Loan Repayment
Overview
Loan Repayment – Business Overview
The Loan Repayment document is used to record and manage payments made by borrowers against an active loan within Dafater. It represents the actual collection of money from the customer and ensures that loan balances, repayment schedules, and financial records remain accurate and up to date.
In simple terms, Loan Repayment is the business record that confirms how much a borrower paid, when they paid, and how that payment was applied to their loan.
What Loan Repayment Is Used for in Business Operations
The Loan Repayment document supports daily loan servicing activities by:
- Recording customer payments against loans
- Allocating payments to principal, interest, penalties, or charges
- Updating the outstanding loan balance
- Tracking repayment history for each borrower
- Supporting financial reporting and audit requirements
It ensures transparency and control over loan collections and helps the business monitor repayment performance.
Prerequisites and Setup Requirements
Before using Loan Repayment, the following must be in place:
- A loan must already be approved and active
- The borrower’s account and loan agreement must exist in Dafater
- Repayment terms such as schedule, installment amount, and interest structure should be defined
- Cash, bank, or other payment collection methods must be set up
- Users responsible for collections should have proper access and authorization
Without these foundations, repayments cannot be accurately recorded or applied.
Typical Workflow and Business Process Fit
The Loan Repayment document fits into the loan lifecycle after disbursement:
Customer makes a payment
The borrower pays an installment or partial amount via cash, bank transfer, or other accepted methods.Loan Repayment is created
The collection officer or finance team records the payment using the Loan Repayment document.Payment allocation
The system applies the amount to interest, principal, or overdue charges based on business rules.Loan balance updates
Outstanding amounts and future dues are automatically adjusted.Confirmation and reporting
The repayment becomes part of the borrower’s repayment history and financial reports.
This process repeats throughout the loan tenure until the loan is fully settled.
Key Business Scenarios Where Loan Repayment Is Essential
The Loan Repayment document is critical in scenarios such as:
- Monthly or periodic installment collections
- Early or advance loan repayments
- Partial payments when a borrower cannot pay the full installment
- Collection of overdue or late payments
- Loan closure after final repayment
- Audit reviews and customer account reconciliation
Without accurate Loan Repayment records, loan balances and customer statements would be unreliable.
Important Considerations for Users
When working with Loan Repayment, users should keep in mind:
- Always verify the loan and borrower details before recording payment
- Ensure the payment date and amount match the actual collection
- Be careful when handling partial or advance payments, as they affect future dues
- Late or missed payments may include penalties that must be recorded correctly
- Once confirmed, repayments impact financial records and should not be changed casually
- Proper documentation helps resolve customer disputes and supports compliance
Summary
The Loan Repayment document is a core operational tool in Dafater for managing loan collections. It ensures accurate tracking of payments, maintains correct loan balances, and provides a clear repayment history for both the business and the borrower. Used correctly, it supports financial discipline, customer trust, and effective loan portfolio management.
Basic Information
- Module: Loan Management
- Document Type: Other
Fields
| Field Name | Label | Type | Required | Options | Description |
|---|---|---|---|---|---|
| against_loan | Against Loan | Link | ✓ | Loan | Reference loan against which this repayment is recorded in Dafater |
| applicant | Applicant | Dynamic Link | ✓ | applicant_type | Applicant making the loan repayment within Dafater |
| repayment_type | Repayment Type | Select | ✓ | Normal Repayment, Interest Waiver, Penalty Waiv... | Business reason or category for this loan repayment transaction |
| loan_disbursement | Loan Disbursement | Link | Loan Disbursement | Related loan disbursement linked to this repayment | |
| loan_adjustment | Loan Adjustment | Link | Loan Adjustment | Associated loan adjustment applied during repayment processing | |
| repaymentscheduletype | Repayment Schedule Type | Data | - | Repayment schedule classification used for this repayment | |
| applicant_type | Applicant Type | Select | Employee, Member, Customer | Type of applicant involved in the loan repayment | |
| loan_product | Loan Product | Link | Loan Product | Loan product under which the repayment is processed | |
| company | Company | Link | Company | Company entity recording the loan repayment in Dafater | |
| posting_date | Posting Date | Datetime | ✓ | - | Accounting posting date for this repayment entry |
| loan_restructure | Loan Restructure | Link | Loan Restructure | Linked loan restructure affecting this repayment | |
| clearance_date | Clearance Date | Date | - | Date when repayment amount is fully cleared | |
| rateofinterest | Rate Of Interest | Percent | - | Applicable interest rate at the time of repayment | |
| dayspastdue | Days Past Due | Int | - | Number of days repayment is overdue | |
| modeofpayment | Mode Of Payment | Link | Mode of Payment | Payment method used for loan repayment | |
| istermloan | Is Term Loan | Check | - | Indicates whether the loan is a term loan | |
| repayfromsalary | Repay From Salary | Check | - | Repayment amount deducted directly from salary | |
| processpayrollaccountingentrybasedonemployee | Process Payroll Accounting Entry based on Employee | Check | - | Create payroll accounting entries employee-wise for repayment | |
| is_npa | Is NPA | Check | - | Marks loan as non-performing asset | |
| iswriteoff_waiver | Is Write Off Waiver | Check | - | Indicates repayment relates to write-off waiver | |
| is_backdated | Is Backdated | Check | - | Repayment is posted for a past date | |
| due_date | Due Date | Date | - | Scheduled due date for the loan repayment | |
| pendingprincipalamount | Pending Principal Amount | Currency | Company:company:default_currency | Outstanding principal amount before this repayment | |
| interest_payable | Interest Payable | Currency | Company:company:default_currency | Interest amount due for the repayment period | |
| payable_amount | Payable Amount | Currency | Company:company:default_currency | Total amount payable including principal, interest, and charges | |
| totalchargespayable | Total Charges Payable | Currency | Company:company:default_currency | Total charges due along with repayment | |
| shortfall_amount | Shortfall Amount | Currency | Company:company:default_currency | Unpaid amount remaining after this repayment | |
| payableprincipalamount | Payable Principal Amount | Currency | Company:company:default_currency | Principal portion due for repayment | |
| penalty_amount | Penalty Amount | Currency | Company:company:default_currency | Penalty charged for delayed or defaulted repayment | |
| amount_paid | Amount Paid | Currency | ✓ | Company:company:default_currency | Actual amount paid in this repayment |
| repayment_details | Repayment Details | Table | Loan Repayment Detail | Breakup details of principal, interest, and charges paid | |
| reference_number | Reference Number | Data | - | External or internal reference number for repayment | |
| totalinterestpaid | Total Interest Paid | Currency | Company:company:default_currency | Total interest amount paid through this repayment | |
| totalpenaltypaid | Total Penalty Paid | Currency | Company:company:default_currency | Total penalty amount paid in this repayment | |
| unbookedinterestpaid | Unbooked Interest Paid | Currency | Company:company:default_currency | Interest paid but not yet booked in accounts | |
| unbookedpenaltypaid | Unbooked Penalty Paid | Currency | Company:company:default_currency | Penalty paid but not yet booked in accounts | |
| payable_charges | Payable Charges | Table | Loan Repayment Charges | Charge-wise breakup of amounts payable | |
| reference_date | Reference Date | Date | - | Date linked to the repayment reference | |
| principalamountpaid | Principal Amount Paid | Currency | Company:company:default_currency | Principal amount settled through this repayment | |
| totalchargespaid | Total Charges Paid | Currency | Company:company:default_currency | Total charges paid as part of repayment | |
| excess_amount | Excess Amount | Currency | Company:company:default_currency | Excess amount paid over payable value | |
| manual_remarks | Manual Remarks | Small Text | - | User-entered remarks for repayment clarification | |
| amended_from | Amended From | Link | Loan Repayment | Original repayment document being amended | |
| cost_center | Cost Center | Link | Cost Center | Cost center associated with the repayment accounting | |
| loan_partner | Loan Partner | Link | Loan Partner | Partner institution involved in the loan | |
| prepayment_charges | Pre Payment Charges | Table | Prepayment Charges | Charges applied for loan prepayment | |
| payment_account | Repayment Account | Link | Account | Account used to record repayment entry | |
| payrollpayableaccount | Payroll Payable Account | Link | Account | Payroll payable account for salary-based repayment | |
| penaltyincomeaccount | Penalty Income Account | Link | Account | Income account for recording penalty amounts | |
| loan_account | Loan Account | Link | Account | Loan ledger account affected by repayment | |
| bank_account | Bank Account | Link | Bank Account | Bank account receiving the repayment amount | |
| totalpartnerinterest_share | Total Partner Interest Share | Currency | Company:company:default_currency | Partner’s share of interest from this repayment | |
| totalpartnerprincipal_share | Total Partner Principal Share | Currency | Company:company:default_currency | Partner’s share of principal from this repayment | |
| loanpartnerinterest_rate | Loan Partner Interest Rate | Percent | - | Interest rate applicable to loan partner share | |
| loanpartnerpayment_ratio | Loan Partner Payment Ratio | Percent | - | Ratio used to split repayment with partner | |
| loanpartnershare_percentage | Loan Partner Share Percentage | Percent | - | Percentage share allocated to loan partner | |
| loanpartnerrepaymentscheduletype | Loan Partner Repayment Schedule Type | Data | - | Repayment schedule type defined for loan partner |
Child Tables
Repayment Details (Loan Repayment Detail)
| Field Name | Label | Type | Required | Options | Description |
|---|---|---|---|---|---|
| loan_demand | Loan Demand | Link | Loan Demand | Linked Dafater loan demand this repayment is applied against | |
| paid_amount | Paid Amount | Currency | Company:company:default_currency | Amount paid toward the loan demand in Dafater | |
| demand_type | Demand Type | Data | - | Classification of loan demand type for Dafater repayment allocation | |
| demand_subtype | Demand Subtype | Data | - | Sub-classification of loan demand for detailed Dafater tracking | |
| sales_invoice | Sales Invoice | Link | Sales Invoice | Related Dafater sales invoice associated with this loan repayment | |
| partner_share | Partner Share | Currency | - | Partner's share amount from this loan repayment in Dafater |
Payable Charges (Loan Repayment Charges)
| Field Name | Label | Type | Required | Options | Description |
|---|---|---|---|---|---|
| charge_code | Charge Code | Link | Item | Reference charge item applied to loan repayment | |
| amount | Amount | Currency | - | Charge amount added to loan repayment |
Pre Payment Charges (Prepayment Charges)
| Field Name | Label | Type | Required | Options | Description |
|---|---|---|---|---|---|
| charge | Charge Code | Link | Item | Select Dafater charge item applied for loan prepayment. | |
| amount | Charge Amount | Currency | - | Monetary amount charged in Dafater for prepayment processing. |
Permissions
| Role | Read | Write | Create | Delete | Submit | Cancel |
|---|---|---|---|---|---|---|
| System Manager | ✓ | ✓ | ✓ | ✓ | ✓ | ✓ |
| Loan Manager | ✓ | ✓ | ✓ | ✓ | ✓ | ✓ |
Related DocTypes
| DocType | Relationship | Module |
|---|---|---|
| Loan Demand | Linked from | Loan Management |
| Loan Restructure | Linked from | Loan Management |
| Process Loan Classification | Linked from | Loan Management |
| Sales Invoice | Linked from | Accounts |
| Account | Links to | Accounts |
| Bank Account | Links to | Accounts |
| Company | Links to | Setup |
| Cost Center | Links to | Accounts |
| Loan | Links to | Loan Management |
| Loan Adjustment | Links to | Loan Management |
| Loan Disbursement | Links to | Loan Management |
| Loan Partner | Links to | Loan Management |
| Loan Product | Links to | Loan Management |
| Loan Repayment | Links to | Loan Management |
| Loan Restructure | Links to | Loan Management |
| Mode of Payment | Links to | Accounts |