Give each agreement its own record
A borrower might have a working-capital advance with monthly interest and a separate equipment loan with its own repayment terms. Keep both under the same borrower. Give each its own reference, lender, disbursement history and terms.
If the borrower draws further funds under an existing agreement, check the signed terms before deciding whether it is a further advance or a new loan. The recorded terms and evidence should explain that choice later.
Allocate one bank movement once
Suppose the borrower pays ₹25,000 and identifies ₹5,000 for interest on Loan A and ₹20,000 for principal on Loan B. Record a single receipt and review its allocations. Keep the bank reference alongside the receipt so the register can be matched to the statement.
After posting, verify each loan’s balance and the total cash received. If the intended split is unclear, get clarification and keep the unallocated amount visible until it can be applied.
One receipt, two loan allocations
| Loan | Allocation | Amount |
|---|---|---|
| Loan A | Interest | ₹5,000 |
| Loan B | Principal | ₹20,000 |
| Bank receipt | Total received | ₹25,000 |