---
title: "Loan Demand"
space: "Lending"
url: "https://docs.frappe.io/lending/loan-demand"
updated: "2026-01-06"
---

**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.

![Loan Demand](/files/Loan Demand.png)  


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

 ![Loan Demand Entries](/files/Loan Demand Entries.png)