Difference between interest due but payable and interest due but not payable

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Sunaina Kothari

Sunaina Kothari (Querist)
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18 May 2016 what are the differences between interest due and payable and interest due but not payable

CA Amrita Chattopadhyay

CA Amrita Chattopadhyay

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19 May 2016 The above concept can be explained in the case of loan taken where you are supposed to repay the loan with principal and interest. There are certain due dates when the repayment has to be made. Lets say that the loan is required to be paid after 2 years of acceptance of loan. In such situation, the interest will accrue / due but not payable in the first year (as you will start repaying the loan after 2 years). But in the third year, the interest will be due and also payable on the due date.