Written by Modulr | Jul 24, 2025 11:00:00 PM
Loan disbursement refers to the process of providing approved loan funds to a borrower. This can be done through various methods, including direct bank transfers, cheques, or prepaid cards and represents one of the two payment-specific elements of loan origination or creation, the other being repayment or collections. Originations can be automated and occur instantly at point-of-sale, especially in fintech environments. Often, disbursement speed is a key consideration for which payment method to choose, however the size of the payment and associated fees are important as well.