> ## Documentation Index
> Fetch the complete documentation index at: https://docs.synctera.com/llms.txt
> Use this file to discover all available pages before exploring further.

# Line of Credit (Beta)

> A Line of Credit (LoC) account is used to offer unsecured credit to customers of a fintech. It allows a borrower to utilize funds, as needed, up to a predetermined limit. The borrower may then repay the funds and borrow again as needed.

The `curl` examples assume you have set up `baseurl` and `apikey` environment variables. See [Base URL](/v1/reference/environments) and [Authentication](/v1/reference/authentication) for instructions. Some examples depend on identifiers generated by previous steps. These are indicated like `{APPLICATION_ID}`.

## Program Setup prior issuing Line of Credit

Your organization has to be given specific privileges to be able to issue line of credit. Please reach out to your contact at Synctera for more information.

## Creating a Line of Credit Product

To create a Line of Credit, the following steps have to be completed:

<Steps>
  <Step title="Create a person">
    As a precursor, the person set-up has to be completed ([Person API spec](/v1/docs/create-a-personal-customer)), including passing the KYC/KYB process via [KYC Verification API Overview](/v1/docs/kyc-kyb-verification)
  </Step>

  <Step title="Disclosures">
    These must be accepted by the personal or business customers (including the credit agreement). See the [disclosures section](#disclosures) for details.
  </Step>

  <Step title="Line of Credit Application">
    An LoC account cannot be created until the customer applies for a line of credit via the Application API. Overview [here](/v1/docs/credit-applications-guide)
  </Step>

  <Step title="Account Product">
    Define the interest rates charged on the LoC account. See the LoC Account API guide [here](/v1/docs/line-of-credit-accounts-guide).
  </Step>

  <Step title="Account Template">
    Setting up an Account Template specific for Line of Credit. See the LoC Account API guide [here](/v1/docs/line-of-credit-accounts-guide).
  </Step>

  <Step title="Line of Credit Account">
    Creation of the LoC account. See the LoC Account API guide [here](/v1/docs/line-of-credit-accounts-guide).
  </Step>

  <Step title="Adverse Actions">
    If a LoC application is denied, adverse action reasons need to be sent to the personal customers (optional for business customers) and the adverse actions ID needs to be included in the LoC application when the application status is marked as `CREDIT_DENIED`. See the Adverse Actions API spec [here](/v1/reference/createadverseaction).
  </Step>
</Steps>

### Disclosures

As the application & the accounts are being created FinTech has to inform Synctera of the Disclosures acknowledged by the applicant. Specifically for Line of Credit, the required disclosures include:

At the time the Application is created

1. E-Sign
2. Privacy Notice
3. USA Patriot Act Notice
4. Owner Certification (for business customers)

Prior to the Account being Created

1. Account Terms & Conditions
2. ACH Authorization

Please see details for the Disclosures here - [Customer Disclosures](/v1/docs/record-disclosure-acceptance)