Initiate an approval request when the loan applicant has a low credit score
Edition: Enterprise | Industry: Banking and Loan | Feature: Approval Process
Scenario
Noah Parker is a loan officer at a Boston-based finance firm that specializes in providing financial assistance to SMBs, individuals, and retailers. He receives hundreds of loan applications every day along with supporting documents and proofs, that he reviews and forwards to the subsequent teams.
If he notices any application with a credit score below 750, he sends the application to his immediate supervisor and managers for loan processing approval. Only upon approval it is sent for validation and loan disbursal. This process is time-consuming, and often the approval emails sent to the managers are inadvertently overlooked amidst the pile of other emails.
Requirements
- Applications with a credit score below 750 must be sent to three approvers—the senior agent, branch manager, and credit hub manager—in a sequential manner so that the branch manager doesn't receive the application until the senior agent approves it and so on.
- Upon receiving the first approval the Loan Stage field should be automatically updated to "Credit Score Evaluated"
- On second approval, the Loan Stage field should be updated to "Sent to Credit Hub"
- On final approval, the Loan Stage field should be updated as "Qualified for loan" and the loan agent must receive an e-mail from the final approver stating that the applicant is qualified for the loan.
- If any of the three approvers reject the application, then Noah and the other approvers must receive an e-mail stating the loan application has been rejected and the Loan Stage should be automatically updated as "Loan Rejected".
Solution
When to execute: Record Creation > Add Rule to this Process
Section | Field Name | Value to enter |
Rule criteria | Credit score | <750 |
Who should approve | - | 1. Senior agent 2. Branch manager 3. Credit hub manager |
| Actions on approval | Configure action upon each Approval: Update Fields > Loan Stage | Value for 1st Approval: Credit score evaluated Value for 2nd Approval: Sent to credit hub Value for 3rd Approval: Qualified for loan |
Actions on approval | Configure action upon final approval: Email notification | Loan qualified |
Actions on rejection | Configure action after rejection: Update field | Loan rejected |
Actions on rejection | Configure action after rejection: Email notification | Send email to > Everyone approved: Low credit score Please choose a template to send to the requester: Loan rejected |
Related Articles
Can I set an approval process based on a pipeline?
Yes, you can set an approval process based on the pipeline so that the sales agents can only perform actions if the deal is approved. Approval processes can be triggered on creation or edit of record. For example, based on pipeline a deal can be sent ...Setting up a follow-up routine to qualify leads for loan applications
Feature: Workflow Rule | Edition: Enterprise Scenario Michael Andrew is a loan officer who evaluates and authorizes loans to small and medium-sized enterprises, and self-employed individuals. A week back, his company announced about a "Smart ...FAQs on Approval process
1. What is an approval process? Approval processes allow organizations to automate the approval of various business activities. For example, an organization may need a senior member to approve sales orders, budgets, capital expenses, discounts, ...Associating Actions for Approval or Rejection
With each approval process, you can associate some actions such as adding a task, updating fields, sending email alerts, calling webhooks, etc. that will be executed on approval or rejection of a record. When you set multiple stages of approval that ...Walk Score for Zoho CRM
Walk Score helps users find apartments with a better commute, great nearby places, and transportation choices. For each address, Walk Score analyzes hundreds of walking routes to nearby amenities to generate scores for how easy it is to walk, bike, ...