Close Loan

Operational Use Cases

• Administrative closure after payoff: Balance is zero and the lender wants to formally close the contract.
• Data migration cleanup: Loans imported as already paid now need a close command for audit purposes.
• Manual override: After adjustments or write-offs, staff may want to close the record immediately.

Supported on both Fixed and Dynamic repayment schedule engines. Interest recalculation has no special impact because the loan is already at zero.

Lifecycle Snapshot

flowchart LR
    A[Verify outstanding balance equals zero] --> B[Submit close command]
    B --> C[Loan status moves to Closed]
    C --> D[Send closure confirmations and release collateral]

API Playbook

1. Close the loan
   HTTP

   POST /v1/loans/{loanId}/transactions?command=close
   {
     "locale": "en",
     "dateFormat": "dd MMM yyyy",
     "transactionDate": "15 Jul 2025",
     "note": "Closed after settlement"
   }

   • No payment fields are required.
   • Embarc validates that the loan is Active (not already closed or written off) and has zero outstanding.

Tips for Operations Teams

• Prefer letting the repayment command auto-close the loan when possible; manual close is best for exceptional cases.
• Validation reminder: the close command rejects requests if any principal/interest/fees remain (error.msg.loan.close.balance.not.zero). Always run a payoff template first.

Baseline Example (Fixed Loan A)

After the payoff/foreclosure scenarios, balance is zero but status remains Active. To record a manual close:

Transactions created

Loan summary delta

Attempting this command with a non-zero balance returns error.msg.loan.close.balance.not.zero.

Verification checklist

1. GET /v1/loans/{id}?associations=loanSummary to confirm the status transition.
2. Ensure no further transactions are allowed after the close command unless you reopen the loan (via reversal).