> ## 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.

# Close Loan

This endpoint closes an active loan after all repayment obligations have been fulfilled. It finalizes the loan lifecycle, releases any encumbered collateral, and updates the loan status to "closed" on-chain for transparency and recordkeeping.

**What it does:**

* Confirms completion of the repayment schedule
* Releases any associated collateral held during the loan term
* Marks the loan as closed in the system and on-chain

**When to use it:**

* After the borrower has made the final repayment
* Once the final payment is validated and reconciled
* To formally complete the loan agreement and release collateral

## Request Body

The request body must include the loan identifier and the reference ID of the final repayment:

```json theme={null}
{
  "loanId": "0x5a0c0663a48e3abf16c7f0ee632b57da833e44e02a290fc0920ea2858da31f73",
  "refId": "REF123"
}
```

* `loanId`: The unique identifier of the loan to be closed.

* `refId`: The reference ID associated with the final repayment transaction.

## Response

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

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