Disbursing Loans

A loan repayment schedule is set up at the time of loan creation.  In addition to the amount of the loan repayment, the collection installment amounts may include MFI fees, penalties, and other adjustments. When a loan state is changed to Disburse to LO (or Approved, if Disburse to LO is not used by the HO), the loan can be issued to the client. The transaction is entered in Mifos through a Disburse loan link which is displayed on the loan details page once the loan is approved. Alternatively, disbursals can be entered in Mifos using the collection sheet entry.

Loan amounts are disbursed in full only.

The following details are captured when the loan is disbursed:

• Disbursal Date. By default, this is the date specified in the proposed disbursal date in the account details. If the date is modified during loan disbursal, the repayment schedule is regenerated accordingly. MFIs can configure a minimum and maximum number of days between the loan disbursal date and the loan repayment start date.
• Receipt ID and Receipt date
• Mode of payment for the disbursal, including interest, if interest is deducted at disbursement, and fees, if applicable

Miscellaneous fee or miscellaneous penalty charged to the account before disbursal is added to the first installment.

When the disbursal entry is made, the account activity is updated, the repayment dates in the repayment schedule is updated as per the date of disbursal, and the disbursal date is changed to the date entered by the user.

Transaction entries are updated with the loan amount, including interest and/or fees, and the status of the loan account is changed to Active in good standing.

The grace period starts when the client account reaches the Active in good standing state for the first time.