Repayment Schedule

Every loan in the system generates a repayment schedule -- a detailed plan that shows each installment due date, the amount to be paid, and how the payment is split between principal and interest. This page explains how to read, track, and manage repayment schedules.

What Is a Repayment Schedule

A repayment schedule is a month-by-month breakdown of how a loan will be repaid over its tenure. It is automatically generated when a loan is created and provides full transparency for both the finance team and the borrower.

The schedule includes:

The total number of installments
The amount due each month
How each payment is allocated between principal and interest
The remaining balance after each installment
The payment status of each installment (Paid, Pending, or Overdue)

Viewing the Schedule

To view a loan's repayment schedule:

Navigate to Finance > Loan > Loan List.
Click on a loan row to open the loan detail view.
Locate the Repayment Schedule section within the detail page.

The schedule is displayed as a table showing every installment from the first to the last.

Schedule Columns

Column	Description
Installment #	The sequential installment number (1, 2, 3, and so on)
Due Date	The date when this installment is due
Amount	The total installment amount (AED)
Principal	The portion of the payment that goes toward reducing the loan balance
Interest	The portion of the payment that covers interest charges (if applicable)
Status	The current status of this installment -- Paid, Pending, or Overdue
Payment Date	The actual date when the payment was made (shown only for paid installments)
Remaining Balance	The outstanding loan balance after this installment is paid

For zero-interest loans, the Interest column will show 0.00 for every installment, and the full payment amount goes toward reducing the principal balance.

Installment Statuses

Each installment in the schedule has one of three statuses:

Status	Description
Paid	The installment has been paid. The payment date and amount are recorded.
Pending	The installment is not yet due. It is scheduled for a future date.
Overdue	The installment due date has passed and payment has not been received.

Overdue installments are highlighted in the schedule to draw attention to missed payments.

How Repayments Are Collected

Loan repayments can be collected in two ways.

Automatic Payroll Deduction

When payroll integration is enabled, the installment amount is automatically deducted from the borrower's salary during each payroll run. This is the most common and reliable method of collection.

The deduction happens automatically -- no manual action is needed by the finance team.
Each deduction is recorded against the corresponding installment in the repayment schedule.
The installment status updates to Paid once the payroll run is processed.

When integrated with payroll, loan repayments are automatically deducted each pay cycle. No manual action is needed for regular installments.

Manual Payment

In some cases, a payment may need to be recorded manually -- for example, if the borrower makes a cash payment, a bank transfer, or a lump-sum payment outside of the regular payroll cycle.

To record a manual repayment:

Open the loan detail page from Finance > Loan > Loan List.
Click the "Record Payment" or "Repay" button.
Enter the payment amount (AED).
Enter the payment date.
Click Save to record the payment.

The system will apply the payment to the next pending installment(s) in the schedule and update the remaining balance accordingly.

Handling Missed Payments

When an installment due date passes without payment:

The installment status changes from Pending to Overdue.
Overdue installments are visually highlighted in the repayment schedule.
If multiple installments are missed, the finance team should review the loan and follow up with the borrower.
Repeated missed payments may lead to the loan being flagged for Default status. See Approval Workflow for details on the defaulting process.

What to Do About Overdue Payments

Contact the borrower -- Reach out to understand the reason for the missed payment.
Record a manual payment -- If the borrower pays outside of payroll (cash, bank transfer), record the payment manually.
Review for default -- If the borrower cannot or will not pay, the loan may need to be moved to Defaulted status by an Admin or Finance Manager.

Early Repayment

A borrower may choose to pay more than the scheduled installment amount, or pay off the entire remaining balance at once.

Partial overpayment -- If a payment exceeds the current installment amount, the excess is applied to subsequent installments.
Full early repayment -- The borrower pays the entire outstanding balance. All remaining installments are marked as Paid, and the loan moves to Completed status.

Early repayment has no penalty by default. The borrower simply pays what remains, and the loan is settled.

When recording a manual early repayment, double-check the outstanding balance on the loan detail page to ensure the correct amount is entered. Overpaying beyond the outstanding balance is not necessary.

Reading the Schedule -- Example

Here is an example of what a repayment schedule looks like for a 5,000 AED interest-free loan with a 6-month tenure:

#	Due Date	Amount	Principal	Status	Payment Date	Remaining Balance
1	2025-02-01	833.33	833.33	Paid	2025-02-01	4,166.67
2	2025-03-01	833.33	833.33	Paid	2025-03-01	3,333.34
3	2025-04-01	833.33	833.33	Overdue	--	2,500.01
4	2025-05-01	833.33	833.33	Pending	--	1,666.68
5	2025-06-01	833.33	833.33	Pending	--	833.35
6	2025-07-01	833.35	833.35	Pending	--	0.00

In this example, installments 1 and 2 have been paid on time, installment 3 is overdue, and installments 4 through 6 are pending future payment.

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