# How to Manage Loan Account Disbursement

Loan account applications that have been approved can be disbursed to a negotiable payment type (e.g., Cash, Check, M-Pesa) or to a saving account linked to the loan application. When a loan account is disbursed, its status changes from **Approved** to **Active**.

A disbursement made in error can be undone. When a disbursement is undone, the loan account status changes from **Active** to **Approved**.

{% hint style="danger" %}
When a loan is disbursed, Mifos x will check the Product Mix rules to ensure that the loan account being disbursed is allowed to be active with other active loan account types. If a conflict is identified, the loan account cannot be disbursed as long as the conflicting loan is active.
{% endhint %}

### **To disburse a loan account to a negotiable payment type**

Locate the loan account by navigating to it through the client or group that holds the loan account.

1. Select **Disburse** from the action bar.
2. Select the **Disbursed on** date from the calendar pop-up.
3. Accept the default **Transaction amount** or type a different amount less than the default amount.
4. Select **Payment type** from the list.
5. Click **+** to add payment details.

   a. Account#

   b. Check#

   c. Routing code

   d. Receipt#

   e. Bank#
6. Type any relevant notes.
7. Click **Submit.**

The loan account will be disbursed and the loan account status updated to **Active.**

### **To disburse a loan account to a saving account**

Locate the loan account by navigating to it through the client or group that holds the loan account.

1. Select **Disburse to Saving** from the action bar.
2. Select the **Disbursed on** date from the calendar pop-up.
3. Accept the default **Transaction amount** or type a different amount less than the default amount.
4. Type any relevant notes.
5. Click **Submit.**

The loan account will be disbursed and the loan account status updated to **Active.**

### To Undo a Loan Account Disbursement

Locate the loan account by navigating to it through the client or group that holds the loan account.

1. Select **Undo** **Disbursal** from the action bar.
2. Type any relevant notes.
3. Click **Submit.**

The loan account disbursement will be reversed and the loan account status updated to **Approved.**

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