diff --git a/mifosng-provider/src/main/java/org/mifosplatform/portfolio/loanaccount/loanschedule/domain/AbstractLoanScheduleGenerator.java b/mifosng-provider/src/main/java/org/mifosplatform/portfolio/loanaccount/loanschedule/domain/AbstractLoanScheduleGenerator.java
index f4c5bdda3..958ce5c85 100644
--- a/mifosng-provider/src/main/java/org/mifosplatform/portfolio/loanaccount/loanschedule/domain/AbstractLoanScheduleGenerator.java
+++ b/mifosng-provider/src/main/java/org/mifosplatform/portfolio/loanaccount/loanschedule/domain/AbstractLoanScheduleGenerator.java
@@ -122,7 +122,6 @@ public abstract class AbstractLoanScheduleGenerator implements LoanScheduleGener
         int daysCalcForInstallmentNumber = 0;
         LocalDate scheduleStartDateAsPerFrequency = periodStartDate;
         while (!outstandingBalance.isZero()) {
-            isFirstRepayment = false;
             // to insert a new schedule between actual schedule to collect
             // interest(till the transaction date) first on a payment
             boolean recalculatedInterestComponent = false;
@@ -143,6 +142,7 @@ public abstract class AbstractLoanScheduleGenerator implements LoanScheduleGener
             if (interestonlyPeriodDetail == null) {
                 actualRepaymentDate = this.scheduledDateGenerator.generateNextRepaymentDate(actualRepaymentDate, loanApplicationTerms,
                         isFirstRepayment);
+                isFirstRepayment = false;
                 scheduledDueDate = this.scheduledDateGenerator.adjustRepaymentDate(actualRepaymentDate, loanApplicationTerms,
                         isHolidayEnabled, holidays, workingDays);
                 scheduledDueDateAsPerFrequency = scheduledDueDate;
@@ -1135,9 +1135,9 @@ public abstract class AbstractLoanScheduleGenerator implements LoanScheduleGener
             if (scheduleInstallments.size() == 1) {
                 LoanRepaymentScheduleInstallment installment = scheduleInstallments.get(0);
                 if (installment.getInstallmentNumber() == 1
-                        && (installment.getDueDate().isAfter(loanTransaction.getTransactionDate()) || (installment
+                        && (installment.getDueDate().isAfter(processTransactionsForInterestCompound) || (installment
                                 .isRecalculatedInterestComponent() && installment.getDueDate()
-                                .isEqual(loanTransaction.getTransactionDate())))) {
+                                .isEqual(processTransactionsForInterestCompound)))) {
                     isBeforeFirstInstallment = true;
                 }
             }
@@ -1395,11 +1395,13 @@ public abstract class AbstractLoanScheduleGenerator implements LoanScheduleGener
 
     private LocalDate getNextRestScheduleDate(LocalDate startDate, LoanApplicationTerms loanApplicationTerms,
             final boolean isHolidayEnabled, final List<Holiday> holidays, final WorkingDays workingDays) {
-        CalendarInstance calendarInstance = loanApplicationTerms.getRestCalendarInstance();
-        LocalDate nextScheduleDate = CalendarUtils.getNextScheduleDate(calendarInstance.getCalendar(), startDate);
+        LocalDate nextScheduleDate = null;
         if (loanApplicationTerms.getRecalculationFrequencyType().isSameAsRepayment()) {
-            nextScheduleDate = this.scheduledDateGenerator.adjustRepaymentDate(nextScheduleDate, loanApplicationTerms, isHolidayEnabled,
-                    holidays, workingDays);
+            nextScheduleDate = this.scheduledDateGenerator.generateNextScheduleDateStartingFromDisburseDate(startDate,
+                    loanApplicationTerms, isHolidayEnabled, holidays, workingDays);
+        } else {
+            CalendarInstance calendarInstance = loanApplicationTerms.getRestCalendarInstance();
+            nextScheduleDate = CalendarUtils.getNextScheduleDate(calendarInstance.getCalendar(), startDate);
         }
 
         return nextScheduleDate;
diff --git a/mifosng-provider/src/main/java/org/mifosplatform/portfolio/loanaccount/loanschedule/domain/DefaultScheduledDateGenerator.java b/mifosng-provider/src/main/java/org/mifosplatform/portfolio/loanaccount/loanschedule/domain/DefaultScheduledDateGenerator.java
index 8f047f829..e777a8dd1 100644
--- a/mifosng-provider/src/main/java/org/mifosplatform/portfolio/loanaccount/loanschedule/domain/DefaultScheduledDateGenerator.java
+++ b/mifosng-provider/src/main/java/org/mifosplatform/portfolio/loanaccount/loanschedule/domain/DefaultScheduledDateGenerator.java
@@ -104,25 +104,25 @@ public class DefaultScheduledDateGenerator implements ScheduledDateGenerator {
                 isScheduledDate = (diff % repaidEvery) == 0;
             break;
             case WEEKS:
-                int weekDiff =Weeks.weeksBetween(startDate, date).getWeeks();
+                int weekDiff = Weeks.weeksBetween(startDate, date).getWeeks();
                 isScheduledDate = (weekDiff % repaidEvery) == 0;
-                if(isScheduledDate){
+                if (isScheduledDate) {
                     LocalDate modifiedDate = startDate.plusWeeks(weekDiff);
                     isScheduledDate = modifiedDate.isEqual(date);
                 }
             break;
             case MONTHS:
-                int monthDiff =Months.monthsBetween(startDate, date).getMonths();
+                int monthDiff = Months.monthsBetween(startDate, date).getMonths();
                 isScheduledDate = (monthDiff % repaidEvery) == 0;
-                if(isScheduledDate){
+                if (isScheduledDate) {
                     LocalDate modifiedDate = startDate.plusMonths(monthDiff);
                     isScheduledDate = modifiedDate.isEqual(date);
                 }
             break;
             case YEARS:
-                int yearDiff =Years.yearsBetween(startDate, date).getYears();
+                int yearDiff = Years.yearsBetween(startDate, date).getYears();
                 isScheduledDate = (yearDiff % repaidEvery) == 0;
-                if(isScheduledDate){
+                if (isScheduledDate) {
                     LocalDate modifiedDate = startDate.plusYears(yearDiff);
                     isScheduledDate = modifiedDate.isEqual(date);
                 }
@@ -158,4 +158,18 @@ public class DefaultScheduledDateGenerator implements ScheduledDateGenerator {
 
         return idealDisbursementDate;
     }
+
+    @Override
+    public LocalDate generateNextScheduleDateStartingFromDisburseDate(LocalDate lastRepaymentDate,
+            LoanApplicationTerms loanApplicationTerms, boolean isHolidayEnabled, List<Holiday> holidays, WorkingDays workingDays) {
+
+        LocalDate generatedDate = loanApplicationTerms.getExpectedDisbursementDate();
+        boolean isFirstRepayment = true;
+        while (!generatedDate.isAfter(lastRepaymentDate)) {
+            generatedDate = generateNextRepaymentDate(generatedDate, loanApplicationTerms, isFirstRepayment);
+            isFirstRepayment = false;
+        }
+        generatedDate = adjustRepaymentDate(generatedDate, loanApplicationTerms, isHolidayEnabled, holidays, workingDays);
+        return generatedDate;
+    }
 }
\ No newline at end of file
diff --git a/mifosng-provider/src/main/java/org/mifosplatform/portfolio/loanaccount/loanschedule/domain/ScheduledDateGenerator.java b/mifosng-provider/src/main/java/org/mifosplatform/portfolio/loanaccount/loanschedule/domain/ScheduledDateGenerator.java
index 16bb22093..1456e85d4 100644
--- a/mifosng-provider/src/main/java/org/mifosplatform/portfolio/loanaccount/loanschedule/domain/ScheduledDateGenerator.java
+++ b/mifosng-provider/src/main/java/org/mifosplatform/portfolio/loanaccount/loanschedule/domain/ScheduledDateGenerator.java
@@ -29,4 +29,6 @@ public interface ScheduledDateGenerator {
 
     Boolean isDateFallsInSchedule(PeriodFrequencyType frequency, int repaidEvery, LocalDate startDate, LocalDate date);
 
+    LocalDate generateNextScheduleDateStartingFromDisburseDate(LocalDate lastRepaymentDate, LoanApplicationTerms loanApplicationTerms,
+            boolean isHolidayEnabled, List<Holiday> holidays, final WorkingDays workingDays);
 }