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Yes vishwas but the scope of what Sander is looking for here is much simpler. Their approach to 'top up' loan they need is really to clear off the remainder of an existing loan and open up a new loan for the remainder.
So existing loan has 5,000 left outstanding - a new loan of 30,000 is provided, 5000 is paid of existing loan and 25,000 is disbursed to the client through new loan. So 30,000 is the loan and the interest should be calculated on that yet only 25,000 ends up in clients hands