What is third-party disbursement?
Third-party disbursement on the Lendsqr admin console is a feature that allows a lender to disburse a loan amount into the bank account of a third party on behalf of the borrower. When a lender creates a loan product and enables third-party disbursements, the payment of the loan amount will go to the third party specified by the borrower during the loan application process, not the borrower.
When your users apply for a loan product that requires a third-party disbursement, they will be required to input the details of the third party such as name, address, email address, and account number in the loan application process. The details provided will be used by you to verify the beneficiary.
You can also view, add, and delete beneficiaries on the Lendsqr admin console. However, this feature is available for specific plans and subscriptions.
Read further: Introducing third-party disbursement: A game-changing feature for lenders
How to activate third-party disbursement for your loan product
To activate the this feature on a loan product, follow the steps below:
- On the Lendsqr admin console, navigate to the “Loan products” sub-tab which is under the “Product Management” tab, and select an existing loan product or create a new loan product.
- Once the loan product has been created and saved, proceed to edit the loan product and select the “Disburse To” tab of the loan product to be edited and set it to “Third-party”.
