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Loan Disbursement Management

Last Updated: October 27,2025 Document Version: 1.0 **Prepared for:**Emgage HRMS Implementation Team

Streamlined Fund Disbursement The loan disbursement module provides a comprehensive system for processing approved loan requests, calculating EMI schedules, and managing fund distribution to employees with complete transparency and tracking.

Disbursement Process Overview​

Alt text Efficient Fund Management The loan disbursement system offers structured control over fund release, enabling organizations to:

  • Process Approved Loans: Convert approved loan requests into active disbursements
  • Generate EMI Schedules: Automatically calculate installment breakdowns
  • Maintain Audit Trails: Track all disbursement activities with timestamps
  • Ensure Policy Compliance: Verify disbursements against policy limits and criteria
  • Provide Financial Transparency: Share clear repayment terms with employees

Loan Disbursement Interface​

Individual Loan Disbursement​

Alt text

!Disbursement Form Interface

Comprehensive Disbursement Processing Step-by-Step Disbursement Workflow:

  1. Employee and Policy Overview:

    • Employee Identification: View employee details (e.g., "IHS0039 - Adarsh Jain")
    • Policy Summary: Review loan policy terms including interest rates and limits
    • Salary Verification: Confirm salary details (CTC, Gross) for eligibility

  2. Disbursement Parameters:

    • Disbursed Amount: Enter the final approved loan amount (e.g., 40,000)
    • Disbursement Date: Set the fund release date (e.g., 27-Oct-2025)
    • Approved Tenure: Specify the repayment period in months (e.g., 12 Months)

  3. EMI Breakdown Generation:

    • System automatically calculates installment schedule
    • Displays principal and interest components separately
    • Shows running balance for each installment

EMI Schedule Calculation​

Alt text !EMI Breakdown Table

Automated Schedule Generation EMI Calculation Features:

  1. Installment Details:

    • Installment Number: Sequential payment identifiers
    • Principal Amount: Principal component of each EMI
    • Interest Amount: Interest component (e.g., ₹0.00 for interest-free loans)
    • Total EMI: Sum of principal and interest for each installment
    • Running Balance: Outstanding principal after each payment

  2. Calculation Accuracy:

    • Automatic rounding adjustments in final installment
    • Precise allocation between principal and interest
    • Clear visualization of repayment progression
    • Zero-balance confirmation at loan completion

Loan Request Management Dashboard​

Pending Approvals Overview​

!Loan Requests Table

Centralized Request Management Comprehensive Request Tracking:

  1. Request Information:

    • EMPLOYEE: Employee identification and names
    • LOAN TYPE: Category of loan (Personal, Car, Home, Gold loan)
    • LOAN POLICY: Quick access to policy details via "View Policy"

  2. Financial Details:

    • REQUESTED AMOUNT: Original amount requested by employee
    • DISBURSED AMOUNT: Actual amount approved for disbursement
    • REQUESTED TENURE: Employee's preferred repayment period
    • APPROVED TENURE: Final authorized repayment period

  3. Status and Progress:

    • STATUS: Current request stage (Pending, Approved, Disbursed)
    • SCHEDULES: Progress indicator (e.g., "0/12" for new disbursements)
    • APPROVAL STATUS: Visual indicators of approval progress

Status Lifecycle Management​

Request Status Workflow Progressive Status Transitions:

  • Pending: Initial submission awaiting review
  • Approved: Request approved and ready for disbursement
  • Disbursed: Funds released and repayment schedule active
  • Cancelled: Request withdrawn or rejected
  • Completed: Loan fully repaid according to schedule

Disbursement Actions and Operations​

Approved Loan Processing​

Alt text

!Disbursement Actions Interface

Streamlined Disbursement Execution Action-Oriented Workflow:

  1. Approved Request Identification:

    • Filter and view loans with "Approved" status
    • Identify ready-to-disburse loans with "Disburse" action button
    • Verify all approval checkmarks are complete (✔✔✔✔✔)

  2. Batch Processing Capabilities:

    • Process multiple disbursements simultaneously
    • Bulk approval and disbursement operations
    • Consistent application of disbursement policies

  3. Cancellation Management:

    • Cancel pending requests before disbursement
    • Maintain cancellation audit trails
    • Prevent disbursement of cancelled requests

Policy Compliance Verification​

Automated Eligibility Checks Pre-Disbursement Validation:

  • Salary Verification: Cross-check against CTC and gross salary
  • Experience Validation: Confirm employee meets experience criteria
  • Policy Limits: Ensure disbursement amounts within policy maximums
  • Active Loan Check: Verify employee doesn't exceed active loan limits
  • Tenure Compliance: Confirm approved tenure within policy ranges

Financial Transparency Features​

Employee-Facing Information​

Clear Communication Transparent Disbursement Details:

  • Policy Summary Display: Show employees their applicable loan terms
  • Salary-Based Eligibility: Demonstrate how eligibility is calculated
  • EMI Breakdown Visibility: Provide clear repayment schedule upfront
  • Interest Rate Clarity: Explicitly show interest terms (e.g., "0% - No interest")
  • Experience Consideration: Display how employee experience affects eligibility

Remarks and Documentation​

Administrative Controls Disbursement Documentation:

  • Remarks Field: Record special circumstances or notes
  • Audit Trail: Maintain complete disbursement history
  • Document Attachment: Link supporting documents to disbursements
  • Approval Records: Track who approved and processed each disbursement
  • Timeline Tracking: Record exact disbursement dates and times

Reporting and Analytics​

Disbursement Performance​

Comprehensive Reporting Disbursement Analysis Tools:

  • Disbursement Volume Reports: Track loan distribution patterns
  • Approval-to-Disbursement Timing: Measure processing efficiency
  • Loan Type Distribution: Analyze popularity of different loan products
  • Department-wise Analysis: Track disbursement patterns across organization
  • Policy Compliance Reporting: Monitor adherence to loan policies

*Next: Explore the Loan Recovery and Delinquency Management for tracking repayments, handling defaults, and managing recovery processes.

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