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

# Core concepts

> Learn Lender's vocabulary: loan products and versions, accounting profiles, applications, loan accounts, schedules, accrual runs, and Brazil-specific terms.

export const GAuditTrail = ({children}) => <Tooltip headline="Audit trail" tip="A chronological, immutable record of every action and transaction in the system — essential for regulatory compliance and dispute resolution." cta="See glossary" href="/en/glossary">
    {children}
  </Tooltip>;

export const GDoubleEntry = ({children}) => <Tooltip headline="Double-entry accounting" tip="Every financial movement is recorded as at least two operations: a debit from one account and a credit to another, ensuring the system always balances." cta="See glossary" href="/en/glossary">
    {children}
  </Tooltip>;

export const GLedger = ({children}) => <Tooltip headline="Ledger" tip="The core financial book that records all transactions, balances, and operations for an organization — the single source of truth for a business unit's finances." cta="See glossary" href="/en/glossary">
    {children}
  </Tooltip>;

Lender uses a precise vocabulary. Learn these terms once and every guide, event, and API operation reads the same way. The concepts group by domain: the **product catalog**, **origination**, **servicing**, **accounting**, and the **Brazil** extensions.

## Product catalog

***

### Loan product

A **loan product** is the template a loan is originated from — the named credit offering (a CDC line, a consignado line) that carries its terms, charges, and rate configuration.

### Product version

A product's terms change over time, so a loan product owns **immutable product versions**. Each version freezes the terms as they stood, and every originated contract traces back to the exact version it was created under. You **activate** the product to pin one version as its current version; existing loans keep the version they started on.

### Charge

A **charge** is a fee or cost component attached to a product (and inherited by the loans originated from it) — for example an origination fee. Charges are defined on the product and applied to the schedule.

### Floating rate

A product can reference a **floating-rate table** rather than a fixed rate. Lender resolves the applicable rate from the table at the moments the schedule requires it.

### Accounting profile

An **accounting profile** binds a product version to the <GLedger>ledger</GLedger>. It declares the posting rules — which <GDoubleEntry>double-entry</GDoubleEntry> legs fire for each accounting event (disbursement, prepayment, accrual) and which ledger organization and ledger the transaction books into. No accounting profile, no posting: the profile is how a product knows how to keep its books.

## Origination

***

### Loan application

A **loan application** is a request to originate a loan against a product version. It moves through an explicit lifecycle:

| Action       | Meaning                                                                                     |
| ------------ | ------------------------------------------------------------------------------------------- |
| **Submit**   | Create the application in a pending state.                                                  |
| **Approve**  | Accept the application; a decision record is kept.                                          |
| **Reject**   | Decline the application, with a decision record.                                            |
| **Withdraw** | Retract an application before it is decided.                                                |
| **Disburse** | Record the funds delivered; the disbursement facts and the resulting loan account are kept. |

### Schedule preview

**Schedule preview** computes the amortisation schedule for a prospective loan without originating anything — you preview the installments and disclosures before an application (or before approval) commits to them.

## Servicing

***

### Loan account

A **loan account** is an active, disbursed loan — the servicing view of a contract. It carries the live schedule, the transactions posted against it, its charges, and its audit history. (The read surface that lists and creates these is also called **servicing**.)

### Schedule and installment

The **schedule** is the ordered set of **installments** a loan account owes — each with its due date and its principal, interest, and charge components.

### Repayment and prepayment

A **repayment** records money received against the schedule; Lender allocates it across the outstanding installments, oldest first. A **prepayment** settles ahead of schedule, in whole or in part. You can **preview a repayment** to see the allocation before recording it.

### Reschedule

A **reschedule** rewrites the remaining schedule of a loan account — for example after a renegotiation.

### Reversal and replay

Corrections are never destructive. A **reversal** undoes a recorded transaction with a compensating entry; a **replay** re-derives account state from its event history. Both preserve a consistent, auditable timeline rather than editing the past.

## Accounting

***

### Posting intent

A **posting intent** is the durable record of "this financial event must book to the ledger." Lender persists the intent as part of the same transaction that changes domain state, then hands it to the ledger relay. The intent lives in the database, so it survives a restart.

### Accrual run

An **accrual run** computes interest (and other time-based amounts) accrued over a period across the book, producing the postings that recognize it. Each recognition covers one loan account, one month, and one amount kind. A repeated run does not accrue twice.

### Journal reference

A **journal reference** is the accounting identifier an accrual run records for itself. It is a separate value from the run's correlation id, which the reference record also stores. The journal reference id identifies one run exactly; a read by correlation id returns the most recent run that shares it.

## Jurisdictions

***

### Jurisdiction and profile

A **jurisdiction** is a market whose credit rules Lender knows about. Each jurisdiction supplies a **profile** — the rules, disclosures, and calendar that market requires. Lender ships a **generic** baseline profile and a deep **Brazil (BR)** profile; the active jurisdiction shapes which disclosures and endpoints apply. See [Jurisdictions](/en/lender/jurisdictions).

## Brazil terms

***

The Brazilian profile adds regulated concepts. The Portuguese terms are kept as-is, with a gloss — see the [Brazil regulatory pack](/en/lender/brazil-regulatory-pack) for how each is used.

| Term                       | Gloss                                                                                                                       |
| -------------------------- | --------------------------------------------------------------------------------------------------------------------------- |
| **CET**                    | *Custo Efetivo Total* — the total effective cost of credit disclosed to the borrower, covering interest, taxes, and fees.   |
| **IOF**                    | *Imposto sobre Operações Financeiras* — a federal tax on credit operations, previewable before origination.                 |
| **Capitalization consent** | The borrower's recorded consent to compound-interest (*juros compostos*) capitalization on the contract.                    |
| **PDD stage**              | *Provisão para Devedores Duvidosos* — the loan-loss provisioning stage a loan account sits in, with tracked transitions.    |
| **Credit descriptor**      | The SCR-style credit-operation descriptor for a loan account (the regulated operation profile).                             |
| **Prepayment quote**       | A quote for settling a loan account early. A Brazilian prepayment settles against one, within the quote's 24-hour validity. |
| **CCB**                    | *Cédula de Crédito Bancário* — the bank credit instrument for a consignado contract.                                        |
| **Averbação**              | Registration of the payroll deduction with the paying entity, so installments are withheld at source.                       |

## Next steps

***

<Card title="Lender in the platform" icon="sitemap" href="/en/lender/lender-in-the-platform" horizontal>
  See how these concepts book to the ledger and emit events.
</Card>

<Card title="Define a loan product" icon="layer-group" href="/en/lender/define-a-loan-product" horizontal>
  Put the product-catalog concepts to work.
</Card>