diff --git a/erpnext/loan_management/doctype/loan_repayment/loan_repayment.py b/erpnext/loan_management/doctype/loan_repayment/loan_repayment.py
index 018832c..e9fa2ad 100644
--- a/erpnext/loan_management/doctype/loan_repayment/loan_repayment.py
+++ b/erpnext/loan_management/doctype/loan_repayment/loan_repayment.py
@@ -519,6 +519,8 @@
 	if not posting_date:
 		posting_date = getdate()
 
+	precision = cint(frappe.db.get_default("currency_precision")) or 2
+
 	unpaid_accrued_entries = frappe.db.sql(
 		"""
 			SELECT name, posting_date, interest_amount - paid_interest_amount as interest_amount,
@@ -539,6 +541,13 @@
 		as_dict=1,
 	)
 
+	# Skip entries with zero interest amount & payable principal amount
+	unpaid_accrued_entries = [
+		d
+		for d in unpaid_accrued_entries
+		if flt(d.interest_amount, precision) > 0 or flt(d.payable_principal_amount, precision) > 0
+	]
+
 	return unpaid_accrued_entries