Loan Products

Create and Access Tuku Pay Loan Products Such as Okoa Rent, Church Loans etc.

Overview

Tuku Pay provides a robust loan management system that allows apps to integrate loan products tailored to their user base. These loan products are powered by Fintech Sacco and other financial partners, ensuring flexibility and scalability. Apps can customize the loan experience for their users, including naming the loans, setting guarantees, and managing repayments.

Key Features of Loan Products

1. Custom Loan Products: Apps can select from a wide range of loan products and give them custom names that resonate with their users. For example, a church app might rename a "General Loan" as "Mission Loan."

2. Loan Accessibility:

   • Users who are members of the Fintech Sacco enjoy higher loan limits and tailored benefits.

   • Non-members can still access loans but at reduced limits.

   • Apps may enforce Sacco membership for accessing loans to improve user benefits.

3. Guarantor System:

   • Loans may require guarantees, depending on the selected product.

   • Guarantors can include:

     • Sacco Members: Their funds will be locked until the loan is repaid.

     • App Providers: Apps can guarantee their users' loans directly.

     • High-Level Ecosystem Participants: For example, landlords in real estate apps, tenants within the same ecosystem, or even the app owner.

4. Repayment Management:

   • Apps manage repayments through various endpoints.

   • Bulk SMS reminders for repayment schedules can be handled at the app level.

   • For critical events such as late payments, Fintech Sacco may send SMS alerts directly.

5. Deposit Requirements:

   • Apps can enforce monthly or daily deposit limits for their users to encourage saving.

   • The Sacco accepts any deposit amount but determines loan limits based on savings behavior and internal KPIs.

6. Loan Limits:

   • Loan limits are determined by the Sacco’s evaluation system, which uses internal KPIs, user savings, and app-provided data.

   • Additional factors like guarantors or app provider guarantees can influence the loan limits.

7. Webhooks:

   • Apps can set up webhooks to receive real-time updates on loan application statuses and repayment events.

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Endpoints

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1. Retrieve Loan Products

Apps can retrieve the list of loan products available to their ecosystem.

Endpoint:

http GET /api/v1/loans/products

Query Parameters:

Parameter	Type	Description
app_id	string	The unique identifier for the app.
user_type	string	Filter products by user type (e.g., "church", "tenant").

Response:

{
  "success": true,
  "data": [
    {
      "id": "product_123",
      "name": "Custom Loan Name",
      "default_name": "General Loan",
      "description": "Loan description tailored to user needs.",
      "max_amount": 500000,
      "interest_rate": 5,
      "repayment_period": "12 months",
      "requires_guarantor": true,
      "customizable": true
    }
  ]
}

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2. Apply for a Loan

Allow users to apply for a specific loan product.

Endpoint:

http POST /api/v1/loans/apply

Request Body:

Field	Type	Required	Description
app_id	string	Yes	The unique identifier for your app.
product_id	string	Yes	The ID of the loan product.
user_id	string	Yes	The ID of the user applying for the loan.
amount	number	Yes	The loan amount requested.
repayment_plan	string	Yes	Selected repayment plan (e.g., "6 months").
guarantor_id	string	Optional	ID of the guarantor (if required).

Response:

{
  "success": true,
  "message": "Loan application submitted successfully.",
  "data": {
    "application_id": "loan_app_789",
    "status": "pending"
  }
}

---

3. Retrieve Loan Status

Check the status of a loan application.

Endpoint:

http GET /api/v1/loans/status/{application_id}

Response:

{
  "success": true,
  "data": {
    "application_id": "loan_app_789",
    "status": "approved",
    "approved_amount": 100000,
    "disbursement_date": "2024-12-20",
    "repayment_due": "2025-06-20"
  }
}

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4. Manage Loan Repayments

Submit repayments for loans.

Endpoint:

http POST /api/v1/loans/repay

Request Body:

Field	Type	Required	Description
app_id	string	Yes	The unique identifier for the app.
application_id	string	Yes	The ID of the loan application.
amount	number	Yes	The repayment amount.
payment_method	string	Yes	Payment method used (e.g., "Mpesa").

Response:

{
  "success": true,
  "message": "Repayment submitted successfully."
}

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5. Webhook Setup

Apps can configure webhooks to receive updates on loan-related events such as application status changes and repayment notifications.

Webhook Payload Example:

{
  "event": "loan_status_updated",
  "data": {
    "application_id": "loan_app_789",
    "new_status": "approved"
  }
}

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Additional Notes

1. Guarantor’s Role:

   • Funds for the guarantor are locked, preventing withdrawals or further loan applications until the loan is fully repaid.

   • Notifications are sent to guarantors when they are linked to a loan application and they approve withing the app ecosystem or Fintech Sacco App.

2. Default Handling:

   • For delayed payments, the guarantor may be contacted, and their funds could be used to offset the balance.

3. Customizable Loan Names: Apps can personalize loan product names for better alignment with their ecosystem while Tuku Pay handles backend standardization.

4. Loan Repayment Defaults:

   • App-level notifications for repayments (e.g., Bulk SMS) are preferred.

   • Fintech Sacco handles critical notifications for late payments or escalations.