Similar to signing a transaction for Liqd to place the NFT/asset into Escrow, a lender must approve an “allowance” for how much and what type of currency can be removed from their wallet.
A lender will be prompted (as they are funding the loan) to approve the “spending” of their cryptocurrency. This will happen EACH time a loan is generated unless you modify the transaction request from your wallet to a higher limit. This is done as a security mechanism to protect your assets.