Unsecured Loan Interest Calculation in Tally Prime
Tally Prime allows you to calculate interest on unsecured loans using its Interest Calculation feature. Below is a step-by-step guide to setting up and computing interest.
Do the given entry below step by step to know in detail.
On 01/04/2025, Company take loan of Rs. 50,000 from Sachin and Co. on interest rate of 10% annually for the next 3 months till 01/06/2025. On 1-9-2025, Company make payment of Rs. 50,000 loan taken also paid interest amount payable by HDFC Bank.
01) Ledger creation: –
Kranti and Co. (unsecured loan)
Interest parameter
Rate: – 10% / Per 365-Day Year / On Credit balance only
Applicable form: -1-4-2025


02) Receipt voucher (F6)
Gateway of Tally—–> Vouchers ——>Receipt voucher (Ctrl + H to change mode i.e. Double Entry)

Gateway of Tally—–> Display more report ——> Statement of accountant —–> interest calculation —> Ledger —–> Kranti and co.
Press F2 to change period: (From 1-4-2025 to 01-06-2025 (till date u want to take loan)
The period of loan start from the date of receipt received, so the date 01-06-2025 is the end date
of loan.i.e. (From 1-4-2025 to 01-06-2025)
03) Payment Voucher
On 1/06/2025, Company make payment of Loan amount of Rs. 50,000/- taken by SBI Bank.
Gateway of tally —–> Vouchers ——> Payment Voucher (F5)

04) Credit Note Voucher
Gateway of Tally—–> Vouchers ——> Credit Note (Interest Payable)
Press F2 to change the date: – 01-06-2025
Voucher type: Interest payable
Voucher Class: – Simple Interest
Cr. Kranti and co (Amount of interest will be automatically display).
Dr. Interest payable

Assignments on unsecured loan: –
- On 01/05/2025, Company take loan of Rs. 1,75,000 from Sachin and Co. on interest rate of 12% annually for the next 4 months till 01/09/2025. On 1-9-2025, Company make payment of Rs. 1,75,000 loan taken also paid interest amount payable by State bank of India.
- On 01/06/2025, Company take loan of Rs. 2,25,000 from Adani and Co. on interest rate of 9% annually for the 6 months till 01/12/2025. On 1-12-2025, Company make payment of Rs. 2,25,000 loan taken also paid interest amount payable HDFC Bank.