There are two methods of disbursements; Manual and automatic disbursement. Manual disbursement means someone on your team approves and sends out the loan manually after doing due checks. For example, your loan officer may confirm the borrower’s identity, income, and creditworthiness before releasing the funds. This method is ideal when you want more control over who gets a loan and when.
Automatic disbursement, on the other hand, happens without human involvement. As soon as the system approves a loan, it disburses the funds automatically to the customer’s account. This is useful for high-volume lending or fast-turnaround loans where speed and efficiency matter more than manual reviews.
Both methods have their strengths. Choose manual disbursement for tighter control, and automatic when you want speed and scale.
Read further: What lenders in Rwanda should look for in a loan management software.