# LoanSet

[[Source]](https://github.com/XRPLF/rippled/blob/develop/src/xrpld/app/tx/detail/LoanSet.cpp)

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/`.


Creates a new `Loan` ledger entry, representing a loan agreement between a *Loan Broker* and *Borrower*.

The `LoanSet` transaction is a mutual agreement between the *Loan Broker* and *Borrower*, and must be signed by both parties. The following multi-signature flow can be initiated by either party:

1. The borrower or loan broker creates the transaction with the preagreed terms of the loan. They sign the transaction and set the `SigningPubKey`, `TxnSignature`, `Signers`, `Account`, `Fee`, `Sequence`, and `Counterparty` fields.
2. The counterparty verifies the loan terms and signature before signing and submitting the transaction.


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

## Example  JSON


```json
{
  "TransactionType": "LoanSet",
  "Account": "rEXAMPLE9AbCdEfGhIjKlMnOpQrStUvWxYz",
  "Fee": "12",
  "Flags": 0,
  "LastLedgerSequence": 7108682,
  "Sequence": 8,
  "Data": "546869732069732061726269747261727920646174612061626F757420746865206C6F616E2E",
  "Counterparty": "rCOUNTER9AbCdEfGhIjKlMnOpQrStUvWxYz",
  "LoanOriginationFee": 100,
  "LoanServiceFee": 10,
  "LatePaymentFee": 5,
  "ClosePaymentFee": 20,
  "OverpaymentFee": 5,
  "InterestRate": 500,
  "LateInterestRate": 1000,
  "CloseInterestRate": 200,
  "OverpaymentInterestRate": 5,
  "PrincipalRequested": 10000,
  "PaymentTotal": 12,
  "PaymentInterval": 2592000,
  "GracePeriod": 604800,
  "SigningPubKey": "03C040CAC1E164B0E385D31E41447FE6B8960E0D202811CFDA08B55BA29E08C6B0",
  "TxnSignature": "30440220549D359F792E155D20B5E8B3423F0F844CCF7C86986EB85BE482908A55A7157D02207B464FFE57E75D9693BAC445540CF078E9E0B6452C917DE4D66F27918D32A170",
  "hash": "831EEFF19C980FC348E984625FE41AEB27301B0B072D4239A980E78B86B2515C"
}
```

##  Fields

In addition to the [common fields](https://xrpl.org/docs/references/protocol/transactions/common-fields/),  transactions use the following fields:

| Field Name | JSON Type | Internal Type | Required? | Description |
|  --- | --- | --- | --- | --- |
| `LoanBrokerID` | String | Hash256 | Yes | The ID of the `LoanBroker` ledger entry. |
| `Flags` | String | UInt32 | No | Flags for the loan. |
| `Data` | String | Blob | No | Arbitrary metadata in hex format (max 256 bytes). |
| `Counterparty` | String | AccountID | No | The address of the counterparty of the loan. |
| `LoanOriginationFee` | Number | Number | No | The amount paid to the `LoanBroker` owner when the loan is created. |
| `LoanServiceFee` | Number | Number | No | The amount paid to the `LoanBroker` owner with each loan payment. |
| `LatePaymentFee` | Number | Number | No | The amount paid to the `LoanBroker` owner for late payments. |
| `ClosePaymentFee` | Number | Number | No | The amount paid to the `LoanBroker` owner for early full repayment. |
| `OverpaymentFee` | Number | UInt32 | No | A 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 | No | The annualized interest rate of the loan, in units of 1/10th basis points. Valid values are 0 to 100000 (inclusive), representing 0% to 100%. |
| `LateInterestRate` | Number | UInt32 | No | A 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 | No | A fee 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 | No | The interest rate charged on overpayments, in units of 1/10th basis points. Valid values are 0 to 100000 (inclusive), representing 0% to 100%. |
| `PrincipalRequested` | Number | Number | Yes | The principal loan amount requested by the borrower. |
| `PaymentTotal` | Number | UInt32 | No | The total number of payments to be made against the loan. |
| `PaymentInterval` | Number | UInt32 | No | The number of seconds between loan payments. |
| `GracePeriod` | Number | UInt32 | No | The number of seconds after the loan's payment due date when it can be defaulted. |
| `SigningPubKey` | String | Blob | Yes | The public key used to verify the validity of the first signer's signature. |
| `TxnSignature` | String | Blob | Yes | The hex encoding of the digital signature for the first signing. |
| `hash` | String | Hash256 | Yes | The unique identifying hash of the partially-signed transaction. |


### CounterpartySignature Fields

An inner object that contains the signatures of the counterparty of the transaction. The object contains the following fields:

| Field Name | JSON Type | Internal Type | Required? | Description |
|  --- | --- | --- | --- | --- |
| `SigningPubKey` | String | STBlob | No | The public key used to verify the validity of the signature. |
| `Signature` | String | STBlob | No | The signature over all signing fields. |
| `Signers` | List | STArray | No | An array of transaction signatures from the counterparty. |


The final transaction must include either:

- Both the `SigningPubKey` and `TxnSignature` fields.
- The `Signers` field.


Note
This field isn't included in the `LoanSet` JSON, instead it's added to the stored transaction metadata after the counterparty submits the fully signed `LoanSet` transaction.

##  Flags

Transactions of the  type support additional values in the [`flags` field](https://xrpl.org/docs/references/protocol/transactions/common-fields#flags-field), as follows:

| Flag Name | Hex Value | Decimal Value | Description |
|  --- | --- | --- | --- |
| `tfLoanOverpayment` | `0x00010000` | 65536 | Indicates that the loan supports overpayments. |


## Error Cases

Besides errors that can occur for all transactions,  transactions can result in the following [transaction result codes](https://xrpl.org/docs/references/protocol/transactions/transaction-results):

| Error Code | Description |
|  --- | --- |
| `temBAD_SIGNER` | - The transaction is missing a `CounterpartySignature` field.- This transaction is part of a `Batch` transaction, but didn't specify a `Counterparty`. |
| `temINVALID` | One or more of the numeric fields are outside their valid ranges. For example, the `GracePeriod` can't be longer than the `PaymentInterval`. |
| `tecNO_ENTRY` | The `LoanBroker` doesn't exist. |
| `tecNO_PERMISSION` | Neither the transaction sender's `Account` or the `Counterparty` field owns the associated `LoanBroker` ledger entry. |
| `tecINSUFFICIENT_FUNDS` | - The `Vault` associated with the `LoanBroker` doesn't have enough assets to fund the loan.- The `LoanBroker` ledger entry doesn't have enough first-loss capital to meet the minimum coverage requirement for the new total debt. |
| `tecLIMIT_EXCEEDED` | The requested loan would cause the `LoanBroker` ledger entry to exceed it's maximum allowed debt. |
| `tecINSUFFICIENT_RESERVE` | The borrower's account doesn't have enough XRP to meet the reserve requirements. |