Monthly-interest lines
Monthly interest loan software that keeps principal and interest apart
In a monthly interest loan, the borrower pays interest month after month while the principal stays outstanding. Vasool Raja records both separately, so you always know how much interest has come in and how much principal is still out.
The problem with mixing interest and principal
Monthly interest lending, often called vatti in Tamil Nadu, looks simple on paper: a fixed amount every month. The trouble starts when interest and principal end up in the same column. After a year, it is hard to say whether a borrower has only paid interest or has reduced the loan, and disputes follow.
Keeping interest and principal apart is not just good bookkeeping. It is what lets you answer a borrower’s question calmly, with the statement in front of you.
Interest-only lines vs instalment lines
Vasool Raja treats monthly-interest lines as their own line type, separate from monthly instalment lines where each payment includes principal. That way the app does not assume a monthly interest borrower is paying down the loan, and your reports do not treat interest receipts as principal recovery.
- Monthly-interest line: interest is collected each period while the principal stays outstanding
- Monthly line: instalments according to the loan schedule
- Both can run in the same company with separate reporting
Interest upfront or through the schedule
Some lenders deduct interest at disbursement; others collect it over the life of the loan. Both are supported, so the loan record matches the way the money actually moved. That matters later, when you look at profitability or close the loan.
Statements, closure and renewal
Each loan has a statement and payment history that you can export as a PDF. When the borrower repays, the loan goes through a closure flow, which can require approval, and discounts are recorded rather than quietly adjusted. Eligible loans can be renewed with the history intact.
If you already run a monthly interest book, you can import existing loans and start recording from today instead of re-entering years of receipts.
Responsible record-keeping
Clear records are the base of fair lending. Vasool Raja is record-management software; it does not provide loans or financial services, and it does not decide rates for you. Make sure your interest rates and terms follow the law that applies to your business.
Common questions
What is the difference between a monthly line and a monthly-interest line?
A monthly line collects instalments according to the schedule. A monthly-interest line collects interest each period while the principal remains outstanding, and the app records them separately.
Can I take interest at the time of giving the loan?
Yes. Monthly-interest loans can have interest collected upfront or through the schedule.
Can I show a borrower what they have paid so far?
Yes. Each loan has a statement and payment history, which can be downloaded as a PDF with English, Hindi or Tamil labels.
Can I import monthly interest loans I gave years ago?
Yes. You can import existing loans and continue recording interest from today, so you do not need to re-enter every past receipt.
See it with your own lines
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No card required. Vasool Raja is record-management software and does not provide loans or financial services.