Purpose
This article explains how Administrators or Finance teams can mark a loan as Disbursed once the approved loan amount has been released to the employee.
Marking a loan as disbursed ensures the system begins automatic EMI deductions from the defined start month and the loan reflects in payroll records and employee self-service portals.
When You May Need This
Use this option when:
- The loan has been approved and the payment has been made to the employee.
- You need to define the payment mode, EMI start month, and payment references.
- The loan needs to move from Approved to Disbursed status so payroll deductions can begin.
Step-by-Step Guide
- To mark a loan as disbursed, you must be logged in as an Administrator with authorized access to the Payroll module.
- Navigate to Control Panel → Payroll → Loan → All Loans.
- Locate the loan with the status Approved.
- Under the Action column, click Edit to open the loan details.
- Change the Status from Approved to Disbursed.
- Fill in the following fields:
- Payment Mode: Select the method used to release the funds (e.g., Bank Transfer, Cheque, Cash).
- Payment Details: Enter the transaction reference such as cheque number, NEFT/RTGS ID, or transfer note.
- EMI Start Month: Select the month from which the EMI deduction should begin.
- Click Update to save the changes.
- The loan status will now appear as Disbursed in the All Loans list.
Once a loan is marked as Disbursed, EMI deductions begin automatically from the selected EMI start month during payroll processing.
Where It Reflects
- The updated loan status (Disbursed) is displayed under Control Panel → Payroll → Loan → All Loans.
- EMI deductions will reflect in payroll for the defined EMI start month.
- Employees can view disbursed loan details and repayment schedules in their Self-Service Portal → Payroll → Loan section.
Pro Tips
- Always mark the loan as Disbursed only after confirming that the payment has been released to the employee.
- Verify that the EMI Start Month aligns with the payroll cycle to prevent skipped or duplicate deductions.
- Ensure Payment Details are accurate for audit and reconciliation purposes.
- Once a loan is disbursed, only the EMI amount can be updated. All other loan configuration fields are locked.
Related Articles
- Adding a Loan on Behalf of an Employee – Create and configure employee loan details.
- Loan Approval Workflow – Review and approve loan requests from managers and administrators.
- Recording Loan Repayments (EMI Transactions) – Record and track EMI deductions and repayments.