> For the complete documentation index, see [llms.txt](https://lendbox.gitbook.io/lendbox/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://lendbox.gitbook.io/lendbox/loans/creating-disbursing-a-loan.md).

# Creating/Disbursing a Loan

Creating a loan involves specifying the loan amount, repayment terms, applicable fees and penalties, and other necessary details to ensure complete documentation and proper tracking.

### Prerequisites <a href="#prerequisites" id="prerequisites"></a>

* A borrower profile must be created beforehand. If you haven't created a borrower yet, refer to the [**Creating a Borrower**](/lendbox/borrowers/creating-a-borrower.md) guide.
* Ensure that all relevant borrower files are attached and verified, as per your internal policies.

### Detailed Step-by-Step Guide <a href="#detailed-step-by-step-guide" id="detailed-step-by-step-guide"></a>

1. **Navigate to the Loans Section**
   * From your main navigation menu, select **"Loan Management -> Loans"**.
   * On the Loans page, click the **"Ad Loan"** button, typically found at the top right.
2. **Select a loan status**

   the loan status determines the current stage of the loan within your workflow and influences how it is managed and reported within the system.
3. **Select Borrower**
   * In the **"Borrower"** dropdown or search box, select the relevant borrower.
   * This association links the loan to the borrower’s profile and history.
4. **Enter Loan Details**
   * **Loan Amount:** Input the principal amount disbursed to the borrower.
   * **Interest Rate:** Enter the annual or periodic interest rate applicable for this loan.
   * **Loan Term:** Specify the duration of the loan, such as 6 months, 12 months, etc.
   * **Repayment Schedule:** Choose the frequency of payments—monthly, bi-weekly, weekly, or customized.
   * **Loan Product:** If you have any configured [loan products](/lendbox/loan-products.md), select from existing loan products, or customize terms such as repayment method, grace period, etc.
5. **Configure Fees**
   * **Standard Fees:** Add applicable fees such as processing fee, application fee, administration fee, or others.
   * **Fee Type:** Mention whether fees are fixed amount or percentage of the loan.
   * **Fee Amount:** Specify the exact fee value.
   * **Fee Schedule:** Decide if fees are deducted upfront or periodically.
6. **Configure Penalties**
   * **Late Payment Penalty:** Set the penalty amount or percentage for late payments.
   * **Grace Period:** Specify any grace period before penalties are enforced.
7. **Fill Additional Fields (Extras)**
   * **Collateral Details:** Describe collateral if applicable.
8. **Review & Confirm**
   * Double-check all loan parameters, fees, penalties, and borrower association.
   * Ensure that all required fields are correctly populated.
9. **Create Loan**
   * Click **"Save"** to finalize the loan application.
   * The system will then process and set the loan status to active or pending, based on your configured loan status.

### Post-Creation Actions <a href="#post-creation-actions" id="post-creation-actions"></a>

* The loan can now be monitored through its repayment schedule.
* You can generate reports, send automated reminders, or update the loan as [payments](/lendbox/loans/repayments.md) are made.