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

# Approve Collateral

This endpoint approves and records the collateral deposited by the borrower for a specific loan. It is typically called after the borrower transfers the required collateral assets, and the platform confirms the deposit amount. The approval is logged on-chain as part of the secured lending workflow.

**What it does:**

* Confirms that the borrower has deposited the required collateral
* Updates the loan status to reflect collateral approval
* Records the approval on-chain to maintain an immutable audit trail

**When to use it:**

* After receiving and verifying the borrower's collateral deposit
* Prior to disbursing the loan amount
* As part of collateral management and compliance procedures

## Request Body

The request body must include the loan identifier and the confirmed amount of collateral:

```json theme={null}
{
  "loanId": "0x5a0c0663a48e3abf16c7f0ee632b57da833e44e02a290fc0920ea2858da31f73",
  "collateralAmount": 1500
}
```

* `loanId`: The unique identifier of the loan.

* `collateralAmount`: The amount of collateral being approved.

## Response

* Returns a confirmation of success along with the blockchain transaction hash:

```json theme={null}
{
  "transactionHash": "0x5a0c0663a48e3abf16c7f0ee632b57da833e44e02a290fc0920ea2858da31f73"
}
```