# Loan

[[Source]](https://github.com/XRPLF/rippled/blob/develop/include/xrpl/protocol/detail/ledger_entries.macro#L524-L604)

Attention
Lending Protocol and Single Asset Vaults are disabled on Devnet. You have two options for testing these features:

1. Run `rippled` in [stand-alone mode](https://xrpl.org/docs/concepts/networks-and-servers/rippled-server-modes#stand-alone-mode) and enable `LendingProtocol` and `SingleAssetVault` in the [rippled.cfg file](https://xrpl.org/docs/infrastructure/testing-and-auditing/test-amendments).
2. Connect to the Lending Protocol-specific Devnet at `https://lend.devnet.rippletest.net:51234/`.


A `Loan` ledger entry defines the state of an on-chain loan agreement between a *Loan Broker* and a *Borrower*. It contains all the details of the loan, such as fees and interest rates. You can create a `Loan` ledger entry with the [`LoanSet`](/docs/xls-66d-lending-protocol/reference/transactions/loanset) transaction.

The `Loan` ledger entry is tracked in two [Owner Directories](https://xrpl.org/directorynode.html):

1. The owner directory of the *Borrower* on the loan.
2. The owner directory of the `LoanBroker` pseudo-account.


*(Requires the [Lending Protocol amendment](https://github.com/Tapanito/XRPL-Standards/tree/xls-66-lending-protocol/XLS-0066d-lending-protocol) )*

## Example  JSON


```json
{
  "LedgerEntryType": "Loan",
  "LedgerIndex": "E123F4567890ABCDE123F4567890ABCDEF1234567890ABCDEF1234567890ABCD",
  "Flags": "0",
  "PreviousTxnID": "9A8765B4321CDE987654321CDE987654321CDE987654321CDE987654321CDE98",
  "PreviousTxnLgrSeq": 12345678,
  "LoanSequence": 1,
  "OwnerNode": 2,
  "LoanBrokerNode": 1,
  "LoanBrokerID": "ABCDEF1234567890ABCDEF1234567890ABCDEF1234567890ABCDEF1234567890",
  "Borrower": "rEXAMPLE9AbCdEfGhIjKlMnOpQrStUvWxYz",
  "LoanOriginationFee": 100,
  "LoanServiceFee": 10,
  "LatePaymentFee": 5,
  "ClosePaymentFee": 20,
  "OverpaymentFee": 5,
  "InterestRate": 500,
  "LateInterestRate": 1000,
  "CloseInterestRate": 200,
  "OverpaymentInterestRate": 5,
  "StartDate": 1234567890,
  "PaymentInterval": 2592000,
  "GracePeriod": 604800,
  "PreviousPaymentDueDate": 1234587890,
  "NextPaymentDueDate": 1234597890,
  "PaymentRemaining": 12,
  "PrincipalOutstanding": 10000,
  "TotalValueOutstanding": 12000,
  "ManagementFeeOutstanding": 2000,
  "PeriodicPayment": 1000
}
```

##  Fields

In addition to the [common ledger entry fields](https://xrpl.org/docs/references/protocol/ledger-data/common-fields/),  entries have the following fields:

| Name | JSON Type | Internal Type | Required? | Description |
|  --- | --- | --- | --- | --- |
| `PreviousTxnID` | String | Hash256 | Yes | Identifies the transaction ID that most recently modified this object. |
| `PreviousTxnLgrSeq` | Number | UInt32 | Yes | The sequence of the ledger that contains the transaction that most recently modified this object. |
| `LoanSequence` | Number | UInt32 | Yes | The sequence number of the loan. |
| `OwnerNode` | Number | UInt64 | Yes | Identifies the page where this item is referenced in the owner's directory. |
| `LoanBrokerNode` | Number | UInt64 | Yes | Identifies the page where this item is referenced in the `LoanBroker` owner directory. |
| `LoanBrokerID` | String | Hash256 | Yes | The ID of the *Loan Broker* associated with this loan. |
| `Borrower` | String | AccountID | Yes | The account address of the *Borrower*. |
| `LoanOriginationFee` | Number | Number | Yes | The amount paid to the *Loan Broker*, taken from the principal loan at creation. |
| `LoanServiceFee` | Number | Number | Yes | The amount paid to the *Loan Broker* with each loan payment. |
| `LatePaymentFee` | Number | Number | Yes | The amount paid to the *Loan Broker* for each late payment. |
| `ClosePaymentFee` | Number | Number | Yes | The amount paid to the *Loan Broker* when a full early payment is made. |
| `OverpaymentFee` | Number | UInt32 | Yes | The fee charged on overpayments, in units of 1/10th basis points. Valid values are 0 to 100000 (inclusive), representing 0% to 100%. |
| `InterestRate` | Number | UInt32 | Yes | The annualized interest rate of the loan, in 1/10th basis points. |
| `LateInterestRate` | Number | UInt32 | Yes | The premium added to the interest rate for late payments, in units of 1/10th basis points. Valid values are 0 to 100000 (inclusive), representing 0% to 100%. |
| `CloseInterestRate` | Number | UInt32 | Yes | The interest rate charged for repaying the loan early, in units of 1/10th basis points. Valid values are 0 to 100000 (inclusive), representing 0% to 100%. |
| `OverpaymentInterestRate` | Number | UInt32 | Yes | The interest rate charged on overpayments, in units of 1/10th basis points. Valid values are 0 to 100000 (inclusive), representing 0% to 100%. |
| `StartDate` | Number | UInt32 | Yes | The timestamp of when the loan started, in [seconds since the Ripple Epoch](https://xrpl.org/docs/references/protocol/data-types/basic-data-types#specifying-time). |
| `PaymentInterval` | Number | UInt32 | Yes | The number of seconds between loan payments. |
| `GracePeriod` | Number | UInt32 | Yes | The number of seconds after a loan payment is due before the loan defaults. |
| `PreviousPaymentDueDate` | Number | UInt32 | Yes | The timestamp of when the previous payment was made, in [seconds since the Ripple Epoch](https://xrpl.org/docs/references/protocol/data-types/basic-data-types#specifying-time). |
| `NextPaymentDueDate` | Number | UInt32 | Yes | The timestamp of when the next payment is due, in [seconds since the Ripple Epoch](https://xrpl.org/docs/references/protocol/data-types/basic-data-types#specifying-time). |
| `PaymentRemaining` | Number | UInt32 | Yes | The number of payments remaining on the loan. |
| `PrincipalOutstanding` | Number | Number | Yes | The principal amount still owed on the loan. |
| `TotalValueOutstanding` | Number | Number | Yes | The total amount owed on the loan, including remaining principal and fees. |
| `ManagementFeeOutstanding` | Number | Number | Yes | The remaining management fee owed to the loan broker. |
| `PeriodicPayment` | Number | Number | Yes | The amount due for each payment interval. |
| `LoanScale` | Number | Int32 | No | The scale factor that ensures all computed amounts are rounded to the same number of decimal places. It is based on the total loan value at creation time. |


Note
When the loan broker discovers that the borrower can't make an upcoming payment, they can impair the loan to register a "paper loss" with the vault. The impairment mechanism moves up the `NextPaymentDueDate` to the time the loan is impaired, allowing the loan to default quicker. However, if the borrower makes a payment in the subsequent `GracePeriod`, the impairment status is removed.

##  Flags

  entries can have the following flags:

| Field Name | Hex Value | Decimal Value | Description |
|  --- | --- | --- | --- |
| `lsfLoanDefault` | `0x00010000` | `65536` | Indicates the loan is defaulted. |
| `lsfLoanImpaired` | `0x00020000` | `131072` | Indicates the loan is impaired. |
| `lsfLoanOverpayment` | `0x00040000` | `262144` | Indicates the loan supports overpayments. |


##  Reserve

`Loan` entries incur one owner reserve from the borrower.

##  ID Format

The ID of a `Loan` ledger entry is the [SHA-512Half](https://xrpl.org/docs/references/protocol/data-types/basic-data-types#hashes) of the following values, concatenated in order:

- The `Loan` space key `0x004C`.
- The [AccountID](https://xrpl.org/docs/references/protocol/binary-format/#accountid-fields) of the Borrower account.
- The `LoanBrokerID` of the associated `LoanBroker` ledger entry.
- The `LoanSequence` number of the `LoanBroker` ledger entry.