diff --git a/erpnext/hr/doctype/loan/loan.py b/erpnext/hr/doctype/loan/loan.py
index a803863124d..6cf0c2fc7f8 100644
--- a/erpnext/hr/doctype/loan/loan.py
+++ b/erpnext/hr/doctype/loan/loan.py
@@ -13,6 +13,7 @@ class Loan(AccountsController):
 	def validate(self):
 		validate_repayment_method(self.repayment_method, self.loan_amount, self.monthly_repayment_amount, self.repayment_periods)
 		self.set_missing_fields()
+		self.validate_loan_application()
 		self.make_repayment_schedule()
 		self.set_repayment_period()
 		self.calculate_totals()
@@ -33,6 +34,13 @@ class Loan(AccountsController):
 		if self.status == "Repaid/Closed":
 			self.total_amount_paid = self.total_payment
 
+	def validate_loan_application(self):
+		if self.loan_application:
+			loan = frappe.db.get_value("Loan", {"loan_application": self.loan_application}, "name")
+
+			if loan and loan != self.name:
+				frappe.throw(_("Loan {0} already created for Loan Application {1}").format(frappe.bold(loan),
+					frappe.bold(self.loan_application)))
 
 	def make_jv_entry(self):
 		self.check_permission('write')
diff --git a/erpnext/hr/doctype/loan_application/loan_application.js b/erpnext/hr/doctype/loan_application/loan_application.js
index a73b62a894e..e1cc4af6421 100644
--- a/erpnext/hr/doctype/loan_application/loan_application.js
+++ b/erpnext/hr/doctype/loan_application/loan_application.js
@@ -23,20 +23,25 @@ frappe.ui.form.on('Loan Application', {
 	},
 	add_toolbar_buttons: function(frm) {
 		if (frm.doc.status == "Approved") {
-			frm.add_custom_button(__('Create Loan'), function() {
-				frappe.call({
-					method: "erpnext.hr.doctype.loan_application.loan_application.make_loan",
-					args: {
-						"source_name": frm.doc.name
-					},
-					callback: function(r) {
-						if(!r.exc) {
-							var doc = frappe.model.sync(r.message);
-							frappe.set_route("Form", r.message.doctype, r.message.name);
-						}
-					}
-				});
-			}).addClass("btn-primary");
+			// show create loan button if loan not created against loan aplication
+			frappe.db.get_value("Loan", {"loan_application": frm.doc.name}, "name", (r) => {
+				if (!r) {
+					frm.add_custom_button(__('Create Loan'), function() {
+						frappe.call({
+							method: "erpnext.hr.doctype.loan_application.loan_application.make_loan",
+							args: {
+								"source_name": frm.doc.name
+							},
+							callback: function(r) {
+								if(!r.exc) {
+									var doc = frappe.model.sync(r.message);
+									frappe.set_route("Form", r.message.doctype, r.message.name);
+								}
+							}
+						});
+					}).addClass("btn-primary");
+				}
+			});
 		}
 	}
 });