@NellieCruise 

There is no reason to write a check to pay off the loan.  It will create a payment you didn't make.

There are a couple of ways this can be recorded.  You can create a bank deposit.  Enter the old loan payable balance as a negative amount and the new loan payable amount as a positive amount, leaving the difference as the deposit into your bank account.

Or, you can create a journal entry: credit the new loan payable account for the full loan amount, debit the old loan for the balance and debit the bank account for the difference that should match the deposit.