diff --git a/erpnext/loan_management/doctype/loan/loan.py b/erpnext/loan_management/doctype/loan/loan.py
index 20b44a15e34..230475f2d14 100644
--- a/erpnext/loan_management/doctype/loan/loan.py
+++ b/erpnext/loan_management/doctype/loan/loan.py
@@ -71,7 +71,6 @@ class Loan(AccountsController):
 			frappe.throw(_("Repay From Salary can be selected only for term loans"))
 
 	def make_repayment_schedule(self):
-
 		if not self.repayment_start_date:
 			frappe.throw(_("Repayment Start Date is mandatory for term loans"))
 
@@ -79,10 +78,9 @@ class Loan(AccountsController):
 		payment_date = self.repayment_start_date
 		balance_amount = self.loan_amount
 		while(balance_amount > 0):
-			interest_amount = rounded(balance_amount * flt(self.rate_of_interest) / (12*100))
+			interest_amount = flt(balance_amount * flt(self.rate_of_interest) / (12*100))
 			principal_amount = self.monthly_repayment_amount - interest_amount
-			balance_amount = rounded(balance_amount + interest_amount - self.monthly_repayment_amount)
-
+			balance_amount = flt(balance_amount + interest_amount - self.monthly_repayment_amount)
 			if balance_amount < 0:
 				principal_amount += balance_amount
 				balance_amount = 0.0
@@ -196,7 +194,8 @@ def request_loan_closure(loan, posting_date=None):
 		posting_date = getdate()
 
 	amounts = calculate_amounts(loan, posting_date)
-	pending_amount = amounts['payable_amount'] + amounts['unaccrued_interest']
+	pending_amount = amounts['pending_principal_amount'] + amounts['unaccrued_interest'] + \
+		amounts['interest_amount'] + amounts['penalty_amount']
 
 	loan_type = frappe.get_value('Loan', loan, 'loan_type')
 	write_off_limit = frappe.get_value('Loan Type', loan_type, 'write_off_amount')
diff --git a/erpnext/loan_management/doctype/loan/test_loan.py b/erpnext/loan_management/doctype/loan/test_loan.py
index 6f8da3166fc..fae6f860b6d 100644
--- a/erpnext/loan_management/doctype/loan/test_loan.py
+++ b/erpnext/loan_management/doctype/loan/test_loan.py
@@ -56,25 +56,25 @@ class TestLoan(unittest.TestCase):
 	def test_loan(self):
 		loan = frappe.get_doc("Loan", {"applicant":self.applicant1})
 		self.assertEquals(loan.monthly_repayment_amount, 15052)
-		self.assertEquals(loan.total_interest_payable, 21034)
-		self.assertEquals(loan.total_payment, 301034)
+		self.assertEquals(flt(loan.total_interest_payable, 0), 21034)
+		self.assertEquals(flt(loan.total_payment, 0), 301034)
 
 		schedule = loan.repayment_schedule
 
 		self.assertEqual(len(schedule), 20)
 
-		for idx, principal_amount, interest_amount, balance_loan_amount in [[3, 13369, 1683, 227079], [19, 14941, 105, 0], [17, 14740, 312, 29785]]:
-			self.assertEqual(schedule[idx].principal_amount, principal_amount)
-			self.assertEqual(schedule[idx].interest_amount, interest_amount)
-			self.assertEqual(schedule[idx].balance_loan_amount, balance_loan_amount)
+		for idx, principal_amount, interest_amount, balance_loan_amount in [[3, 13369, 1683, 227080], [19, 14941, 105, 0], [17, 14740, 312, 29785]]:
+			self.assertEqual(flt(schedule[idx].principal_amount, 0), principal_amount)
+			self.assertEqual(flt(schedule[idx].interest_amount, 0), interest_amount)
+			self.assertEqual(flt(schedule[idx].balance_loan_amount, 0), balance_loan_amount)
 
 		loan.repayment_method = "Repay Fixed Amount per Period"
 		loan.monthly_repayment_amount = 14000
 		loan.save()
 
 		self.assertEquals(len(loan.repayment_schedule), 22)
-		self.assertEquals(loan.total_interest_payable, 22712)
-		self.assertEquals(loan.total_payment, 302712)
+		self.assertEquals(flt(loan.total_interest_payable, 0), 22712)
+		self.assertEquals(flt(loan.total_payment, 0), 302712)
 
 	def test_loan_with_security(self):
 
diff --git a/erpnext/loan_management/doctype/loan_repayment/loan_repayment.py b/erpnext/loan_management/doctype/loan_repayment/loan_repayment.py
index 728eadf22a9..3d99b1f3040 100644
--- a/erpnext/loan_management/doctype/loan_repayment/loan_repayment.py
+++ b/erpnext/loan_management/doctype/loan_repayment/loan_repayment.py
@@ -435,7 +435,6 @@ def get_amounts(amounts, against_loan, posting_date):
 
 @frappe.whitelist()
 def calculate_amounts(against_loan, posting_date, payment_type=''):
-
 	amounts = {
 		'penalty_amount': 0.0,
 		'interest_amount': 0.0,