# Create a personal loan (V1 endpoints) The following shows you how to create a personal loan on the Pismo platform. For information about the loan lifecycle, see [Pismo lending lifecycle](https://developers.pismo.io/pismo-docs/docs/digital-lending-overview#pismo-lending-lifecycle). ## Personal loan A personal loan is a type of unsecured loan product offered for individual borrowers where the funds have no predestined use. ### Create personal loan product To create a personal loan product, use the [Create loan product](https://developers.pismo.io/pismo-docs/reference/createloanproduct) endpoint. The API request example includes these required fields. | Field | Description | | :----------------------------- | :------------------------------------------------------------------------------------------- | | `product_name` | The name of the loan product. | | `product_type` | The type of loan product. To create a personal loan product, use `PERSONAL`. | | `currency` | The currency the loan product uses. | | `collateral` | Shows whether there’s collateral involved on a loan product. For personal loans, use `none`. | | `repayment_calculation_method` | The repayment method the loan product uses. | | `interest_type` | Specifies whether the loan product uses simple or compound interest. | | `days_in_year_method` | The days in year method the loan product uses. | | `repayment_frequency` | The frequency of how often a borrower needs to repay a loan. | | `disbursement` | The disbursement method the loan product uses. | | `stages` | The loan interval details, such as interest rate and how often repayments occur. | ```json { "product_name": "Personal Loan Example", "product_type": "PERSONAL", "currency": "400", "collateral": "none", "loan_type": "fixed_rate", "repayment_calculation_method": "ei_reducing_balance", "interest_type": "simple", "days_in_year_method": "actual_actual", "repayment_frequency": { "method": "monthly" }, "disbursement": { "method": "simple" }, "stages": [ { "repayment_mode": { "type": "PRINCIPAL_AND_INTEREST" } } ], "rules": { "loan_amount": { "min": 2000, "max": 100000 }, "loan_term": { "min": { "value": 6, "unit": "month" }, "max": { "value": 36, "unit": "month" } }, "interest_rate": { "min": { "value": 6, "unit": "year" }, "max": { "value": 40, "unit": "year" } , "installment_number": { "min": 1, "max": 12 } } } ``` After you create the personal loan product, the API response returns the `product_id`. Use this ID to simulate a loan. ```json { "product_id": "5c355ddf-a2c6-4a8e-9661-f53a19fad264" } ``` ### Simulate the personal loan After you create the loan product, you can start offering personal loans to your borrowers. For example, when a borrower needs to cover an unforeseen expense, you can offer them a personal loan from [an existing loan product](https://developers.pismo.io/pismo-docs/reference/getloanproduct). To [offer](https://developers.pismo.io/pismo-docs/docs/digital-lending-overview#simulate-the-loan) a personal loan, use the [Simulate loan booking](https://developers.pismo.io/pismo-docs/reference/createsimulation) endpoint. This API request example includes these fields. | Field | Description | | :---------------------- | :---------------------------------------------------------------------------------------- | | `product_id` | The ID of a personal loan product. This is a required field. | | `loan_amount` | The total amount of the personal loan. | | `start_date` | The starting date of the personal loan. | | `stages` | The personal loan interval details, such as interest rate and how often repayments occur. | | `disbursement.due_date` | The date when to disburse the personal loan. | ```json { "product_id": "8753ee7e-d227-4bcf-bd10-af03afca738e", "loan_amount": 1000.00, "start_date": "2022-06-24", "stages": [ { "interest_rate":{ "value": 0.12, "unit": "YEAR" }, "period": { "value": 3, "unit": "MONTH" } } ], "disbursement": [ { "due_date": "2022-06-24" } ] } ``` After you simulate the personal loan, the API response includes the `loan_simulation_id`, which you use to identify the simulation when you book the loan. The response also includes the `repayment_schedule`, which shows the details of the loan schedule, and the `disbursement_schedule`, which shows the details of the loan disbursement. ```json { "loan_simulation_id": "ae401396-2438-4ff8-8894-27720057522c", "product_id": "8753ee7e-d227-4bcf-bd10-af03afca738e", "loan_amount": 1000.00, "outstanding_balance": { "principal": 1000.00, "interest": 20.07, "total": 1020.07 }, "total_payment_amount": 1020.07, "start_date": "2022-06-24", "days_in_year_method": "ACTUAL_ACTUAL", "repayment_calculation_method": "EI_REDUCING_BALANCE", "repayment_frequency": { "unit": "MONTH" }, "repayment_schedule": [ { "period": 1, "payment_amount": 340.02, "due_date": "2022-07-24", "principal_amount": 330.02, "interest_amount": 10.00, "fee_amount": 0.00, "balance": 669.98, "number_of_days": 30, "auto": false }, { "period": 2, "payment_amount": 340.02, "due_date": "2022-08-24", "principal_amount": 333.32, "interest_amount": 6.70, "fee_amount": 0.00, "balance": 336.66, "number_of_days": 31, "auto": false }, { "period": 3, "payment_amount": 340.03, "due_date": "2022-09-24", "principal_amount": 336.66, "interest_amount": 3.37, "fee_amount": 0.00, "balance": 0.00, "number_of_days": 31, "auto": false } ], "disbursement_schedule": [ { "date": "2022-06-24", "amount": 1000.00, "principal": 1000.00, "tax": 0.00, "fee": 0.00, "charge": 0.00 } ], "stages": [ { "interest_rate": { "value": 0.12, "unit": "YEAR" }, "period": { "value": 3, "unit": "MONTH" } } ] } ``` To find an existing personal loan simulation, use the [Get loan simulation](https://developers.pismo.io/pismo-docs/reference/getloansimulation) endpoint. This is useful if there’s a delay in booking a loan with the borrower. ### Book the personal loan After the borrower accepts the terms of the personal loan from the simulation, use the [Create loan booking](https://developers.pismo.io/pismo-docs/reference/registerloanbooking) endpoint to book the loan. This API request example includes these required fields. | Field | Description | | :------------------- | :--------------------------------------------------------------- | | `loan_simulation_id` | The ID of the simulated personal loan with the payment schedule. | | `account_id` | The ID for the account registered on the Pismo platform. | ```json { "loan_simulation_id": "ae401396-2438-4ff8-8894-27720057522c", "external_id": "LOAN_TRACKER_1", "account_id": 103614168 } ``` After you book the personal loan, the API response shows the `loan_id`. The `loan_id` is the identifier for the entire life of the loan. So, if you need to check or edit any details of the loan, use its loan ID. ```json { "loan_id": "5d9d9339-3b5e-4c33-b129-8155e4d4946b" } ``` ### Disburse the personal loan After the borrower agrees to book the personal loan, use the [Disburse loan](https://developers.pismo.io/pismo-docs/reference/disburseloan) endpoint. The interval between booking and disbursing a personal loan depends on your lending rules. This API request example includes these required fields. | Field | Description | | :--------------------- | :------------------------------------------------------------------------------------------------------------------------------------------- | | `disbursement_date` | The date to disburse the personal loan. You can find this date in the [loan simulation](https://developers.pismo.io/pismo-docs/docs/create-a-loan#simulate-the-personal-loan). | | `disbursement_amount` | The amount disbursed for the personal loan. You can find this amount in the [loan simulation](https://developers.pismo.io/pismo-docs/docs/create-a-loan#simulate-the-personal-loan). | | `disbursement_account` | The account on the Pismo platform where to disburse the personal loan funds. | ```json { "disbursement_date": "2022-06-24", "disbursed_amount": 1000.00, "disbursement_account": { "type": "INTERNAL", "account_id": 103614168 } } ``` After you disburse the personal loan, the API response includes the `disbursement_id`. This ID is the identifier that confirms the loan disbursement. ```json { "loan_id": "5d9d9339-3b5e-4c33-b129-8155e4d4946b", "disbursement_id": "c1eb9f28-e1c9-4705-b2b5-f986b3bc7455", "created_at": "2022-06-27T14:19:30.194249", "updated_at": "2022-06-27T14:21:00.318043", "product_id": "fb525f7e-4317-45da-84d5-ccb1b0da3f14", "disbursement_status": "PROCESSING", "loan_amount": 1000.00, "disbursed_amount": 1000.00, "disbursement_account": { "type": "INTERNAL", "account_id": 103296044 } } ```