The system states the borrower already has an active loan

A borrower can have only one active loan at a time, so the system stops a new application when one is already open. The deposits in the checking account already support the existing loan and can't be counted twice.

Symptom: The borrower is told they already have an active loan when they first begin their application and can't continue.

The borrower has an open line of credit or loan

They can apply again once the existing loan is paid off and closed. If they need more credit now, point them to your financial institution's other lending products.

The borrower thinks the loan is closed

1. In the management portal, open the Activity Archive.
2. Search for the borrower's loan.
3. Check whether it was fully closed and moved out of active status.
4. If the loan still shows as active in your loan data, that is what blocks the new application.
5. Update it in your core so the next daily import file reflects the closure.
6. Ask the borrower to revisit the loan site once you confirm the previous loan shows as closed in the management portal.

Note: If your financial institution wishes to allow an applicant to move forward even with an active loan, your management portal admin can use a Bypass button to allow the application to move forward (only an admin can see this option).

A joint account holder already has a consumer loan

For consumer loans: if one owner of a joint checking account has an active loan, the other owner can't use the same account to qualify for a second loan.