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Table of Contents (Online Help)

Automatic Loan Disbursement

This feature enables you to disburse several loans on the same date.

How do you disburse several loans on the same date?

To disburse loans automatically go to Loans/Automatic Loan Disbursements a screen like one below appears.

• Disbursement date: Enter the disbursement date e.g."31/05/2016".
• Approval Date: Select from the drop down box the start date of the period within which the loan approvals were made e.g. "31/05/2016" and in the "To" drop down box, select the date when the period should end e.g. " 31/05/2016" or tick the checkbox "All" all to consider all the approved loans.
• From Loan Number: Select the starting number of the range of loans you want to disburse e.g. "KA/000058" and in the "To" drop down box, select the ending number or select "All" for the system to consider all approved loans.
• Client type: Select the "Client Type" from the corresponding drop-down box, e.g. "Individual Client".
• Loan Type: Select the Loan Type, e.g. "Flat rate".
• Update dues: In the "Update Dues" drop-down box select the appropriate option for updating due dates for the loans with disbursement date different from application date.

Update due dates has the following options:

• Do not modify due dates: In this case, the installment dates will not be modified. The original due dates at application will be considered.
• Update due dates with the difference between application date and disbursement date: The installment dates are brought forward by the mentioned difference in the number of days. An option suitable for loans with short installment periods, e.g. daily, weekly, bi-weekly, four-weekly.
• Recalculate due dates based on current disbursement date: This option is suitable for longer installment periods, like monthly loans where the installment date is forwarded by a month.In case of loans on declining balance (See Loan type option i.e Amortization or Discounted), there is an extra option:
• Recalculate dates and amounts based on disbursement date: Since months  don’t always have the same number of days, the interest for loans on declining  balance may need to be recalculated (for declining balance amortization the  principal as well). 

Please note that recalculation will undo all previous modifications of the loan repayment schedule made at Loans/Loan application/Loan entry part 1. Also If at System/Configuration/Set Working Days you have opted for automatic modification of due dates based on working days of your institution, at this point the loan repayment schedule will be updated accordingly

• Voucher number: Enter here the payment voucher number e.g. "362514". This field can be made compulsory by ticking the option "Voucher number is compulsory at entry of transactions" under System/Configuration/Register Part 2. If  made compulsory, this box will appear in yellow colour.

• However, if you ticked the option "Receipt number should be used as voucher number" under System/Configuration/Receipts/General settings, this field will be read only and the system will generate the voucher numbers automatically that will be similar to the receipt numbers.

• Mode of disbursement: Select the mode of disbursement from the available options e.g "cash". The default disbursement option is defined at the menu System/Configuration/Loans .
• By Cash: Check this option and choose the MFI cash account from the drop-down menu if the disbursement is to be made by cash. Cash accounts must have been defined under System/Configuration/Cash Accounts and the default cash account of a particular LPF user defined under System/Configuration/users/Add a Users .
• By Cheque: Check this option to disburse loans by cheque. The following screen is displayed.

• Cheque comes from/goes to: From the drop down menu, select the MFI bank from which the loan amount will be drawn e.g. "Stanbic". You also have to make sure that the institution's bank accounts have been defined at the menu System/Configuration/Banks.

• Cheque number: Enter here the cheque number e.g. "100". .

• Cheque type: Select the cheque type here e.g local.

• Save: Click save to save the information.

• Please note that for disbursements by cheque with the option "Due dates have to be reported at cheque clearing" (see topic System/Configuration/Loans ) the repayment schedule will be updated not at the disbursement but at the cheque clearing.

• Transfer to client's savings : When you tick this checkbox, more options appear (See the image below):

• Savings Product: Choose from the drop-down menu the client's savings product where you want to transfer the loan amounts . Ensure that the savings accounts were created under Savings/Open Savings Account.

• Transfer to client's bank account: When you tick this checkbox, more options appear (See the image below):

• From A/c: From the drop down menu, select the MFI bank account from which the loan amount will be drawn e.g. "Stanbic"and in the To a/c, select the client's bank account to which the money will be transferred next e.g. "Barclays". The client's bank details should have been entered at registration under Clients/Individual clients/Personal Data.
• Create CSV File: This option enables you to create a CSV file similar to an excel file which will contain the client data and the loan amount disbursed. When you activate the checkbox another field Directory appears to enable you indicate the path where to save the file.
• 
• All loans This option comes ticked by default to enable you disburse all loans. However you can un-tick it and select only the loans you want to disburse.
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Note that some values in the grid such as "Loan number", "Client name", "Approval date", "Amount" etc. can not be changed. However others can be modified such as "Voucher number", "Cheque number", "Commission amount" and "Stationary fees" for each loan. Navigation in this table is done by using the "Tab" key and the scroll bar.

• Refresh:  Click on this button to update a given value in the grid after modification. For example, if you change the commission amount in the grid, you have to click on this button to effect the change.
• Reset: Click on this button to cancel ant modification done on any value in the grid.
• Save: Click on this button to disburse the loans. Loan Performer prompts you with a message asking whether you want to proceed with the disbursement (See the image below):

Click on "Yes" to proceed.

Click on Cancel to exit without disbursing the loans.

Related Topics

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