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Creating a loan in Agatabo is a structured five-step process that captures everything needed to calculate a repayment schedule, disburse funds, and maintain accurate books — all in a single workflow. Once you click Submit, Agatabo generates the installment schedule, creates all journal entries, and records the disbursement automatically. There is no separate disbursement step.
Before you begin:
  • You hold the loans:write permission.
  • The borrower exists as an organization user with a member role.
  • You know the loan amount, term, interest rate, and which interest calculation method to use.
  • The organization has sufficient cash in the selected bank account to cover the disbursement.
Most loan settings cannot be changed after creation. The interest rate, calculation type, installment type, and payment allocation order are locked once the loan is submitted. You can increase the principal or extend the period later via a loan modification, but you cannot change the fundamental structure. Plan carefully and consult Loan Rules Explained if you are unsure which settings to use.

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The 5-Step Wizard at a Glance

StepWhat You ConfigureEstimated Time
1. Basic InformationBorrower, principal, period, start date, purpose2 min
2. Loan RulesInterest rate, calculation type, installment type, allocation order, disbursement fees3–5 min
3. SecuritiesGuarantors, collateral, savings lien2–3 min
4. Bank DetailsDisbursing bank account, bank charges1 min
5. Review & SubmitFinal review and confirmation1–2 min

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Step 1: Basic Information

1

Open the Loans section

Click Loans in the left sidebar.
2

Start the wizard

Click Create Loan in the top-right corner. The Basic Information form opens.
3

Fill in the required fields

Enter the borrower, principal, period, and start date. See the field reference below.
4

Click Next

Proceed to Step 2: Loan Rules.

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Basic Information Field Reference

FieldDescriptionRequiredExample
Organization UserThe member receiving the loanYesJane Uwase
Principal AmountThe amount to disburseYes1,000,000 RWF
PeriodLoan duration in monthsYes24
Start DateDate the loan begins and funds are releasedYes2026-06-08
PurposeReason for the loan (for records and reporting)NoInventory for retail shop
First payment date is calculated automatically as exactly one month after the start date. A loan starting on 2026-06-08 will have its first installment due on 2026-07-08.

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Step 2: Loan Rules

This is the most consequential step. The choices you make here determine how much interest the member pays and how their payments are structured.
These settings are permanent. You cannot change the interest rate type, calculation type, installment type, or payment allocation order after the loan is created. If you are unsure, review Loan Rules Explained before proceeding.

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Interest Rate Configuration

FieldOptionsGuidance
Interest RateAny positive numberEnter the percentage (e.g., 5 for 5%)
Interest Rate TypeMONTHLY, YEARLYMost tontines use MONTHLY — members understand “5% per month” more easily
Interest Calculation TypeSIMPLE, COMPOUND, REDUCING_BALANCESee tabs below
Interest Payment TimingIN_ADVANCE, WITH_INSTALLMENTSWITH_INSTALLMENTS is standard; IN_ADVANCE is microfinance-style

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Interest Calculation Types

Interest is charged on the original principal for the full term. The interest amount does not change month to month.Formula: Total Interest = Principal × Rate × TermExample: 100,000 RWF at 5% monthly for 12 months
  • Total interest = 100,000 × 0.05 × 12 = 60,000 RWF
  • Total repayment = 160,000 RWF
Choose SIMPLE when: loans are short-term, amounts are small, and you want the simplest possible explanation for members.

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Interest Payment Timing

WITH_INSTALLMENTS (standard): The member receives the full principal in cash and pays interest as part of each monthly installment. IN_ADVANCE (microfinance-style): The total interest is deducted from the member’s savings account at disbursement. Installments repay principal only. The member must have sufficient savings to cover the interest charge before the loan can be created.

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Installment Configuration

FieldOptionsGuidance
Installment TypeEQUAL_PRINCIPAL, EQUAL_TOTALEQUAL_TOTAL is recommended for most loans
Payment Allocation OrderINTEREST_FIRST, PRINCIPAL_FIRST, PROPORTIONALINTEREST_FIRST is used by most tontines

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Installment Types

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Disbursement Fees (Optional)

If your organization charges a loan origination or processing fee, configure it here.
FieldOptionsDescription
Fee TypePERCENTAGE, FIXED_AMOUNTPERCENTAGE calculates the fee as a share of principal; FIXED_AMOUNT is a flat charge
Fee ValueAny positive numberE.g., 2 for 2% or 5000 for a flat 5,000 RWF
Deduct FromSavings, Disbursement cashDeducting from savings preserves the full cash disbursement; deducting from cash reduces what the member receives

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Step 3: Securities

Securities protect the organization if the borrower defaults. Add at least one security for any loan above your organization’s minimum threshold. The total security value must meet the configured coverage ratio (default: 100% of principal).
Select another organization user who agrees to cover a portion of the loan if the borrower defaults. The pledged amount is immediately blocked from the guarantor’s savings — they cannot withdraw or re-pledge it until the loan is repaid or defaulted.
  • Click Add Security → Guarantor.
  • Search for and select the guarantor by name.
  • Enter the amount they are guaranteeing.
Example: Marie pledges 300,000 RWF to guarantee half of Jean’s 600,000 RWF loan.
You can add multiple securities of different types to reach the required coverage. For example, a 1,000,000 RWF loan could be covered by a 400,000 RWF savings lien plus two guarantors pledging 300,000 RWF each.

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Step 4: Bank Details

Select the bank account that will disburse the funds and record any transaction fees charged by your bank.
FieldDescriptionRequired
Bank AccountThe account from which cash is released to the borrowerYes
Bank Charge AmountAny transaction fee charged by the bank (mobile money transfer fee, wire fee)No
Bank charges, if entered, are recorded as a bank charge expense and debited separately from the disbursement amount.

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Step 5: Review & Submit

The review page displays a complete summary of everything you have configured. Take a moment to verify every section before submitting — this is your last opportunity to catch errors. The summary includes:
  • Borrower name, email, account number, and current savings balance
  • Principal, period, start date, and purpose
  • Interest configuration and installment structure
  • Disbursement fees and their deduction method
  • All securities and their values
  • Bank account and bank charges
  • Calculated totals: total interest, total repayment amount, and net cash the borrower receives
1

Review every section

Confirm borrower, amount, interest settings, and securities are all correct.
2

Go back if needed

Use the back button to return to any previous step and make corrections.
3

Click Submit Loan Application

Agatabo creates the loan, generates the installment schedule, and disburses funds — all in one action.

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What Happens Automatically After Submission

  1. Installment schedule generated — all due dates and payment amounts are calculated and stored.
  2. Journal entries posted:
    • Dr LOAN_RECEIVABLE — principal amount
    • Dr INTEREST_RECEIVABLE — total interest (if paid WITH_INSTALLMENTS)
    • Cr CASH — disbursement amount (net of any cash-deducted fees)
    • Cr INTEREST_INCOME — total interest recognized
    • Cr DISBURSEMENT_FEE_INCOME — fee income (if applicable)
    • Dr BANK_CHARGE_EXPENSE / Cr CASH — bank charges (if applicable)
  3. Savings deductions applied (if configured) — disbursement fee and/or advance interest deducted from the borrower’s savings balance.
  4. Loan ledger account created — tracks the outstanding balance over the loan’s lifetime.
  5. Audit trail recorded — full loan details, timestamp, and creating user are logged.
  6. Member notification sent (if enabled) — borrower receives a loan confirmation.
  7. Dashboard updated — Portfolio Outstanding and cash balance reflect the new loan immediately.

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Common Issues

Agatabo cannot disburse more than the available balance in the selected bank account. Check Bank Accounts for the current balance, ensure all recent deposits have been recorded, and consider whether any pending disbursements have not yet cleared. If the loan amount exceeds available cash, reduce the principal or wait until more deposits are recorded.
The selected organization user may not have a member role, or your organization’s lending policy may block new loans while the member has an existing delinquent loan. Go to Organization Users, verify the user’s role, and check their active loan status. Resolve any outstanding issues before creating the new loan.
If the preview amounts are not what you expected, go back to Step 2 and review your interest calculation type and installment type settings. Consult Loan Rules Explained for expected outcomes with your specific configuration. If you have already submitted a loan with incorrect settings, contact your accountant — the loan cannot be deleted, but it may be possible to modify the terms or reverse it through adjusting entries.
The start date must fall within an open accounting period. If the period for the desired date is already closed, you must use a date in the current open period. Contact your accountant if backdating is truly necessary.