will receive an email confirming the loan has been closed.
The admin will also receive an email for record-keeping.