People owe me: interest on money lent

Step 1

People owe me: track interest on money lent

1. Example: lend Ravi INR 50,000
2. Use a separate debt category for each loan
3. Tracked receivable is not cash collected

When you lend money with interest, Pennie can track what someone owes you.

Our example is fifty thousand rupees lent to Ravi, at an agreed twelve percent annually.

These are sample terms.

The amount owed is a receivable, not money already collected.

Step 2

Add a category for the loan you made

1. Open Categories
2. Tap Add category
3. Complete any offered category unlock

Open Categories and tap Add category.

Complete any offered category unlock.

Keep each borrower's loan separate so its balance and terms stay clear.

Step 3

Name the borrower and choose Debt

1. Category name: Ravi Loan
2. Category purpose: Debt
3. Debt can mean money owed to you too

Name this category Ravi Loan and choose Debt.

Debt tracking works in both directions: money you owe and money other people owe you.

This is not an ordinary purchase category.

Step 4

Enable Loan tracking for interest terms

1. Select Loan tracking
2. Enter the agreed collection plan
3. A collection plan does not collect money

Choose Loan tracking to enter principal, interest rate and tenure.

Set a collection plan that matches your agreement.

A plan is only a target; Pennie does not debit the borrower or collect money for you.

Step 5

Choose Owe you, not You owe

1. Find Who owes this balance?
2. Select Owe you
3. Keep this direction when enabling interest

Under Who owes this balance, choose Owe you.

That is the app's choice for people owing you money.

You owe means your own borrowing.

Check this direction before saving; interest tracking must not turn a loan you made into a loan you took.

Step 6

Set your agreed annual interest terms

1. Starting principal: INR 50,000
2. Annual rate: 12%; cadence: Monthly
3. Example interest type: Compound

Enter fifty thousand as starting principal and twelve as the annual interest rate.

Our example uses Monthly and Compound.

Twelve percent annually is not twelve percent every month.

Use the actual agreement, including its compounding frequency; do not assume every loan has these terms.

Step 7

Review the start date and save

1. Sample start: 1 September 2026
2. Sample tenure: 12 months
3. Review Owe you and save once

Our sample starts on the first of September, twenty twenty-six, with twelve months of tenure.

Review the terms and save.

Starting principal is a fallback opening; if lending is already recorded, do not add the same opening twice.

Step 8

Read interest accrued on money owed to you

1. Completed September interest: INR 500
2. Total tracked receivable: INR 50,500
3. Read Ravi Loan and the recent interest banner

Return to Dashboard, Interest Balances, then Debt.

For completed September with no movements, fifty thousand times twelve percent divided by twelve gives five hundred rupees of interest.

Ravi's tracked balance becomes fifty thousand five hundred.

The banner groups recent postings, including possible catch-up periods.

Step 9

Separate principal from interest to collect

1. Principal: INR 50,000
2. Accrued interest: INR 500
3. INR 50,500 is not all interest or income

Separate the amounts: fifty thousand is principal, and five hundred is the modeled accrued interest.

The combined fifty thousand five hundred is not all interest, income or cash received.

When interest is due for collection depends on your agreement.

Step 10

Record real collections and check the agreement

1. Record actual collections with their real dates
2. Tracked repayments cover posted interest first
3. Review partial payments and agreed due dates

Record actual collections separately with their real dates.

Pennie's tracked repayment allocation covers posted interest before principal.

Partial payments change what remains owed.

Review your agreement and the borrower's actual receipts; calculated interest is an estimate, not proof of payment or a legal demand.