Disbursement requirement gates explained
Approval is not the same as disbursement. Between the two, Ustawi enforces requirement gates — conditions that must be satisfied before money can move — so a loan is never disbursed with its security or coverage still incomplete.
What a requirement gate is
A requirement gate is a pre-disbursement condition attached to a product. Even after a loan is fully approved, disbursement stays blocked until every applicable gate is green. This keeps the institution's exposure protected the moment cash leaves.
The usual gates
- Collateral perfection — for secured products, the collateral must be registered and perfected (its legal claim confirmed) before disbursement.
- Credit-life coverage — where a product bundles credit-life insurance, the policy must be active so the balance is covered from day one.
- Employer MOU — for check-off (salary-deduction) products, a live MOU with the borrower's employer must exist to authorise payroll deduction.
Clearing a blocked disbursement
If an approved loan will not disburse, the blocking gate is shown on the loan. Register and perfect the collateral, issue the credit-life policy, or confirm the employer MOU, and the disbursement becomes available. Which gates apply depends entirely on the product.
Separating them means a committee can approve the credit decision while operations completes the security paperwork — without either step being able to bypass the other.