Process Loan Disbursement

Once a loan account has been approved, the loan can be disbursed by the loan officer or any user with set permissions. The loan disbursement date is set when creating a loan account. However, the date can be modified during loan disbursal. Where there is a modification, the set repayment schedule is updated.

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Note

Loan disbursal can only be done once. Ensure the full loan amount is disbursed.

When performing a disbursement, you have the option to select either:

Disbursal to a linked savings account (Recommended)

We highly recommend disbursal to a linked savings account, which is the customer’s active deposit account added during the loan account creation. Selecting this option will enable journal entries to be automatically recorded. At disbursal, Woodcore will transfer the loan amount to the savings account, log a debit in the loan account, and credit the savings account

Note that, the savings account must be active at the time of disbursal.

Cash disbursal

Loan disbursal also allows for direct cash disbursal to the customer. Where this channel of disbursal is selected, Woodcore logs a debit to the loan account and credits the fund source account.

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Note

Only a loan with an approved status can be disbursed.

Loan disbursal changes the loan status from Approved to Active

To disburse a loan:

1. Select the approved loan account.
2. Click on the Take Action button.

3. From the list, select Disbursal and the disbursal type.

   i). Cash disbursal for direct cash disbursal to the customer.

   ii). Linked savings account for disbursal to customer’s savings account.

4. Fill in the required information and click the Submit button.

You will receive a pop-up notification confirming that the loan has been disbursed!!

Undo Disbursal

A loan disbursal can be reversed if the disbursal was mistakenly done. Where a disbursal is reversed, the accounting entries are also logged, we credit the loan account (Asset Account) and debit the savings account (Liability Account).

To undo loan disbursal:

1. Select the disbursed loan with Active loan status.
2. Click on the Take Action button.
3. From the list, select Undo Disbursal.
4. (Optional) Add a note and click the Submit button.

You will receive a pop-up notification confirming the loan disbursement has been reversed!!