> ## 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.

# Delinquent Loan

This endpoint marks a loan as delinquent when a scheduled repayment is missed. A delinquent loan is behind on payments but has not yet reached default. During delinquency, the platform may apply late fees, restrict new drawdowns, and notify the borrower.

**What it does:**

* Updates the loan status to "delinquent"
* Records the delinquency event on-chain
* Triggers delinquency-related workflows and notifications
* May initiate late-fee assessment and collections processes

**When to use it:**

* When a borrower misses a scheduled repayment and the grace period has expired
* To formally transition a loan from "current" or "funded" status to "delinquent"
* As part of automated payment monitoring systems when payments are overdue
* Before escalating to more severe collection actions or default proceedings
* When implementing risk management protocols for overdue accounts

**Prerequisites:**

* The loan must be "funded" or "current" (active repayment)
* The loan cannot be in "pending", "underwriting", "approved", or "closed" status
* Sufficient payment history must exist to determine delinquency
* The borrower must have missed at least one scheduled payment
* Any applicable grace periods must have expired

## Request Body

The request body must include the unique identifier of the loan to be marked as delinquent:

```json theme={null}
{
  "loanId": "0xbb7b779aaa59a095004ed8ce1ae0ceb9b15ce62375fb591eb2b9b435744f446f"
}
```

## Response

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

```json theme={null}
{
  "transactionHash": "0x652ac7f00ef9292077c46e9c94ab919aa7c301a7baca139f2b3fa15e032c7dfe"
}
```

## Notes on Delinquency and Escalation

* "Delinquent" means the borrower is late on one or more payments but the account has not been classified as defaulted.
* If the number of delinquent days exceeds your configured threshold and the borrower is unable to pay, the loan is typically escalated to default (see `POST /default`). This may initiate recovery actions such as collateral enforcement, account restrictions, and regulatory/reporting procedures as defined by your policy.