Bank loan in accounting transactions?

When you receive the loan:
Debit Cash for the amount received
Credit Notes Payable for the amount of loan

To acrue the interest:
Debit Interest Expense for the amount of interest acrued
Credit Interest Payable for the amount acrued

To record the payment:
Debit Notes Payable for the amount of principal paid
Debit Interest Payable (if interest was acrued) or Interest Expense for the amount of interest
Credit Cash for the total amount paid.