# How to Make Repayments on a Client Loan Account

This section describes the steps to record a client repayment on a loan account that is not a group loan account or a JLG loan account. The following methods are available:

* repayment via cash or similar payment type
* one time transfer from saving account
* standing instruction transfer from saving account

For repayments of group loan accounts see How to Make Repayments on a Group Loan Account.\
For repayments of JLG loan accounts see Using collection sheet or other payment types for making payments.

### To make a repayment using cash or similar payment type

Locate the loan account by navigating to it through the client who holds the loan account.

1. Select **Make Repayment** from the action bar.
2. Accept the default **Transaction date** or select a different date from the calendar pop-up.
3. Accept the default **Transaction amount** or type a different repayment amount.
4. Select **Payment type** from the list.
5. Click **+** to add payment details (optional).

   a. Account#

   b. Check#

   c. Routing code

   d. Receipt#

   e. Bank#
6. Type relevant notes.
7. Click **Submit.**

The loan account repayment will be recorded and the repayment schedule and loan summary will be updated with the payment information.

### To make loan repayments from a saving account (one time transfer)

Locate the saving account from which the loan repayment will be made (the originating account).

{% hint style="danger" %}
The saving account from which the transfer originates needs not belong to the same client that the loan account belongs to. The client who owns the originating account must request/authorize the transfer.

The originating and destination accounts must be in the same currency.
{% endhint %}

1. Click the saving account name in the list to view the saving account information.
2. Click **More** and **Transfer Funds** from the action bar.
3. Select the group and account (the destination loan account to be repaid) to transfer funds to:

   **a. Office**: Select the office where the destination loan account is located.

   **b. Client**: Select the client who holds the destination loan account.&#x20;

   **c. Account type**: Select the loan product type upon which the destination loan account is based.

   **d. Account**: Select the destination loan account.

   **e. Amount**: Type the transfer amount.
4. Select the **Transaction date** from the calendar pop-up.
5. Type any notes in **Description**
6. Click **Submit**.&#x20;

### To make loan repayments from a saving account (standing instruction transfer)

Standing instructions can be set up to transfer funds from a saving account to a loan account. The transfer will take place based on the schedule defined in the standing instruction. For a loan repayment, the standing instruction schedule can be set to match the loan repayment schedule.

**Enabling "Create standing Instruction at Disbursement"**&#x20;

In New Loan application page

![](https://mifosforge.jira.com/wiki/download/attachments/68354117/sd.png?version=1\&modificationDate=1420456758517\&cacheVersion=1\&api=v2)

On automatically running the Scheduler jobs for "Execute Standing Instruction" on the repayment date, Repayment amount automatically gets collected from the linked savings account.

![](https://mifosforge.jira.com/wiki/download/thumbnails/68354117/ex.png?version=1\&modificationDate=1420460391404\&cacheVersion=1\&api=v2\&width=900)

Note: If there isn't sufficient funds in the linked savings account, Scheduler jobs for "Execute Standing Instruction" fails and the repayment doesn't happen.

{% hint style="danger" %}
The saving account from which the transfer originates needs not belong to the same client that the loan account belongs to. The client who owns the originating account must request/authorize the standing instruction.

The originating and destination accounts must be in the same currency.
{% endhint %}

{% hint style="danger" %}
*Need to describe what happens when a standing instruction cannot be completed because of a shortage of funds in the originating account. There seems to be an outstanding issue in JIRA regarding re-attempts to satisfy the standing instruction.*
{% endhint %}

Locate the client or group whose savings account will be the origination of the funds for the transfer.

1. Click **More** and **Create standing instructions** to create new standing instructions.
2. Complete the fields on the **Create Standing Instruction** form. See Standing Instruction form fields.
3. Click **Submit**.

The standing instruction will be created and will be in effect from the **Validity from** date until the **To** date inclusive; or until the standing instruction is Disabled.

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