diff --git a/erpnext/payroll/doctype/payroll_entry/test_payroll_entry.py b/erpnext/payroll/doctype/payroll_entry/test_payroll_entry.py
index 35cea017e8c..d94edef1b07 100644
--- a/erpnext/payroll/doctype/payroll_entry/test_payroll_entry.py
+++ b/erpnext/payroll/doctype/payroll_entry/test_payroll_entry.py
@@ -295,6 +295,7 @@ class TestPayrollEntry(FrappeTestCase):
 				loan_account="Loan Account - _TC",
 				interest_income_account="Interest Income Account - _TC",
 				penalty_income_account="Penalty Income Account - _TC",
+				repayment_schedule_type="Monthly as per repayment start date",
 			)
 
 		loan = create_loan(