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Daily & weekly collection lending: how to track it

If you lend a sum and collect it back in small daily or weekly installments — what many call daily finance or pigmy collection — the challenge isn't the math, it's keeping track of dozens of tiny payments and knowing instantly who's behind. Here's how it works and how to stay on top of it.

How collection lending works

Unlike a monthly-interest loan, a daily/weekly loan is usually a flat, fixed total agreed up front and split into equal installments. The borrower repays a small fixed amount each collection day until the total is cleared.

A worked example

Lend ₹10,000, to be collected as ₹220 a day for 50 days:

ItemValue
Principal lent₹10,000
Daily installment₹220
Number of days50
Total repayable₹11,000
Interest (fixed)₹1,000

The total is fixed up front — it doesn't reduce if the loan is repaid early. (Weekly collection works the same way, just on a weekly installment.)

Why it's hard on paper

One daily-collection loan means 50 entries; ten borrowers mean hundreds. It's easy to lose track of who paid today, who skipped, and who's several installments behind — and recalculating each person's remaining balance by hand is tedious and error-prone.

How LendBook handles it

Run your collection book in your pocket

See today's collections, who's overdue, and every running balance — at a glance.

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