Loan Decisioning

Pre-requirements

Platforms can filter to which of its users the option to apply for a loan will be offered to based in some decisioning criteria, we refer to this as pre-requirements.

Common examples will be the user been in the platform ecosystem for over six months or that they are part of the platform's premium service.

Although platforms can propose pre-requirements they will all have to be communicated in detail and be approved by Synapse. We will be checking for any direct or indirect discriminatory decisioning. Furthermore, if a platform wishes to make a change to its pre-requirements it will have to be first explained in detail and approved by Synapse for the same reasons.

Loan Decisioning

Base Loan Decisioning

At a base level, without touching the Custom Loan Rejections loans will be rejected if:

  • The loan type is
  • The user has no SEND-AND-RECEIVE permissions (which occurs when not all agreed KYC has been submitted or verified) or is a match in one of our sanctions lists click here for our guide on how to check for this.
  • Lending is not currently available for the user's CIP tag or user type.
  • The requested amount is above the defined maximum loan size of your platform.
  • The loan will put you over the limits of the amount (in dollar value) of loans we allow you to issue--which is dependent on your reserve amount.

Credit Score

The user's credit score can be included on the loan decisioning process described above.

If this is the case, you will alongside your PA define a minimum credit score for your users, or tiers of your users. Your PA will then incorporate this information in your spec sheet.

When a user applies for a loan we will perform a soft credit pull, if the user is below the defined minimum credit score it will be rejected, and if above it will be approved (assuming it passes all the base loan decisioning checks described above).

Custom Loan Rejections

Some use cases will benefit from having the option to reject a loan, for certain reasons, after the application process has started. For example, after the loan application started the platform receives from the user its income level and decides that it is too low. Because this information might be captured after the loan application process started it cannot potentially be a pre-requirement.

In this case, the platform will apply for the loan ( One-Time, Revolving and will put in the "extra" object of the payload "note":"ACCOUNT|TOOSHORT" or another other rejection reason from the table below.

The loan will be rejected and we will generate a Loan Rejection Notice (example found in the API response, that must be passed down to the user per regulation.

Table of Custom Loan Rejections

Loan Rejection Reason
Description

ACCOUNT|TOOSHORT

The user has not had an account long enough to be eligible for a loan

INCOME|INSUFFICIENT

The user's income is not sufficient enough to repay the loan

INCOME|NOINFO

There is not enough information on the user's income

INCOME|UNVERIFIABLE

The platform is unable to verify the user's income

Database of Delinquent Users

In the future, we are looking to build a database of delinquent users across our platforms and provide the option for rejecting loans for users who are part of that list.

Loan Decisioning


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