Approving and disbursing a loan

A loan application moves through two steps before repayments begin: it is approved through your organization's approval workflow, and then it is disbursed. Disbursing the loan activates it, builds the repayment schedule and notifies the employee.

1. Loan Management — Open the Loan Management group in the menu.

2. All Loans — Then choose All Loans.

3. Filter by Status — Use the status dropdown to show only Approved loans if needed.

4. Disburse — In the Actions column, click the bank-note (disburse) icon on an Approved loan.

5. Confirmation — A confirmation appears showing the amount and loan number, and notes that disbursing creates the repayment schedule and notifies the employee.

6. Disburse — The loan activates, the repayment schedule is generated, and the employee is notified.

Approving a loan

1. When an employee submits a loan request, it appears in the Approvals inbox in the left menu (and under Loan Management > All Loans with the status Pending).
2. Open the request from the Approvals inbox, review the amount, tenure and any attached documents, and approve or reject it.
3. After approval, the loan's status changes to Approved on the All Loans page. If it is rejected, the status becomes Rejected.

Disbursing a loan

1. In the left menu, choose Loan Management > All Loans.
2. Find the loan — its status must be Approved. Use the status dropdown to show only Approved loans if needed.
3. In the Actions column, click the bank-note (disburse) icon.
4. A confirmation appears, showing the amount and loan number and noting that this will activate the loan, create the repayment schedule for the loan's tenure, and notify the employee.
5. Click Disburse to confirm.

What happens after disbursing

• The loan's status changes to Active.
• A repayment schedule is created with one instalment per month for the loan's tenure.
• If the loan is set to deduct from salary, monthly payroll deductions are scheduled — these appear in the Upcoming deductions report.
• The employee receives a notification.

Tips

• You can still edit an Approved loan (amount, tenure, start date, purpose, notes) before disbursing it — use the pencil icon in the Actions column.
• A loan can only be disbursed once. If a schedule already exists, the disburse action is not available.

Troubleshooting

• No disburse icon on a loan — the loan is not in the Approved state, or it has already been disbursed. Only Approved loans can be disbursed.
• There is no separate approve button on the All Loans page: approval happens in the Approvals inbox, through the loan approval workflow.