The math
EMI = Principal × Rate / 100 (per period). Outstanding always equals Principal until closure or principal repayment.
Example
₹10,000 at 2% interest, monthly reminders. You collect ₹200 every month. After 12 months, outstanding is still ₹10,000 unless the borrower repays principal.
Before you start
- Borrower must exist.
- Amount > 0, interest rate ≥ 0.
- Tenure is optional — leave it off for fully open-ended lending.
Step-by-step
Open Add Loan
Borrower Detail → Add Loan.Pick Interest Only
At the top of the form, pick Interest Only (not Standard EMIs).Enter amount and rate
Enter the principal (must be greater than 0) and the annual interest rate (must be ≥ 0).Skip tenure (or set a cap)
Tenure is not required. If you want a duration cap, toggle "Set fixed loan duration" and enter the EMI count.Set reminders and create
Choose reminder unit (days or months) and frequency. Tap Create Loan.
Frequently asked questions
Fixed EMI = Principal × Rate / 100, computed once at creation. Example: ₹10,000 at 2% → ₹200/month every month, until you close the loan.
On the loan close. Either the borrower pays the full principal in one go and you tap Close Loan, or — if you enabled a duration cap — the final EMI includes the principal as a balloon payment.
No. For Interest-Only loans, outstanding equals the principal at all times. Interest payments do not reduce it. Closing the loan or recording a principal payment is what drops the outstanding to zero.
If you set a tenure cap and reach the final EMI, VyajPay flags it as the final EMI. The dialog prompts to close the loan or extend it.
No. The interest type is locked once the loan is created. Close the current one and start a new Flat or Reducing loan.