- possibility to set up “Application expiry date" on the product level, for example “Application valid for…" or "expires after..." x working days
- an “Application Expiry Date" field would be populated automatically on the loan account when the loan account is approved (= approval date + x working days specified in the product)
- possibility to include “Application Expiry Date" in reporting (custom views)
- possibility to extend the expiry date manually on the loan account level (for example if the customer is given a few extra days to finalize the loan application process); ideally this could be defined as a min/ max days at product level
- ideally, when the Expiry Date passes, the account should be in an “Application Expired” state and should not be disbursable; but only Rejected/ Withdrawn / changed back to Pending Approval or Partial Application
The “Loan offer/ application expiry date" concept is used by many organizations to avoid keeping Approved accounts pending disbursement for long periods, because the applicant’s business circumstances might change in 1-2 months, thus affecting the loan’s risk. Most lending organizations have a “application review period" - e.g. if the approved loan was not disbursed 1 month after approval, the application is either rejected or sent back to approval.