Lending Main Page

Product in Open Beta

This product has successfully progressed through closed beta and we believe it is ready for general customer use. We are finalizing product and reliability improvements to ensure all features will properly scale.

Introduction

Our lending products are compliance solutions which allow platforms to quickly issue and service short-term, unsecured fixed and revolving loans (similar to a line of credit or a credit card). Platforms are asked to fund their reserve account and are allowed to lend up to that Loan Reserve Amount (minus a discount to cover for potential liabilities such as ACH debit returns, which we define with the platform as we integrate, depending on the use case).

You will be able to define the loan APR (based on a defined non-predatory range), payment method, credit limit, a degree of custom loan decisioning criteria, and other details for loans on your platform. Please note, loans are considered unsecured because they are not backed by collateral.

Node Type: LOAN-US

Our infrastructure and APIs simplify Loan Servicing.

Steps to Issue a Loan

  1. Make sure your controls (what you are allowed to do in our system) allow for the specific type of loan you are interested in issuing (one-time or revolving).

  2. Make sure the user you want to issue loans for has SEND-AND-RECEIVE permissions and that the user is not a match in one of our sanctions lists click here for our guide on how to check for this.

  3. If you are going to issue the lent funds to an external account (i.e. an account outside of Synapse's ecosystem) make sure the external account or card is linked to our system (e.g. by linking an ACH account or linking a card).

  4. (Optional But Recommended) Prior to submitting the loan application, submit the prospective loan to the relevant loan preview API call. Previewing the loan first will inform you if the user will get rejected from the loan without actually applying for a loan. As loan rejections might be forwarded to Credit Bureaus, this also gives the end-user the ability to review the loan details and agreement (e.g. Sample Loan Preview PDF) before accepting the loan.

  5. Apply for the loan (learn more about our Loan Decisioning Here). For each loan you will be able to set an APR, Cap Amount, number of payments, and similar loan details. For more information look at the call request body. Please note, we will impose limits on values such as the APR and the cap amount learn more on our Loan Interest page.

    • One Time: Apply for One-Time Loan. Please make sure you defined a valid info.disbursement_node_id. As you won't be able to disburse one-time loan funds after loan creation (in that case you will need to deactivate the one-time loan and issue a new one).
    • Revolving: Apply for Revolving Loan. There is no need to define a disbursement node because the LOAN-US node will have a status of CREDIT-AND-DEBIT. To disburse the funds you will use a valid payment method, as you would for any other transaction between two nodes.

For disbursement of both types of loans you can select any of our payments types (with the exception of Checks and RDC). Please note, disbursements will be subject to the settlement and cutoff times of the chosen payment method.

Required KYC

Please note, KYC requirements will differ between individuals and business users, and might further vary depending on the use case and the nature of the user. For individuals we will at the minimum require:

Minimum KYC for One-Time Loans

Minimum KYC for Individuals

Base Documentation

Name, Date of Birth, Address, Email (if unverified: 2FA), Phone Number (if unverified: 2FA).

Minimum KYC for Revolving Loans

Minimum KYC for Individuals

Base Documentation

Name, Date of Birth, Address, Email (if unverified: 2FA), Phone Number (if unverified: 2FA).

Virtual Documents

Social Security Number (SSN) with W-9 Verification.

Physical Documents

US Government Photo ID (GOVT_ID,GOVT_ID_BACK)

Loan Add-On Products

Internally loans are very similar to account nodes. Please look at Account Comparison Table and Accounts Add-On Produts. The following add-on products are available for loans:

Comparison for One-Time vs Revolving Loans

Characteristic
One-Time
Revolving

Status

CREDIT

CREDIT-AND-DEBIT

Funds Disbursement

Can only occur when loan is created.

At any point.

Ability to issue Account & Routing Numbers Subnets

CREDIT Only

CREDIT Only

Lower

Higher

Count Towards Reserve Account Limit

Actually issued loans.

Issued credit lines, regardless if drawn or undrawn.

Ability to Terminate Loan

Note on Loan Termination for Revolving Loans

Please make sure to show the user the Loan Termination Adverse Action Notice (link found in the Terminate Revolving Loan call response). You can find more details about this on the Delinquency page.

Allowed APR & Cap Amounts

You will have the option to set each loan's APR and Cap Amount, which we limit to pre-set maximums. Please note that we won't allow for predatory rates. Click here to learn more about how APR works in our loans, and click here to learn more about the Cap Amount.

Sub-Resources

API Calls

General

One-Time

Revolving

Node Statuses

Loans are nodes in our system. Please refer to Node Statuses to understand what a node is allowed to do and not to do.

Status Codes for Synapse API Calls


Lending Main Page


Suggested Edits are limited on API Reference Pages

You can only suggest edits to Markdown body content, but not to the API spec.