How to configure post-disbursement fees on Lendsqr

What are post-disbursement fees?

Post-disbursement fees are charges that are applied to a loan after it has been disbursed, rather than deducted upfront from the loan amount. Instead of reducing what the borrower receives, these fees are added to the repayment schedule and collected over the life of the loan.

Lenders typically use post-disbursement fees in situations such as:

• Management or service fees that are billed periodically rather than as a one-time deduction at disbursement. This is common in products where the lender provides ongoing account management or monitoring services and wants to bill for them transparently over time rather than taking a lump sum at the start.
• Products where borrowers need to receive the full loan amount without any upfront deductions. In some lending contexts, particularly asset financing or salary advance products, the borrower needs the complete requested amount to fulfill a specific purpose. Deducting a fee at disbursement would leave them short.
• Fee transparency requirements where regulators or internal policy requires fees to be visible as line items in the repayment schedule rather than quietly netted off. Post-disbursement fees make every charge visible and attributable, which supports compliance and builds borrower trust.

Example: A borrower takes a ₦500,000 loan with a ₦10,000 management fee configured as a post-disbursement fee. The borrower receives the full ₦500,000. The ₦10,000 fee is added to the repayment schedule as a separate line item, spread across installments or charged at a specific point in the schedule. Here is what a simplified repayment schedule might look like:

Installment	Principal	Interest	Management Fee	Total Due
Month 1	₦45,000	₦5,000	₦2,500	₦52,500
Month 2	₦45,000	₦4,500	₦2,500	₦52,000
Month 3	₦45,000	₦4,000	₦2,500	₦51,500
Month 4	₦45,000	₦3,500	₦2,500	₦51,000

How post-disbursement fees appear to borrowers

Once configured, post-disbursement fees are automatically added to the loan repayment schedule. Borrowers will see the fee as a distinct line item alongside their principal and interest repayments. Every time the fee is collected, a transaction record is created in Lendsqr, giving both the lender and the borrower a clear, auditable trail of all charges.

Prerequisites

Before you begin, note that the only thing that needs to be in place is:

1. A Management type fee must be created on the loan product, with its Fee application set to Distribute across repayments.

This is covered in the configuration guide below.

Step-by-Step configuration

1. Login to the admin console

Sign in to your Lendsqr admin console. In the left navigation, under Back Office, expand Product management and select Loan Products.

2. Create or edit a loan product

• To create a new loan product, click New loan product.
• To update an existing product, click its Product actions menu and select Edit.

3. Create a management fee with the right fee application

Scroll down to the Fees section of the loan product form and click Add a fee, then Create a new fee at the top of the picker. In the Create Fee dialog, fill in the following fields:

Field	Description
Fee type	Select Management from the dropdown. This is the fee type that unlocks post-disbursement collection.
Name	Enter a clear, descriptive label such as “Management Fee” or “Service Charge.” This name will appear in the borrower’s repayment schedule and transaction records, so keep it professional and self-explanatory.
Description	Optional. Shown in the customer’s fee breakdown. Leave it blank to use a system-generated description.
Type	Choose Percentage if the fee is calculated as a fraction of the loan amount, Fixed if it is a flat figure regardless of loan size, or Hybrid for a combination of both.
Min Amount / Max Amount / Percentage	Enter the amount fields that appear for your selected Type.
Applicable To	The loan value the fee is calculated against, for example Principal.
Fee application	This is the field that actually controls post-disbursement behavior. Select Distribute across repayments to spread the fee across the repayment schedule as shown in the example above. The other option, Charge on every repayment, charges the full fee amount on every single repayment instead of spreading it once across the schedule.

Click Create Fee to save it. The fee is attached to this loan product immediately, there is no separate activation step.

For a detailed walkthrough of fee creation, see How to create a new fee for your loan product.

4. Save the loan product

Click Save Changes to save your changes before proceeding.

A related setting: Upfront Fee Payment

On the loan product’s Product settings tab, there is a separate toggle called Upfront Fee Payment. Its real description in the console reads: “This setting requires the borrower to pay the management fee at the beginning of the loan term, immediately after the loan is disbursed. It only applies if a Management fee type has been created for the loan product. This ensures that you recover administrative and processing costs upfront, thereby reducing your risk.”

In other words, this setting does the opposite of spreading the fee out: turning it on makes the management fee due immediately, at the start of the loan term, rather than distributed across later installments. Leave this toggle off if your goal is a genuine post-disbursement fee that appears gradually in the repayment schedule as shown in the example above. The Fee application field on the fee itself, not this product-level toggle, is what determines whether the fee is spread across repayments or charged in full on a repayment.

What happens after configuration

Once the Management fee is created with Fee application set to Distribute across repayments, it will be reflected in the repayment schedule for any new loan applications under that product.

Borrowers will see the fee as a separate line item in their schedule, distinct from principal and interest. Each time the fee is collected, a transaction record is automatically created in Lendsqr. This gives both the lender and the borrower a complete, auditable history of all charges applied to the loan. Lenders can view these records from the loan details page, and borrowers receive visibility through their loan summary and repayment breakdown.

It is worth noting that this configuration only applies to new loan applications created after the changes are saved. Existing active loans will not be retroactively affected.

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