Disbursement Agent AI

Invoked when: loan is approved and sanction letter is issued, and disbursement is being prepared

• –Reads the sanction letter and generates the conditions precedent checklist — every condition the sanction letter specifies must be satisfied before disbursement: KYC completion, insurance policy assignment for mortgage loans, NOC from prior lender for refinancing cases, legal opinion on title for property loans, and any borrower-specific conditions added by the credit officer at sanction. Checks each condition against the document store and marks as satisfied or outstanding.
• –Checks sanction validity — whether the sanction letter is still within its validity period. A sanction that has lapsed requires re-approval before disbursement can proceed, regardless of how close to the original approval the current date is. No disbursement proceeds on a lapsed sanction.
• –For secured loans, verifies that the security creation documentation (equitable mortgage, registered mortgage, hypothecation, or pledge as applicable) has been executed and the charge has been registered in CERSAI — because disbursing on an unsecured basis against a secured sanction creates a security gap that cannot be remediated after the fact.

Invoked when: all pre-disbursal conditions are satisfied and the account needs to be verified before the payment instruction is prepared

• –Triggers a penny drop verification to the borrower's bank account — a real-time API call that confirms the account number and IFSC code are valid, that the account is active, and that the account holder's name matches the borrower's name on the sanction letter. A name mismatch or an inactive account stops the process immediately — the payment instruction is not prepared until the mismatch is resolved.
• –Prepares the payment instruction for the disbursement officer's authorisation: beneficiary account details (verified), IFSC, disbursement amount, payment reference (linked to the loan account number being created in CBS), and any tranched disbursement schedule if the loan is disbursed in stages.
• –Does not execute the payment. The payment instruction is submitted to the payment operations system where the human disbursement officer reviews the pre-disbursal check summary and authorises the transfer using their payment system credentials and authority.

Invoked when: disbursement is confirmed and the CBS loan account is created

• –Calculates the loan maturity date based on the disbursement date, tenure, and EMI schedule, and schedules the NOC (No Objection Certificate) generation workflow for the date the final EMI is received — creating a calendar entry in the document management system that triggers the NOC preparation workflow automatically at maturity, without requiring a manual flag from the borrower or operations team.
• –For secured loans, schedules the charge release workflow in CERSAI at the same maturity milestone — because the borrower is entitled to charge release on full repayment, and an unreleased charge that lingers after loan closure creates a legal encumbrance on the borrower's asset that LendingIQ has no right to maintain.