The loan life cycle is the process involved in taking a loan, e.g., a mortgage loan, auto loan, etc. The first stage in the loan life cycle is the application stage. A loan life cycle officially begins when an individual or business submits his loan application to the bank or financial institution for approval. The loan application and disbursement flowchart here shows the entire process that begins with the document and application signing by the applicant. The team will later evaluate the document to sanction and disbursement. After the authorities verify the documents, the loan amount is then disbursed and credited to the settlement account of the borrower who draws the amount, uses it for the purpose for which it was taken.