Loan Demand

A loan demand, often referred to as a demand for repayment or demand notice, is a formal request made by a lender to a borrower, requiring the borrower to repay the outstanding loan balance. This is the stage when the accumulated interest and the payable principal component of the EMI becomes due.

These loan demands are automatically generated by the system as soon as the payment date for a specific loan is reached. To create these demands manually user can run the Loan Demand Process.

Once the loan demand is generated for the interest component, the accrued amount is moved to the customer-receivable account