Disbursement Register and Documentation
Sanctioned is not disbursed, and the gap between the two is where most audit questions live.
Sanctioned on paper, paid in parts
A loan is sanctioned for three lakh. Two lakh goes out by transfer on the 8th, the rest in cash a fortnight later when the borrower brings the last document. The ledger shows one figure, the account shows another, and at audit nobody can produce the date the second part actually left.
What the register records
Sanctioned against disbursed
Both figures on the account, so a part-disbursed loan is obvious rather than assumed.
Each tranche
Date, amount and mode, whether it went by transfer, cheque or cash, with the reference.
Deductions at source
Processing fee, insurance, stamp and any earlier dues, shown so the borrower’s net is not a surprise.
Net paid to the borrower
The number they actually received, which is the one they will quote back to you.
Who authorised it
The officer who released it and the person who approved it, kept for audit.
First EMI date
Set from the disbursement date rather than from the sanction, so the schedule is right.
Documents held against the account
The signed agreement
Attached to the loan, not filed in a cupboard in another branch.
KYC as it stood
The identity and address proof accepted at the time, with their dates.
Security papers
Registration certificate, pledge receipt or property document, recorded with where the original sits.
Post-dated cheques and mandates
What was collected, how many, and which are still unused.
Photographs
The borrower, the guarantor and the asset where your process requires it.
What it prevents
Disbursing beyond sanction
The register will not let out more than was approved without a fresh approval on record.
A schedule from the wrong date
EMIs run from the day the money moved, so the first instalment is not a month out.
Missing documents
A loan cannot be marked fully disbursed while a required document is still outstanding.
Cash that is not traced
Every cash disbursement carries who paid it, who received it and against what.
Frequently asked questions
Can a loan be disbursed in more than one instalment?
Yes. Each tranche is recorded with its own date, amount, mode and reference, and the account shows sanctioned, disbursed so far and the balance still to be released.
Are processing fees and insurance shown separately?
Yes. Deductions at source are listed individually, and the net amount handed to the borrower is shown against them, so the figure they received and the figure sanctioned are both on the record.
When does the repayment schedule start?
From the disbursement date rather than the sanction date. Where a loan is released in tranches, you choose whether the schedule runs from the first or the final release.
Where are the signed documents kept?
Scanned copies are attached to the loan account, with a note of where the physical original is held. At audit the file and its papers are in the same place.
Can it stop over-disbursement?
Yes. Releasing more than the sanctioned amount needs a recorded approval, so the excess is a deliberate decision by a named person rather than a clerical mistake found later.
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