diff --git a/app/api/services/provide_loan.py b/app/api/services/provide_loan.py
index ab48cca..214e58e 100644
--- a/app/api/services/provide_loan.py
+++ b/app/api/services/provide_loan.py
@@ -43,10 +43,9 @@ class ProvideLoanService(BaseService):
                     }), 400
 
                 # Save the loan details
-                loan_id = f"loan_{transaction.id}"
+                loan_id = f"loan_{transaction_id}"
                 
                 loan = Loan.create_loan(
-                    id=loan_id,
                     customer_id=customer_id,
                     account_id=account_id,
                     offer_id=validated_data.get('offerId'),
diff --git a/app/models/loan.py b/app/models/loan.py
index 0721bd2..81c86fd 100644
--- a/app/models/loan.py
+++ b/app/models/loan.py
@@ -7,7 +7,11 @@ from app.models.account import Account
 class Loan(db.Model):
     __tablename__ = 'loans'
 
-    id = db.Column(db.String(50), primary_key=True) 
+    id = db.Column(
+        db.Integer,
+        primary_key=True,
+        autoincrement=True,
+    )
     customer_id = db.Column(db.String(50), nullable=False)
     account_id = db.Column(db.String(50), nullable=False)
     offer_id = db.Column(db.String(20), nullable=False)
@@ -18,7 +22,7 @@ class Loan(db.Model):
 
 
     @classmethod
-    def create_loan(cls, id, customer_id, account_id, offer_id, principal_amount, status='pending'):
+    def create_loan(cls, customer_id, account_id, offer_id, principal_amount, status='pending'):
 
         # Check if customer exists
         is_valid = Customer.is_valid_customer(customer_id)
@@ -33,7 +37,6 @@ class Loan(db.Model):
 
         # Create and save the loan
         loan = cls(
-            id=id,
             customer_id=customer_id,
             account_id=account_id,
             offer_id=offer_id,