● Disburse a loan

● Reschedule a loan

● Write off

● Reject and close

● Close account with all repayments made

● Withdraw a loan application

● Edit a loan account

● Edit account's name or description

● Undo a write-off

● Undo a loan disbursal

● Undo a loan approval

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Disburse a loan

After approving the loan application, the loan is now ready to be disbursed. To disburse a loan, click on Disburse > choose the date of disbursement > if it's a flat interest loan, choose the first repayment date > click Disburse Loan.

After being disbursed the account automatically becomes active and you can now log any transactions against it.

Disbursal Method

When, for instance, the disbursal is made with a check it might be useful to associate a reference number to the transaction. These can later be used to create a report that associates each disbursal to the check reference numbers for bank reconciliation.

To add a check's reference number, click on Disburse > choose the option Check > add the reference number > confirm the other details and Disburse Loan.

The check number will remain associated to the transaction and you can now easily have an overview of all disbursements and its reference numbers from the Transaction Lookup.

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Reschedule a loan

There might be several reasons that require rescheduling a loan, such as unexpected events like a natural disaster that prevent the client from keeping up with the repayments, or a client who has been making timely repayments might just need more principal to allow them to invest in their profitable business. In cases like these, your organization can choose to Reschedule their loan account.

To do so, open the Account you want to reschedule > click on Close > Reschedule.

In the new window you'll see four different fields to fill in:

• Loan amount. By default the amount displayed here corresponds to the principal that was still due in the loan you're now rescheduling. This will also set the minimum amount that can be disbursed in the rescheduled account. It doesn't include fees or penalties from the other account.
• Interest Rate. By default, this will be the same interest rate that was being applied to the previous account.
• Number of Installments. Enter the number of installments for the rescheduled loan.
• New Term Start Date. This corresponds to the first repayment date of the reschelduled loan.

After you're done with all the changes click on Reschedule.

After entering the new terms you can see how the repayment schedule will look like by just clicking Calculate.

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Write off

If a client hasn't been able to repay the full amount of the loan and you decide to write off that account open the loan account > click on Close > Write Off.

You'll then be able to add any comments about, for instance, the reasons behind the write-off and click on Close Account.

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Reject and close

After evaluating a loan application you may decide that there are reasons to believe the client won't be able to pay back the loan, for example. In that case you can choose to reject the loan application as long as its state is Pending Approval or Partial Application.

To do so, open the account > click on Close > Reject.

You can then add a note about, for instance, the reasons for rejection > click on Close Account.

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Close account with all repayments made

When a client finishes repaying a loan, you will be able to close that loan account. this is not automatic in Mambu so that you have the chance to review the account and make sure everything is according to what's expected before closing it. To close a loan account open the account > click Close Account.

After closing the account, its state will change to Closed (Obligations Met) and stored in the client's profile.

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Withdraw a loan application

When a loan account is still pending approval or when its state is Partial Application, the client or your organization may decide to withdraw the loan application. To do so open the loan account > click on Close > Withdraw > add any notes about the reasons for the withdrawal > click on Close Account.

The account will be closed and this information will be stored in the client's profile.

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Edit a loan account

You can only edit loan accounts that are still pending approval. After they have been approved, you will only be able to change its name and description.

To edit a loan account you can either do it 1) through the Client's profile or 2) directly from the Account:

1. Open the client's profile > select the loan account you want to edit > click More Actions > Edit Account > make the changes > click on Save Changes.

 



 

2. Go to Accounts > Loan Accounts > All Loan Accounts or Accounts Pending Approval > select the Account > click More Actions > click on Edit Account > make the changes > click on Save Changes.

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Edit account's name or description

You can change a loan account's name or description at any point and regardless of the account's state.

To do so, open the loan account > click on More Actions > Edit Description > make the changes > Save Changes.

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Undo a loan disbursal

If you disburse a loan by mistake and need to undo the disbursal, open the loan account > click on More Actions > Undo Disburse > Change State.

Implications

• The account's state will be set to Approved again.
• All the repayments will be set to Pending
• An event will be logged in the transactions lookup as State Changed
• In case you have Accounting enabled, a disbursal reversal will be automatically logged in the Journal Entries.

You can only undo disbursals in accounts in the state Active or Active in Arrears and which have no repayments associated to it yet.

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Undo a write off

If by any mistake you write-off a loan, it's possible to undo this action. To undo a loan that has been written off, click on More Actions > Undo Write Off > Change State.

The account will go back to the active state and allow you to enter transactions again.

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Undo a loan approval

If you need to undo a loan approval that has been made by mistake, you can do it as long as you have the permission to Approve loan accounts.

To undo a loan approval, open the loan account > click on More Actions > Undo Approve > Change State.

Implications

• The account state will be set back to Pending Approval
• There will be a log for a state change transaction and another one for a pending approval activity. Both can be seen in th Transactions Lookup.

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