Lending overview
This page explains how to create and manage loans using the Pismo Lending API. You use loan products to define how loans work, simulate loan terms, book the loan, disburse funds, and register repayments. The Pismo platform manages the entire lifecycle, including auto‑settlement.
For reference information on the Pismo Lending API, refer to the Lending API reference. For more information on configuring Lending within Control center, refer to Control Center > Lending configurations > Loan products.
The Pismo platform manages the creation, disbursement and repayment of loans. It does not originate loans. Contact your Pismo representative about arranging any required lending partnerships.
Lending journey
Use this section as the reference for the end-to-end lending journey in Pismo lending.
❶ Create the loan product. ❷ When a borrower asks for a loan, create a simulation to show loan terms. The simulation creates a payment schedule. ❸ After the borrower accepts the terms, book the loan. Booking confirms the payment schedule, validates loan product rules, and creates a loan ID. ❹ After booking, disburse the loan. ❺ When the borrower makes a payment, register the repayment. ❻ After all repayments are complete, the Pismo platform auto-settles the loan.
The following diagram illustrates how the Pismo platform manages the life of a loan.
Pismo loan management lifecycle
| Stage | Description |
|---|---|
| Simulate | Simulates loan repayments or equated monthly installment (EMI) amounts. |
| Book | Books the loan after underwriter approval. |
| Disburse | Credits funds to the customer account (internal or external) and collects charges. |
| Repay | Registers repayments based on your repayment process. |
| Settle | Auto-settles the loan after full repayment or carries a restructure in hardship cases. |
Key participants
Lending involves multiple participants with different responsibilities across the journey.
| Participant | Definition | Offer loans | Manage loans |
|---|---|---|---|
| Borrower | Person or organization that accepts funds and repays based on agreed terms. | N | Y |
| Lender | Institution or entity that defines products, approves loans, disburses funds, and receives repayments. | Y | Y |
| Regulator | Public or private authority that defines lending, disclosure, and consumer protection requirements. | N | N |
| Banking correspondent, loan broker, or originator | Intermediary that helps distribute or originate loan offers through lender partnerships. | Y | N |
In Pismo lending, the lender and authorized intermediaries can offer loans, while lenders manage loans after booking.
Updated about 3 hours ago