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Every loan payment flows through the member’s savings balance. When a member wants to repay their loan, their savings account must hold at least as much as the payment amount — Agatabo deducts the payment from savings and allocates it across principal, interest, and any applied penalties in one automatic transaction. Recording payments promptly keeps arrears accurate and ensures your financial reports reflect reality.
Before recording a payment:
  • You hold the loans:write permission.
  • The loan is active — payments cannot be posted to loans that are fully repaid or written off.
  • The member’s savings balance is sufficient to cover the payment amount. If the member is bringing cash to pay their loan, record the cash as a savings deposit first, then record the loan payment.
  • You know the exact payment amount and the date the payment was made.

Recording a Payment

1

Navigate to the loan

Click Loans in the left sidebar. Use the search bar to find the borrower by name, or browse the active loans list. Click the loan row to open the loan detail page.
2

Open the payment dialog

Click Record Payment near the top of the loan detail page.
3

Enter payment details

Complete the fields in the payment form. See the field reference below.
4

Review the payment allocation

Before submitting, Agatabo displays a breakdown of how the payment will be split between principal, interest, and penalties. Verify this matches your expectation.
5

Submit the payment

Click Save or Record Payment. The transaction posts immediately.

Payment Form Fields

FieldDescriptionRequiredExample
AmountThe payment amount to deduct from the member’s savings balanceYes50,000 RWF
Payment DateThe date the payment was received (defaults to today)Yes2026-06-08
DocumentA receipt, mobile money screenshot, or other proof of paymentNoreceipt.pdf

Reviewing the Allocation Preview

Agatabo shows you exactly how the payment will be distributed before you confirm. Example for a 50,000 RWF payment:
ComponentAllocatedNew Balance
Interest12,000 RWF0 RWF (interest cleared)
Principal38,000 RWF400,000 RWF (reduced from 438,000)
Penalty0 RWF0 RWF
Total50,000 RWF
The allocation follows the Payment Allocation Order set when the loan was created. Most loans use INTEREST_FIRST — all outstanding interest is satisfied before any amount reduces the principal balance.

What Happens Automatically

When you save the payment, Agatabo executes nine steps in a single transaction:
  1. Validates the savings balance — confirms the member has at least the payment amount available.
  2. Deducts from the member’s savings — the payment amount is removed from their savings ledger account.
  3. Allocates across components — splits the payment between principal, interest, and penalties per the loan’s allocation order.
  4. Updates the loan balance — the outstanding principal and interest receivable are reduced.
  5. Creates a journal entry — a complete double-entry record is posted automatically (see example below).
  6. Marks installments as paid — installments that are fully covered are updated to Paid status; partially covered ones show Partially Paid.
  7. Recalculates arrears — if the loan had overdue amounts, arrears are updated to reflect the payment.
  8. Records the audit trail — your user ID, timestamp, and all payment details are logged.
  9. Sends a notification (if enabled) — the borrower receives a payment confirmation.

Journal Entry Example

For a 50,000 RWF payment (38,000 principal + 12,000 interest):
DateAccountDebitCredit
2026-06-08Savings — John Mugisha50,000
2026-06-08Loan Receivable38,000
2026-06-08Interest Receivable12,000
Member savings decrease (liability decreases) and the loan receivable asset decreases by the same net amount.

Common Scenarios

Full Installment Payment

The member pays exactly the amount shown on their installment schedule.
1

Enter the exact installment amount

Find the scheduled amount in the loan’s installment table and enter it in the Amount field.
2

Verify the allocation

The full principal and interest components of that installment should be covered.
3

Submit

The installment is marked Paid with no arrears remaining for that period.

Partial Payment

The member pays less than the scheduled installment.
1

Enter the actual amount received

For example, 20,000 RWF when 44,500 RWF is due.
2

Review the allocation

With INTEREST_FIRST: the 20,000 goes to interest first; if interest exceeds 20,000, the principal is untouched. Check the preview carefully.
3

Note the remaining arrears

The unpaid portion is added to arrears and may trigger a late payment penalty on the next penalty review date.
Consistent partial payments accumulate arrears. If a member regularly pays less than their installment, arrears grow each month. Apply a penalty and follow up proactively rather than waiting for the situation to escalate.

Overpayment / Early Payment

The member pays more than the current installment — either to get ahead or to reduce the balance faster.
1

Enter the full amount the member is paying

For example, 100,000 RWF when 44,500 RWF is due.
2

Review the allocation

The current installment is satisfied first; the excess amount is applied to future installments or the remaining principal balance.
3

Check the updated schedule

Future installments may be marked as prepaid, and the outstanding balance will have decreased more than a single installment would account for.
Overpayments are always welcome — they reduce the outstanding balance faster and lower the total interest owed on reducing-balance loans. Communicate this benefit to members who want to pay off their loans early.

Member Needs to Deposit Before Paying

If the member does not have sufficient savings to cover the payment, you must record a deposit first.
1

Record the cash deposit

Navigate to Savings → Deposit History → Record Deposit and post the cash as a savings deposit. The member’s savings balance increases immediately.
2

Return to the loan and record the payment

Now that the savings balance is sufficient, record the loan payment as normal.
This two-step process correctly captures both the cash inflow (deposit) and the loan repayment (payment from savings). Do not skip the deposit step — recording only the loan payment would attempt to deduct from an insufficient balance and will be rejected.

Common Issues

The member’s savings balance is less than the payment amount. Check their current balance in Organization Users → [Member] → Savings. If the member is bringing cash, record a savings deposit for the cash amount first, then return to record the loan payment.
The loan may already be fully repaid, written off as a default, or the loan ID may be incorrect. Verify the loan status in the Loans list. Payments can only be posted against loans with Active status.
Your account does not hold the loans:write permission. Contact your administrator to request the correct permission. If you have loans:write with SELF scope, you can only record payments against your own loans.
The payment date either falls in a closed accounting period or is set in the future. Ensure the date is within the current open period and is not later than today. Check Advanced → Period Closing to see which periods are open.