When a Loan Account has been approved, the loan is ready to be disbursed.
Users with “Set Disbursement Conditions” permission active can add and change the disbursement details on inactive loan accounts, allowing disbursement details definition when the loan application is posted. Users without “Set Disbursement Conditions” will not be able to change them, but will still be able to post the disbursement on the account. Disbursement details impacted by this permission are: disbursement fees, channel type and it's fields, anticipated disbursement date and first repayment date.
Disbursement details can currently be defined only for Dynamic and Fixed Term Loans and Payment Plans.
Before being disbursed, Disbursement details are displayed on the account overview, in the “Disbursement Details” section, until the loan is activated. The details can be changed after the account was created and a full audit trail is kept for changes made.
To disburse a loan:
- Click on Disburse.
- Choose a transaction channel.
- Choose the date of disbursement (leave blank if using the current date).
- Choose the first repayment date (leave blank if you want Mambu to calculate it automatically)
- Fill the additional transaction details fields (as applicable depending on the selected transaction channel).
- Review and select optional disbursement fees, if applicable.
- If there are optional disbursement notifications enabled, they will be shown at the bottom of the screen - check the email/SMS box to send the notification.
- Click Disburse.
After being disbursed, the account's status is automatically changed from "Approved" to "Active" and you can now log transactions on it.
The disbursal details will remain associated to the transaction and you can now easily have an overview of all disbursements and its reference numbers from the Transaction Views.
Disbursing a Loan to a Deposit Account
When performing a disbursement, it is possible to select one of the client’s active deposit accounts as the target/ recipient account for the loan amount. The available deposit accounts are listed at the end of the "Channel" drop-down list.
If you select a deposit account as the "Chanel" for disbursement, Mambu will perform a transfer from the loan to the deposit account, logging a Disbursement transaction on the loan account and a Deposit transaction on the savings account.
A few restrictions apply in this case, as follows:
- transfer are only allowed into accounts with a balance of 0 or greater (not when an account has an overdraft)
- transfers are not allowed into fixed deposit accounts
If the Loan was disbursed into a deposit account, this action can be undone by reversing the disbursement. which will then also reverse the deposit transaction.
To disburse to a deposit account, the user needs to have 2 permissions: "Disburse Loans" and "Make Deposit".
Reversing a Loan Disbursement
If a loan was disbursed by mistake and there are no other (non-reversed) transactions on the account, the disbursement can be reversed.
To do so, Click on More > Undo Disburse > Add a note if desired > Change State.
As a result, the loan account will change back into the "Approved" state.