> For the complete documentation index, see [llms.txt](https://help.immodio.app/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://help.immodio.app/en/anleitung/einnahmen-und-ausgaben/buchhaltung-erweiterung/10121600-tilgung-rueckzahlung-eines-bankdarlehens-darlehens-kredits.md). # Repayment of a bank loan or credit Help on the Immodio entry item Repayment or redemption of a bank loan, loan or credit.
You use this category for repayments with which you repay a loan or credit taken out. What is meant is exclusively the **repayment of the capital originally borrowed**. Typical cases are: * the monthly capital repayment elements of a property loan, * special repayments, * the full repayment of a loan, * the redemption of an existing credit as part of a refinancing, * the repayment of a private loan taken out for your letting activity. The distinction between **capital repayment and interest** is particularly important. {% hint style="info" %} The capital repayment itself is **not income-related expenditure**. It merely reduces your existing loan debt. Debt interest, by contrast, can constitute income-related expenditure under Section 9 EStG as far as the loan is economically connected with your letting activity. {% endhint %} #### **This category is only for the capital repayment element** An ordinary loan instalment frequently consists of: * **capital repayment** * and **interest** These two components have to be posted separately. **Example: a monthly loan instalment** Your monthly credit instalment is: **€1,500** According to the repayment schedule or the bank's statement, the following relates to: * **€1,000 to capital repayment** * **€500 to interest** You then post: * **€1,000 to the category → "**[**Repayment or redemption of a bank loan, loan or credit**](/en/anleitung/einnahmen-und-ausgaben/buchhaltung-erweiterung/10121600-tilgung-rueckzahlung-eines-bankdarlehens-darlehens-kredits.md)**"** * **€500 to the category → "**[**Debt interest, interest on a bank loan, loan or credit**](/en/anleitung/einnahmen-und-ausgaben/buchhaltung-erweiterung/10107500-schuldzinsen-zinsen-fuer-bankdarlehen-darlehen-kredit.md)**"** #### **Special repayments also belong in this category** Where you make a **special repayment** in addition to your ordinary monthly instalments, this is likewise a repayment of the loan capital. **Example** * Ordinary monthly capital repayments in the year: **€12,000** * Additional special repayment: **€20,000** Your capital repayments then total: **€32,000** This **€20,000 special repayment** is posted to **"**[**Repayment or redemption of a bank loan, loan or credit**](/en/anleitung/einnahmen-und-ausgaben/buchhaltung-erweiterung/10121600-tilgung-rueckzahlung-eines-bankdarlehens-darlehens-kredits.md)**"** just like the ordinary capital repayment elements. #### **Full repayment of a loan** Where you repay a loan in full, the entire outstanding capital amount is treated as a capital repayment. **Example** Outstanding balance: **€75,000** You redeem the loan in full and the bank collects **€75,000**. You post this **€75,000** as a capital repayment to the **"**[**Repayment or redemption of a bank loan, loan or credit**](/en/anleitung/einnahmen-und-ausgaben/buchhaltung-erweiterung/10121600-tilgung-rueckzahlung-eines-bankdarlehens-darlehens-kredits.md)**"** category\*\*.\*\* Where the final statement additionally contains: * running interest, * fees, * an early repayment penalty, * or other costs, those amounts may not be treated as a capital repayment together with the outstanding balance. #### **Refinancing: record the old and the new loan separately** With a refinancing, a new loan is frequently taken out in order to redeem an existing credit. Two separate transactions arise in the process. **Example** * Outstanding balance of the old loan: **€200,000** * A new bank provides you with a follow-on loan of: **€200,000**. The old loan is redeemed in full with this money. The following then applies: * The **€200,000** of the new loan is posted to the category→ "[Taking out a bank loan, loan or credit](/en/anleitung/einnahmen-und-ausgaben/buchhaltung-erweiterung/10012300-aufnahme-eines-bankdarlehens-darlehens-kredits.md)" * The **€200,000** repayment of the old loan is posted to the category → "[Repayment or redemption of a bank loan, loan or credit](/en/anleitung/einnahmen-und-ausgaben/buchhaltung-erweiterung/10121600-tilgung-rueckzahlung-eines-bankdarlehens-darlehens-kredits.md)". The interest subsequently paid on the new loan is in turn posted separately to the category "[Debt interest, interest on a bank loan, loan or credit](/en/anleitung/einnahmen-und-ausgaben/buchhaltung-erweiterung/10107500-schuldzinsen-zinsen-fuer-bankdarlehen-darlehen-kredit.md)". {% hint style="info" %} The same principle applies to taking out a new loan without an already existing loan beforehand. {% endhint %} #### **Always split the loan instalment using the repayment schedule** With an annuity loan the monthly instalment frequently stays the same over a longer period. The ratio between: * **interest** * and **repayment of capital** changes constantly, however. **Example** Monthly instalment: **€1,500** In January: * interest: **€700** * capital repayment: **€800** Some years later: * interest: **€450** * capital repayment: **€1,050** Although the total payment is still **€1,500**, a split determined once may not be used permanently. What is relevant is the **bank's actual split** as shown in particular by: * the repayment schedule, * the loan account, * the annual account statement, * the interest certificate . #### **Assignment in Immodio** With this category the assignment is to the **owner**. Select the owner to whom the loan concerned and its repayment are actually economically attributable. #### **Do not recover from the tenant** Repaying a property credit is a **financing decision of the owner** and not a running operating cost item of the let property. The **"Recoverable in the operating cost statement"** switch therefore has to stay **disabled**. #### **Which documents should you keep?** Keep in particular: * the **loan agreement**, * the repayment or payment schedule, * the loan account statements, * the bank's annual **interest and capital repayment summaries**, * evidence of special repayments, * redemption or final statements, * with a refinancing, records on the old and the new loan, * with a full redemption, confirmation of the outstanding balance repaid, * and with several financings, a comprehensible assignment of each loan to the let property concerned. That keeps it comprehensible in particular **which part of your credit instalment merely repays loan capital and which part can actually be relevant for tax as interest expenditure**.