• Version 1.0

• Prepared by: @Lorraine Sebata

• Approved by: @Nocyia Saunders

• Reviewed date: 2025-07-24

• Next review date: 2026-07-24

1. Purpose

This SOP details the process for disbursing approved loan proceeds to clients. The objective is to ensure that disbursements are accurate, timely, and fully compliant with internal controls and financial regulations. It also ensures proper documentation, transparency, and accountability in all loan disbursement activities.

2. Scope

This SOP applies to all loan products, including short-term personal loans and small business loans. It covers the entire process from the final approval of the loan application to the transfer of funds to the client's designated account. The procedures outlined in this document must be followed by all personnel involved in the loan disbursement process, including loan officers, accounting staff, and customer service representatives.

3. Related Policies

• Credit and Loan Policy

• Anti-Money Laundering (AML) Policy

• Customer Data Privacy Policy

4. Roles and Responsibilities

• Loan Officer: Responsible for verifying and submitting loan documentation for disbursement.

• Accounting Staff: Responsible for processing and releasing funds.

• Customer Experience and/or Loan Officers: Involved in client communication related to disbursements.

5. Procedure: Loan Proceeds (Disbursements)

5.1 Locate Approved Applications in the Loan Management System (LMS)

• 5.1.1 Access the Loan System

• 5.1.2 Go to the "Applications" tab

• 5.1.3 Use the filter or search options to display applications with the status "Disbursement Recommended" or "Payout Recommended"

5.2 Document Verification

• 5.2.1 Navigate to the specific client's application in the loan system

• 5.2.2 Go to the "Execute Documents" tab

• 5.2.3 Review the "Salary Deduction Form" to confirm it is correctly named, dated, signed, and appropriately stamped

• 5.2.4 Review the "Financing Agreement" to verify the accuracy of the monthly payment amount and the installment start date

• 5.2.5 Ensure that for top-up or consolidation loans, the dates reflect the updated obligations

• 5.2.6 For new loans, verify that the initial payment details and date are correctly calculated and documented

5.3 Submission for Disbursement

• Once all documents are verified and confirmed to be accurate, submit the application for disbursement

5.4 Batch Processing and File Preparation

• 5.4.1 Navigate to the "Disbursements" tab in the LMS

• 5.4.2 Select all applications that are ready for disbursement

• 5.4.3 Create and download a batch file to your computer

• 5.4.4 Open the downloaded file and format the spreadsheet according to required standards, including column headers, alignment, and currency format

• 5.4.5 Save the formatted file

5.5 Fund Release

• Send the formatted batch file to the designated person or department responsible for releasing funds

6. Documentation and Forms

• Salary Deduction Form

• Financing Agreement

• Loan Management System (LMS) records

• Disbursement batch file

7. Training

All personnel involved in the loan disbursement process will receive mandatory training on this SOP and related policies annually or upon significant revisions.

8. Review and Revision

This SOP will be reviewed annually by the Operations and Finance Departments to ensure its continued effectiveness, compliance, and alignment with business objectives.