Add a loan and track its EMIs
You will have the loan on the books with its outstanding balance, a monthly EMI split into principal and interest, the vehicle it bought linked to it, and each EMI due appearing in Schedules until it is paid.
Books › Loans holds every vehicle and business loan: who lent it, how much is outstanding, the Monthly EMI, the Next EMI due, Progress as EMIs paid out of total, and Status. From each row you can edit the loan, record payments and open its history.
Once a loan is saved, its EMIs appear month by month under Books › Schedules, so you do not have to remember due dates or work out the interest split.
Before You Start
- The lender exists as a supplier under People › Suppliers, or you are ready to add it.
- The bank account the loan money landed in exists under Books › Bank.
- If the loan bought a vehicle, that vehicle exists under Vehicles.
- You have the sanction letter or schedule: loan amount, EMI, start date, tenure in months and the annual interest rate.
Steps
- Open Books › Loans and click Add.
- Choose the Loan kind. Money just landed is a new loan whose disbursement should post into your bank now. Already on the books is an existing loan you are bringing in at go-live; only the outstanding position is recorded and no money moves.
- Choose the Method: Reducing balance or Flat rate. Reducing balance charges interest on what is still outstanding, so the interest part of each EMI falls over time. Flat rate charges interest on the original amount throughout. Match what your lender’s schedule says.
- Pick the Lender and the Bank the money landed in.
- In Related To, choose Vehicle and select the vehicle the loan financed. This lets the loan show against the vehicle and is what connects the EMI interest to that vehicle’s cost.
- Enter Loan amount, Monthly EMI, Start date, Tenure (months) and Annual interest rate %. Tick Secured loan if the vehicle is hypothecated to the lender. Leave Active ticked.
- Save, then open Books › Schedules to see the EMI rows. Each row shows Period, Due Date, Amount, Principal, Interest and Status.
- When an EMI is paid, use payments on the loan row, or Pay on Loans or Mark Paid in Schedules. Pick the bank account the EMI left. The outstanding balance, Progress and Next EMI due update.
Fields On This Screen
Field | What to enter | Required |
|---|---|---|
Loan kind | Money just landed (new) or Already on the books (existing) | Yes |
Method | Reducing balance or Flat rate | Yes |
Lender | The bank or finance company, as a supplier | Yes |
Bank the money landed in | Your bank account that received the loan | Yes |
Related To / Select Entity | Vehicle the loan financed | Recommended |
Loan amount | Principal sanctioned | Yes |
Monthly EMI | The instalment from the lender’s schedule | Yes |
Start date | Date of the first EMI, or of disbursement | Yes |
Tenure (months) | Number of EMIs | Yes |
Annual interest rate % | The rate on the sanction letter | Yes |
Secured loan | Tick if the asset is hypothecated | No |
Active | Untick when the loan is closed | Yes |
What This Changes
- A Money just landed loan increases the chosen bank account and creates a loan liability on the Balance Sheet. Already on the books records the liability without moving bank.
- The Loans list shows Outstanding, Monthly EMI, Next EMI due, Progress (n/N) and Status.
- One Loan EMI row per month appears in Schedules, with the Principal and Interest split from the method you chose.
- Each EMI paid reduces the bank account and the loan liability by the principal and posts the interest as a finance cost on the Profit & Loss; the history on the loan row lists every payment.
- The vehicle linked in Related To carries the loan, so interest can be read alongside its running costs.
Tips
- If the EMI on the lender’s schedule differs slightly from the calculated one, enter the lender’s figure; the last EMI absorbs the rounding.
- For a loan taken before go-live, choose Already on the books and enter the outstanding amount and remaining tenure rather than the original figures.
- Prepaying or closing a loan early? Record the final payment, then untick Active so it drops off Schedules.
Frequently asked questions
Need Help?
Chat with the NShine ERP support team on WhatsApp at +91 79950 87755, or ask from inside the app. Last checked 9 November 2026 against app.nshineerp.com.