In which account of Balance of payments, the payment of interest on loans are recorded?

The payment of interest on external loans is recorded in the Current Account of the balance of payments. Interest, dividends, and profits represent factor income (investment or primary income) paid for the use of foreign financial capital and therefore form part of the invisibles sub-account within the current account. By contrast, the borrowing and repayment of the loan principal itself are recorded in the capital account, unilateral transfers cover unrequited gifts and remittances, and the official reserve account tracks central bank reserve asset movements.