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.
Our infrastructure and APIs simplify Loan Servicing.
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).
Make sure the user you want to issue loans for has
SEND-AND-RECEIVEpermissions 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.
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).
(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.
- Apply for the loan (learn more about our Loan Decisioning). 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-USnode 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.
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:
Can only occur when loan is created.
At any point.
Ability to issue Account & Routing Numbers Subnets
Count Towards Reserve Account Limit
Actually issued loans.
Issued credit lines, regardless if drawn or undrawn.
Ability to Terminate Loan
Yes. Deactivate One-Time Loan.
Yes. Terminate Revolving Loan*.
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.
Loans are nodes in our system. Please refer to Node Statuses to understand what a node is allowed to do and not to do.
Updated 5 months ago