Loan Disbursement
Loan disbursement is the process of releasing the approved loan funds from the lender to the borrower or directly to a third party, such as a seller or service provider, depending on the type of loan. This marks the stage where the borrower can access the funds for the intended purpose, such as purchasing a home, car, or funding a business. This is also the stage where the lender starts loan accounting in his system.
To access the Loan Disbursement, go to:
Home > Lending > Disbursement and Repayment> Loan Disbursement
1. Prerequisites
Before creating a Loan Disbursement, it is mandatory to create the following:
Loan
2. How to create a Loan Disbursement
Go to the Loan Disbursement List, and click on Add Loan Disbursement.
Enter the loan account number and the disbursement amount.
Optional user can also select the bank account ledger of disbursement or else the default one from Loan Product will be used
Save
3. Withholding Security Deposit
Optionally users can withhold one EMI as a security deposit while disbursing the loan, for this all the user has to do is enable the "Withhold Security Deposit" checkbox during the disbursement.
