diff --git a/erpnext/loan_management/report/loan_interest_report/__init__.py b/erpnext/loan_management/report/loan_interest_report/__init__.py
new file mode 100644
index 0000000000..e69de29bb2
diff --git a/erpnext/loan_management/report/loan_interest_report/loan_interest_report.js b/erpnext/loan_management/report/loan_interest_report/loan_interest_report.js
new file mode 100644
index 0000000000..852e3ca366
--- /dev/null
+++ b/erpnext/loan_management/report/loan_interest_report/loan_interest_report.js
@@ -0,0 +1,9 @@
+// Copyright (c) 2016, Frappe Technologies Pvt. Ltd. and contributors
+// For license information, please see license.txt
+/* eslint-disable */
+
+frappe.query_reports["Loan Interest Report"] = {
+	"filters": [
+
+	]
+};
diff --git a/erpnext/loan_management/report/loan_interest_report/loan_interest_report.json b/erpnext/loan_management/report/loan_interest_report/loan_interest_report.json
new file mode 100644
index 0000000000..321d6064e3
--- /dev/null
+++ b/erpnext/loan_management/report/loan_interest_report/loan_interest_report.json
@@ -0,0 +1,29 @@
+{
+ "add_total_row": 1,
+ "columns": [],
+ "creation": "2021-01-10 02:03:26.742693",
+ "disable_prepared_report": 0,
+ "disabled": 0,
+ "docstatus": 0,
+ "doctype": "Report",
+ "filters": [],
+ "idx": 0,
+ "is_standard": "Yes",
+ "modified": "2021-01-10 02:03:26.742693",
+ "modified_by": "Administrator",
+ "module": "Loan Management",
+ "name": "Loan Interest Report",
+ "owner": "Administrator",
+ "prepared_report": 0,
+ "ref_doctype": "Loan Interest Accrual",
+ "report_name": "Loan Interest Report",
+ "report_type": "Script Report",
+ "roles": [
+  {
+   "role": "System Manager"
+  },
+  {
+   "role": "Loan Manager"
+  }
+ ]
+}
\ No newline at end of file
diff --git a/erpnext/loan_management/report/loan_interest_report/loan_interest_report.py b/erpnext/loan_management/report/loan_interest_report/loan_interest_report.py
new file mode 100644
index 0000000000..e039fe82d3
--- /dev/null
+++ b/erpnext/loan_management/report/loan_interest_report/loan_interest_report.py
@@ -0,0 +1,87 @@
+# Copyright (c) 2013, Frappe Technologies Pvt. Ltd. and contributors
+# For license information, please see license.txt
+
+from __future__ import unicode_literals
+import frappe
+from frappe import _
+from frappe.utils import flt, get_first_day, getdate
+
+
+def execute(filters=None):
+	columns = get_columns(filters)
+	data = get_active_loan_details(filters)
+	return columns, data
+
+def get_columns(filters):
+	columns = [
+		{"label": _("Loan"), "fieldname": "loan", "fieldtype": "Link", "options": "Loan", "width": 160},
+		{"label": _("Applicant Type"), "fieldname": "applicant_type", "options": "DocType", "width": 100},
+		{"label": _("Applicant Name"), "fieldname": "applicant_name", "fieldtype": "Dynamic Link", "options": "applicant_type", "width": 150},
+		{"label": _("Loan Type"), "fieldname": "loan_type", "fieldtype": "Link", "options": "Loan Type", "width": 100},
+		{"label": _("Sanctioned Amount"), "fieldname": "sanctioned_amount", "fieldtype": "Currency", "options": "Currency", "width": 120},
+		{"label": _("Disbursed Amount"), "fieldname": "disbursed_amount", "fieldtype": "Currency", "options": "Currency", "width": 120},
+		{"label": _("Interest For The Month"), "fieldname": "month_interest", "fieldtype": "Currency", "options": "Currency", "width": 100},
+		{"label": _("Penalty For The Month"), "fieldname": "month_penalty", "fieldtype": "Currency", "options": "Currency", "width": 100},
+		{"label": _("Accrued Interest"), "fieldname": "accrued_interest", "fieldtype": "Currency", "options": "Currency", "width": 100},
+		{"label": _("Total Repayment"), "fieldname": "total_repayment", "fieldtype": "Currency", "options": "Currency", "width": 100},
+		{"label": _("Principal Outstanding"), "fieldname": "principal_outstanding", "fieldtype": "Currency", "options": "Currency", "width": 100},
+		{"label": _("Interest Outstanding"), "fieldname": "interest_outstanding", "fieldtype": "Currency", "options": "Currency", "width": 100},
+		{"label": _("Total Outstanding"), "fieldname": "total_payment", "fieldtype": "Currency", "options": "Currency", "width": 100},
+		{"label": _("Interest %"), "fieldname": "rate_of_interest", "fieldtype": "Percent", "width": 100},
+		{"label": _("Penalty Interest %"), "fieldname": "precentage_percentage", "fieldtype": "Percent", "width": 100},
+	]
+
+	return columns
+
+def get_active_loan_details(filters):
+	loan_details = frappe.get_all("Loan",
+		fields=["name as loan", "applicant_type", "applicant as applicant_name", "loan_type",
+		"disbursed_amount", "rate_of_interest", "total_payment", "total_principal_paid",
+		"total_interest_payable", "written_off_amount"],
+		filters={"status": ("!=", "Closed")})
+
+	loan_list = [d.loan for d in loan_details]
+
+	sanctioned_amount_map = get_sanctioned_amount_map()
+	payments = get_payments(loan_list)
+	accrual_map = get_interest_accruals(loan_list)
+
+	for loan in loan_details:
+		loan.update({
+			"sanctioned_amount": flt(sanctioned_amount_map.get(loan.applicant_name)),
+			"principal_outstanding": flt(loan.total_payment) - flt(loan.total_principal_paid) \
+				- flt(loan.total_interest_payable) - flt(loan.written_off_amount),
+			"total_repayment": flt(payments.get(loan.loan)),
+			"month_interest": flt(accrual_map.get(loan.loan, {}).get("month_interest")),
+			"accrued_interest": flt(accrual_map.get(loan.loan, {}).get("accrued_interest"))
+		})
+	return loan_details
+
+def get_sanctioned_amount_map():
+	return frappe._dict(frappe.get_all("Sanctioned Loan Amount", fields=["applicant", "sanctioned_amount_limit"],
+		as_list=1))
+
+def get_payments(loans):
+	return frappe._dict(frappe.get_all("Loan Repayment", fields=["against_loan", "sum(amount_paid)"],
+		filters={"against_loan": ("in", loans)}, group_by="against_loan", as_list=1))
+
+def get_interest_accruals(loans):
+	accrual_map = {}
+	current_month_start = get_first_day(getdate())
+
+	interest_accruals = frappe.get_all("Loan Interest Accrual",
+		fields=["loan", "interest_amount", "posting_date", "penalty"],
+		filters={"loan": ("in", loans)})
+
+	for entry in interest_accruals:
+		accrual_map.setdefault(entry.loan, {
+			'month_interest': 0.0,
+			'accrued_interest': 0.0
+		})
+
+		if getdate(entry.posting_date) < getdate(current_month_start):
+			accrual_map[entry.loan]['accrued_interest'] += entry.interest_amount
+		else:
+			accrual_map[entry.loan]['month_interest'] += entry.interest_amount
+
+	return accrual_map
\ No newline at end of file