Mbanq offers a versatile and fully compliant loan product that can be configured to support a wide array of loan types such as unsecured term loans, secured term loans, automobile loans, mortgages, and short term Buy Now Pay Later loans. The main requirements are the same for all these loan types, with the various types of loans being a matter of configuration options.

Business Set Up

Once you have determined the type of loan you want to offer, there are a number of business action items that need to be completed to obtain approval for launching a loan program with Mbanq and a Partner Bank. These action items fall into the following main categories:

• Application
• Application for Loan program
• Compliance Review
  • Underwriting procedure and model
  • Credit Committee Charter
  • Marketing materials
  • Adverse Action Notices and other communication templates
  • TILA presentation
  • Collections policy
  • Application and origination screen flow
  • Servicing screen flow
  • Statement design
• Hardship and loan modification rules
• Submission to Partner Bank
• Approvals
• Fund the required lending capital and reserve accounts as per the agreements

Lending Capital and Reserve Account Funding

The capital that is to be lent to the consumer or business is the responsibility of the Platform. The Platform will have to establish and fund two main accounts:

• Lending Capital account - this is the lending capital that the Platform has to disburse for loans that are issued.
• Reserve account - this reserve account covers other delinquencies such as unpaid fees

Product Set Up

In order to enable customers to apply for a loan, your Platform will have to integrate with Mbanq's APIs.

• Begin by setting up the Loan product via the Mbanq console (Loan Product Setup)
  • Create a new loan product for your platform instance
  • Select whether the loan is secured or unsecured.
  • Set the interest rate and term ranges
• Build integrations with the following Mbanq APIs:
  • Loan Account (Create Loan Account) - create a loan account for a client borrower
  • View Loan Details (View Loan Details) - to be able to show them to the borrower.
  • Approve the Loan (Approve Loan) - after the loan has been reviewed and approved by the underwriting team.
  • Disburse the Loan Proceeds (Disburse Loan) - transfer the loan proceeds from the capital account to the client borrower's designated deposit account.
  • Collect a Payment (Make a Repayment) - collect a payment from the borrower.