# Close a loan

Closing a loan prevents future purchases, draws, or advances on the account. Use this tool when a borrower requests to close their Line of Credit or when the account should no longer accept new activity. If the current balance is zero and there are no payments in processing, the account status changes to paid off immediately. If a balance remains, the account stays active until the balance is paid.

**Availability:** All clients
**Required permissions:** `loan:close`
**Loan status:** `active`
**Loan types:** Line of Credit, or installment loans with Multiple Advances

## Before you begin

- Closing an account cannot be reversed.
- If the account has an outstanding balance after closing, the borrower must continue making payments until the balance is paid off. If the balance is not resolved within a reasonable period, the account may be charged off.
- This tool is not available for standard installment loans. To end a standard installment loan, use [Cancel a loan](/servicing-operations/agent-only-tools/agent-tools-cancel) instead.


## Close a loan

1. From the agent-view Borrower Portal, open the loan and select **Loan options** > **Close**.
2. Select a **Close reason** from the dropdown.
3. Enter a **Close reason description** in the text area. This is required. If your company uses the `locLineClosed` communication template, this text may appear in the notice sent to the borrower. Write it as a complete sentence or paragraph.
4. Optionally select **Send notice to borrower** to email the borrower using the `locLineClosed` template.
5. If your company requires a Case ID, select a case from the **Case ID** dropdown. See [Global behaviors — Case ID requirement](/servicing-operations/agent-only-tools/agent-tools-overview#case-id-requirement).
6. Select **Close loan**.


If the balance is zero and no payments are processing, the loan status changes to `paidOff`. Otherwise, the account is marked as closed but remains in `active` status until the balance is resolved.

## Field reference

| Field | Description | Required | Values / Format |
|  --- | --- | --- | --- |
| **Close reason** | A category describing why the account is being closed. | Yes | Select: Requested by borrower, Inactivity, Terms, Technical issue, Fraud, Other |
| **Close reason description** | A detailed explanation of why the account is being closed. Used in borrower communications if a notice is sent. | Yes | Text area |
| **Send notice to borrower** | Sends the `locLineClosed` email to the borrower with the close reason description. | No | Checkbox |
| **Case ID** | The case associated with this action. | Conditional | Select from open cases. Required when `forceCaseIdOnAgentActions` is enabled. |


## Related pages

- [Agent-only loan tools](/servicing-operations/agent-only-tools/agent-tools-overview)
- [Cancel a loan](/servicing-operations/agent-only-tools/agent-tools-cancel)
- [Charge off, update details, and reverse charge-off](/servicing-operations/agent-only-tools/agent-tools-charge-off)