When creating a Credit Product, you can set up “multiple disbursements” in the "Disbursement Options" Settings. When this option is enabled, the loan is provided as a credit line rather than a traditional loan.
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Repayment Schedule: The repayment schedule for a credit line is planned for the amount already disbursed to the Customer. Unlike traditional loans with fixed disbursements, Customers you can draw disburse funds up to the approved limit as needed, and the repayment schedule will adjust accordingly.
Interest and Fees: Interest and fees are calculated based on the outstanding balance of the credit line. Borrowers only pay interest on the amount they have drawn, not the total approved limit.
Flexibility: Borrowers can repay the drawn amount and borrow again within the approved credit limit, providing greater flexibility in managing their finances.
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