💸Loan Disbursement & Repayment Now Allowed on Zero or Overdrawn Ledgers
We’ve made key updates to make loan processing more flexible and aligned with real-world SACCO and MFI operations.
🔧 What’s New
- Disbursement on Zero/Overdrawn Ledgers
You can now disburse loans even if the loan ledger has a zero balance or is overdrawn. This supports transfer-based and product loans. - Repayment on Zero-Balance Liability Accounts
Loan repayments can now be posted to liability accounts (e.g., supplier/payable) even if they have no funds. Useful for early recoveries or overdrafts.
✅ Why It Matters
- Enables product-based and internal fund loans
- Speeds up loan processing
- Removes unnecessary system restrictions
📈 Impact on Your Operations
These changes ensure:
- Smoother loan disbursement and repayment flows
- Accurate ledger tracking even in complex financial scenarios
- More responsive financial services for your members
📌 What You Should Do
- Continue with your usual loan processes—the system will now allow the above transactions by default.
- Inform your finance and loan officers about this change to avoid confusion when working with zero or overdrawn accounts.
- Reach out to support if you encounter any unexpected behavior or need clarification on specific use cases.
🛠️ How to Disburse a Loan Using Transfer Mode (Even on Zero or Overdrawn Ledgers)
To use the new feature:
- Go to the Teller section.
- Under Account Type, select Loan.
- Under Transaction, click Disbursement.
- In Accounting Details, select the loan account to be disbursed.
- In Transaction Mode, choose Transfer instead of Cash, Bank, or MNO.
- Select the appropriate Debit Account (e.g., a liability or payable account).
✅ This method allows you to disburse loans even if the loan ledger has a zero balance or is overdrawn, and supports posting repayments to liability accounts.
