diff --git a/erpnext/loan_management/doctype/loan/loan.json b/erpnext/loan_management/doctype/loan/loan.json
index 0e8feba2f12..b0edfcfece0 100644
--- a/erpnext/loan_management/doctype/loan/loan.json
+++ b/erpnext/loan_management/doctype/loan/loan.json
@@ -17,6 +17,7 @@
   "posting_date",
   "status",
   "repay_from_salary",
+  "manually_update_paid_amount_in_salary_slip",
   "section_break_8",
   "loan_type",
   "loan_amount",
@@ -410,16 +411,23 @@
    "fieldname": "is_npa",
    "fieldtype": "Check",
    "label": "Is NPA"
+  },
+  {
+   "allow_on_submit": 1,
+   "default": "0",
+   "depends_on": "repay_from_salary",
+   "fieldname": "manually_update_paid_amount_in_salary_slip",
+   "fieldtype": "Check",
+   "label": "Manually Update Paid Amount in Salary Slip"
   }
  ],
  "index_web_pages_for_search": 1,
  "is_submittable": 1,
  "links": [],
- "modified": "2022-06-30 12:04:13.728880",
+ "modified": "2022-09-12 03:36:49.145014",
  "modified_by": "Administrator",
  "module": "Loan Management",
  "name": "Loan",
- "naming_rule": "Expression (old style)",
  "owner": "Administrator",
  "permissions": [
   {
@@ -445,6 +453,5 @@
  "search_fields": "posting_date",
  "sort_field": "creation",
  "sort_order": "DESC",
- "states": [],
  "track_changes": 1
-}
+}
\ No newline at end of file
diff --git a/erpnext/payroll/doctype/salary_slip/salary_slip.py b/erpnext/payroll/doctype/salary_slip/salary_slip.py
index 14a2a3ae398..5442bf201c8 100644
--- a/erpnext/payroll/doctype/salary_slip/salary_slip.py
+++ b/erpnext/payroll/doctype/salary_slip/salary_slip.py
@@ -587,7 +587,7 @@ class SalarySlip(TransactionBase):
 		if self.salary_structure:
 			self.calculate_component_amounts("deductions")
 
-		self.set_loan_repayment()
+		self.add_applicable_loans()
 		self.set_precision_for_component_amounts()
 		self.set_net_pay()
 
@@ -1370,44 +1370,33 @@ class SalarySlip(TransactionBase):
 
 		return joining_date, relieving_date
 
-	def set_loan_repayment(self):
+	def add_applicable_loans(self):
 		self.total_loan_repayment = 0
 		self.total_interest_amount = 0
 		self.total_principal_amount = 0
 
-		self.set("loans", [])
+		loans = [d.loan for d in self.get("loans")]
+
 		for loan in self.get_loan_details():
-			amounts = calculate_amounts(loan.name, self.posting_date, "Regular Payment")
-
-			if (amounts["interest_amount"] or amounts["payable_principal_amount"]) and (
-				amounts["payable_principal_amount"] + amounts["interest_amount"]
-				> amounts["written_off_amount"]
-			):
-
-				if amounts["interest_amount"] > amounts["written_off_amount"]:
-					amounts["interest_amount"] -= amounts["written_off_amount"]
-					amounts["written_off_amount"] = 0
-				else:
-					amounts["written_off_amount"] -= amounts["interest_amount"]
-					amounts["interest_amount"] = 0
-
-				if amounts["payable_principal_amount"] > amounts["written_off_amount"]:
-					amounts["payable_principal_amount"] -= amounts["written_off_amount"]
-					amounts["written_off_amount"] = 0
-				else:
-					amounts["written_off_amount"] -= amounts["payable_principal_amount"]
-					amounts["payable_principal_amount"] = 0
-
-				self.append(
-					"loans",
-					{
-						"loan": loan.name,
-						"interest_amount": amounts["interest_amount"],
-						"principal_amount": amounts["payable_principal_amount"],
-						"loan_account": loan.loan_account,
-						"interest_income_account": loan.interest_income_account,
-					},
-				)
+			if loan.name not in loans:
+				amounts = calculate_amounts(loan.name, self.posting_date, "Regular Payment")
+				if (
+					amounts["interest_amount"] + amounts["payable_principal_amount"]
+					> amounts["written_off_amount"]
+				):
+					self.append(
+						"loans",
+						{
+							"loan": loan.name,
+							"interest_amount": amounts["interest_amount"],
+							"principal_amount": amounts["payable_principal_amount"],
+							"total_payment": amounts["interest_amount"] + amounts["payable_principal_amount"]
+							if not loan.manually_update_paid_amount_in_salary_slip
+							else 0,
+							"loan_account": loan.loan_account,
+							"interest_income_account": loan.interest_income_account,
+						},
+					)
 
 		for payment in self.get("loans"):
 			amounts = calculate_amounts(payment.loan, self.posting_date, "Regular Payment")
@@ -1432,7 +1421,14 @@ class SalarySlip(TransactionBase):
 	def get_loan_details(self):
 		loan_details = frappe.get_all(
 			"Loan",
-			fields=["name", "interest_income_account", "loan_account", "loan_type", "is_term_loan"],
+			fields=[
+				"name",
+				"interest_income_account",
+				"loan_account",
+				"loan_type",
+				"is_term_loan",
+				"manually_update_paid_amount_in_salary_slip",
+			],
 			filters={
 				"applicant": self.employee,
 				"docstatus": 1,