- 14 Feb 2022
- 2 Minutes To Read
Disbursing a Loan
- Updated On 14 Feb 2022
- 2 Minutes To Read
When a loan account has been approved, the loan is ready to be disbursed.
Users with the Set Disbursement Conditions (
SET_DISBURSEMENT_CONDITIONS) permission can add and change the disbursement details on inactive loan accounts. Users without this permission will not be able to change disbursement details, but will still be able to post the actual 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 a loan is disbursed, the disbursement details are displayed on the account overview, in the Disbursement Details section, until the loan is active. The details can be changed after the loan is created and a full audit trail is kept for changes made.
Disbursing a loan account
- Open the loan account.
- On the right hand side of the screen, select Disburse.
- Use the Channel dropdown to select 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. Select the email or the SMS checkbox to send the notification.
- Select 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 stay associated to the transaction and you can easily have an overview of all disbursements and their reference numbers under the Transactions tab.
Disbursing a loan to a deposit account
When performing a disbursement, you have the option to select one of the client’s active deposit accounts as the target or recipient account for the loan amount if the deposit product and loan product related to these accounts have the same accounting rules. The available deposit accounts are listed at the end of the Channel dropdown list.
If you select a deposit account as the channel 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:
- transfers are only allowed into accounts with a positive balance (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.
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, on the right-hand side of the screen, select More > Undo Disburse > Add a note (optional) > Change State.
As a result, the loan account will change back into the Approved state.