--- title: "Loan Installment Skip Request" space: "Lending" url: "https://docs.frappe.io/lending/loan-cycle/loan-installment-skip-request" updated: "2026-11-03" --- A Loan Installment Skip Request lets a borrower skip one or more upcoming EMIs of a term loan. It works for customer loans and for employee loans repaid from salary. The request goes to an approver, and once it is approved, the system creates a Loan Restructure of type Installment Skip that builds the new repayment schedule. The skipped EMI is not demanded, so it never becomes overdue and the Salary Slip does not deduct it. Its interest is not waived: it is added to the next EMI. To access it, go to: > Home > Lending > Loan > Create > Installment Skip Request You can also open the list by searching for Loan Installment Skip Request in the search bar. ![](/files/loan-create-installment-skip-requestfb682b.webp) ## Prerequisites - A term loan with status **Disbursed**. - No unpaid dues on the loan. For a loan repaid from salary, submit the pending Salary Slip first. - An **Installment Skip Approver** on the Loan, if a specific user should approve the requests. If it is empty, any Loan Manager can approve. - **Installment Skip Needs Approval** on the Loan Product. It is ticked by default. If you untick it, a request is approved as soon as it is saved. ![](/files/loan-installment-skip-approver.webp) Installments cannot be skipped for: - a Partially Disbursed loan - a Line of Credit loan - a co-lending loan - a loan repaid in one payment ### How to create a request 1. Open the Loan and click **Create > Installment Skip Request**. The Loan is filled in, and the applicant, company, loan product and approver are fetched from it. 2. The **Installments to Skip** dialog opens. It lists only the upcoming EMIs. EMIs that are already due or paid are not shown. Tick the EMIs to skip and click **Select**. 3. In **After the Skip**, choose what happens to the rest of the loan: - **Repay Fixed Amount per Period**: the EMI stays the same and the tenure gets longer. - **Repay Over Number of Periods**: the end date stays the same and the EMI goes up. 4. Add a **Reason**. 5. Save. The request is saved with status **Open** and shared with the approver. To change the EMIs on an Open request, click **Select Installments**. ![](/files/installments-to-skip-dialog.webp) ![](/files/new-installment-skip-request.webp) ### How to approve or reject 1. The approver opens the request and, if needed, adds **Approver Remarks**. 2. Click **Decision > Approve** or **Decision > Reject**. 3. The request is submitted with the chosen status. An approved request creates the Loan Restructure and shows it in **Loan Restructure**. A rejected request does not change the loan. The **Decision** menu is shown to the approver set on the Loan, to a Loan Manager and to a System Manager. The person who created the request cannot approve their own request, unless they are a System Manager. ![](/files/installment-skip-request-decision.webp) ![](/files/installment-skip-request-approved.webp) ### Fields - **Loan**: the loan to skip installments for. Employees can select only their own loans. - **Approver / Approver Name**: fetched from **Installment Skip Approver** on the Loan. It cannot be changed on the request. - **Status**: Open, Approved, Rejected or Cancelled. - **Installments to Skip**: the EMIs to skip, with their principal, interest and total amount. - **After the Skip**: keep the EMI and extend the tenure, or keep the tenure and increase the EMI. - **Reason**: why the borrower wants to skip. - **Loan Restructure**: the Loan Restructure created on approval. - **Approver Remarks**: notes from the approver. ### How it works When the request is approved, the system: 1. Generates the demand for any EMI that falls before the skip date, so nothing due is missed. 2. Creates a Loan Restructure of type **Installment Skip** and approves it. The restructure date is today, or the last interest accrual or demand date if that is later. 3. Builds a new repayment schedule: - Earlier rows are kept as they are. - Each skipped EMI shows 0 principal, 0 interest and 0 total. Its row is marked as demand generated, so no demand is ever raised for it. - The interest of the skipped month is added to the next EMI. For example, if the November EMI is skipped, the December EMI is higher by that month's interest. - With **Repay Fixed Amount per Period**, one EMI is added at the end for every skipped EMI. With **Repay Over Number of Periods**, the EMI is recalculated over the remaining installments. 4. Updates the EMI, tenure, total payable and total interest on the Loan. ![](/files/loan-restructure-installment-skip.webp) ![](/files/loan-restructure-skipped-installments.webp) ![](/files/repayment-schedule-after-skip.webp) ### Employee loans repaid from salary The Salary Slip deducts only EMIs that have a demand. A skipped EMI has no demand, so it is left out of that month's Salary Slip. The next month's slip deducts the next EMI, including the interest of the skipped month. ### Skipping again later A loan can have more than one skip. When a new skip is approved, the earlier skipped EMIs stay skipped. Loan Repayment Repost also keeps skipped EMIs skipped. ### Checks When the request is saved, and again when it is approved, the system checks that: - each EMI is still upcoming, with no demand generated and not paid - the same EMI is not selected twice - the EMI is not already in another Open or Approved request for the loan - the loan has no unpaid dues On approval, with **Repay Over Number of Periods**, at least one EMI must remain after the skipped ones. If a demand is generated for a selected EMI after the request was made, the approval fails. Create a new request in that case. ### Cancel Cancelling an approved request cancels its Loan Restructure. The old repayment schedule becomes active again, and the Loan gets back its old EMI and tenure. If the loan has more than one skip, cancel the latest one first. An older skip cannot be cancelled while a later restructure is active. ### Roles - **Employee**: create and edit their own requests, only for their own loans. - **Approver** set on the Loan: approve or reject the requests of that loan. The approver gets read access to the loan through a share, so no extra role is needed. - **Loan Manager**: create requests for any loan, and approve, reject or cancel any request except their own. - **System Manager**: all of the above, including deciding their own request.