What Is a Disbursed Amount A Simple Guide for Businesses
Many SMEs face surprises when the disbursed amount differs from their approved loan. Understanding what is disbursed amount and how it affects your cash flow and repayment plans is crucial to avoid unexpected challenges.
With credit disbursement to priority sectors reaching ₹42.73 lakh crores in 2024, an 85% rise over six years, more businesses are accessing loans to drive growth.
This article explains what is disbursed amount, how loan disbursement works, and factors influencing the final amount your business receives.
What Is a Disbursed Amount?
When a business loan is approved, the sanctioned amount is the total sum agreed upon. However, the disbursed amount is the actual money transferred to your account by the lender.
This amount can differ from the sanctioned figure due to factors like pending documentation, compliance checks, or lender policies.
For example, if you’ve been approved for a ₹10 lakh loan but only ₹9.5 lakh is disbursed due to pending compliance verification, your available funds will be ₹9.5 lakh.
Key Steps in Loan Disbursement Process
The loan disbursement process usually involves the following steps:
- Application and Approval: You submit your loan application along with necessary documents. The lender evaluates your creditworthiness, income, and financial stability before issuing a sanction letter.
- Acceptance of Terms: You review the sanction letter and agree to the loan terms by signing an agreement that covers the loan amount, interest rate, repayment schedule, and other details.
- Verification and Valuation: For secured loans, the lender verifies and values the collateral, whether its property or business assets, to ensure it sufficiently covers the loan.
- Compliance and Documentation Check: The lender verifies all collateral-related documents for accuracy and completeness.
- Disbursement of Funds: Once all conditions are satisfied, the lender transfers funds directly to your account or the relevant party, depending on the loan type.
However, at Recur Club, the entire process is streamlined and quick. You simply sign up, sync your financial software for automatic data sharing, compare curated offers from multiple lenders, and receive funds easily, often within just 48 hours.
Loan Disbursement In Action
MoveInSync, a Bangalore-based SaaS company, faced working capital challenges while scaling. Using Recur Club’s streamlined process, they completed due diligence in just two days and secured ₹10.64 Crores in debt capital.
Since then, MoveInSync has raised ₹13.14 Crores across six funding rounds, fueling a 300% revenue jump in FY 2023 and achieving operational breakeven.
Factors Affecting the Disbursed Amount
Several factors can cause the disbursed amount to differ from your sanctioned loan amount:
- Incomplete Documentation: Missing or incorrect documents can delay or reduce the amount disbursed.
- Compliance Requirements: Lenders ensure all regulatory and internal policies are met before releasing funds.
- Creditworthiness: Your credit score and financial health influence the final amount a lender is comfortable disbursing.
- Collateral Valuation: For secured loans, the value of collateral affects how much can be released.
- Partial Approvals: Sometimes lenders approve only part of the requested amount based on risk assessment.
- Fees and Charges: Processing fees, insurance, or other charges may be deducted before disbursal.
If you’re still unsure about the potential disbursed amount, use our Business Funding Calculator for a quick analysis. Simply enter a few details to estimate your potential loan amount, interest, repayment schedule, and other factors.
Conclusion
Understanding your disbursed amount is key to managing cash flow and driving growth for startups and SMEs. The funds you receive affect how well you can operate and expand.
At Recur Club, we’ve disbursed over ₹2500 Crores in capital funding to businesses like yours in less than 48 hours. Just recently, we helped CollegeDekho secure ₹40 Crores quickly, enabling them to accelerate their growth without delay.
- Access to 150+ bespoke lenders
- Over 15 credit structures
- Dedicated capital experts guiding you through every step
- Transparent pricing with a full cost breakdown
.png)
