diff --git a/fineract-core/src/main/java/org/apache/fineract/infrastructure/configuration/api/GlobalConfigurationConstants.java b/fineract-core/src/main/java/org/apache/fineract/infrastructure/configuration/api/GlobalConfigurationConstants.java
index 979eea042..b41bf8a90 100644
--- a/fineract-core/src/main/java/org/apache/fineract/infrastructure/configuration/api/GlobalConfigurationConstants.java
+++ b/fineract-core/src/main/java/org/apache/fineract/infrastructure/configuration/api/GlobalConfigurationConstants.java
@@ -79,6 +79,7 @@ public final class GlobalConfigurationConstants {
     public static final String ASSET_OWNER_TRANSFER_OUTSTANDING_INTEREST_CALCULATION_STRATEGY = "outstanding-interest-calculation-strategy-for-external-asset-transfer";
     public static final String ALLOWED_LOAN_STATUSES_FOR_EXTERNAL_ASSET_TRANSFER = "allowed-loan-statuses-for-external-asset-transfer";
     public static final String ALLOWED_LOAN_STATUSES_OF_DELAYED_SETTLEMENT_FOR_EXTERNAL_ASSET_TRANSFER = "allowed-loan-statuses-of-delayed-settlement-for-external-asset-transfer";
+    public static final String ENABLE_ORIGINATOR_CREATION_DURING_LOAN_APPLICATION = "enable-originator-creation-during-loan-application";
 
     private GlobalConfigurationConstants() {}
 }
diff --git a/fineract-loan-origination/src/main/resources/db/changelog/tenant/module/loanorigination/module-changelog-master.xml b/fineract-loan-origination/src/main/resources/db/changelog/tenant/module/loanorigination/module-changelog-master.xml
index 0aa875a3f..b2e74e508 100644
--- a/fineract-loan-origination/src/main/resources/db/changelog/tenant/module/loanorigination/module-changelog-master.xml
+++ b/fineract-loan-origination/src/main/resources/db/changelog/tenant/module/loanorigination/module-changelog-master.xml
@@ -25,4 +25,5 @@
   <include relativeToChangelogFile="true" file="parts/0001_initial_schema.xml"/>
   <include relativeToChangelogFile="true" file="parts/0002_permissions.xml"/>
   <include relativeToChangelogFile="true" file="parts/0003_mapping_permissions.xml"/>
+  <include relativeToChangelogFile="true" file="parts/0004_add_global_config_originator_creation.xml"/>
 </databaseChangeLog>
diff --git a/fineract-loan-origination/src/main/resources/db/changelog/tenant/module/loanorigination/parts/0004_add_global_config_originator_creation.xml b/fineract-loan-origination/src/main/resources/db/changelog/tenant/module/loanorigination/parts/0004_add_global_config_originator_creation.xml
new file mode 100644
index 000000000..79a87679d
--- /dev/null
+++ b/fineract-loan-origination/src/main/resources/db/changelog/tenant/module/loanorigination/parts/0004_add_global_config_originator_creation.xml
@@ -0,0 +1,44 @@
+<?xml version="1.0" encoding="UTF-8"?>
+<!--
+
+    Licensed to the Apache Software Foundation (ASF) under one
+    or more contributor license agreements. See the NOTICE file
+    distributed with this work for additional information
+    regarding copyright ownership. The ASF licenses this file
+    to you under the Apache License, Version 2.0 (the
+    "License"); you may not use this file except in compliance
+    with the License. You may obtain a copy of the License at
+
+    http://www.apache.org/licenses/LICENSE-2.0
+
+    Unless required by applicable law or agreed to in writing,
+    software distributed under the License is distributed on an
+    "AS IS" BASIS, WITHOUT WARRANTIES OR CONDITIONS OF ANY
+    KIND, either express or implied. See the License for the
+    specific language governing permissions and limitations
+    under the License.
+
+-->
+<databaseChangeLog xmlns="http://www.liquibase.org/xml/ns/dbchangelog"
+                   xmlns:xsi="http://www.w3.org/2001/XMLSchema-instance"
+                   xsi:schemaLocation="http://www.liquibase.org/xml/ns/dbchangelog
+                   http://www.liquibase.org/xml/ns/dbchangelog/dbchangelog-4.3.xsd">
+    <changeSet author="fineract" id="1" context="postgresql">
+        <sql>
+            SELECT SETVAL('c_configuration_id_seq', COALESCE(MAX(id), 0)+1, false)
+            FROM c_configuration;
+        </sql>
+    </changeSet>
+    <changeSet author="fineract" id="2">
+        <insert tableName="c_configuration">
+            <column name="name" value="enable-originator-creation-during-loan-application"/>
+            <column name="value"/>
+            <column name="date_value"/>
+            <column name="string_value"/>
+            <column name="enabled" valueBoolean="false"/>
+            <column name="is_trap_door" valueBoolean="false"/>
+            <column name="description"
+                    value="When enabled, allows creating new loan originators on-the-fly during loan application if the provided externalId does not exist in the registry"/>
+        </insert>
+    </changeSet>
+</databaseChangeLog>
diff --git a/integration-tests/src/test/java/org/apache/fineract/integrationtests/GlobalConfigurationTest.java b/integration-tests/src/test/java/org/apache/fineract/integrationtests/GlobalConfigurationTest.java
index a4e0f702e..c0ddce87c 100644
--- a/integration-tests/src/test/java/org/apache/fineract/integrationtests/GlobalConfigurationTest.java
+++ b/integration-tests/src/test/java/org/apache/fineract/integrationtests/GlobalConfigurationTest.java
@@ -125,4 +125,35 @@ public class GlobalConfigurationTest {
         assertEquals(403, exception.getResponse().code());
         assertTrue(exception.getMessage().contains("error.msg.password.reset.days.value.must.be.greater.than.zero"));
     }
+
+    @Test
+    public void testOriginatorCreationConfigurationExists() {
+        String configName = GlobalConfigurationConstants.ENABLE_ORIGINATOR_CREATION_DURING_LOAN_APPLICATION;
+        GlobalConfigurationPropertyData config = globalConfigurationHelper.getGlobalConfigurationByName(configName);
+
+        Assertions.assertNotNull(config, "Configuration should exist");
+        assertEquals(configName, config.getName(), "Configuration name should match");
+        assertEquals(false, config.getEnabled(), "Configuration should be disabled by default");
+        assertEquals(false, config.getTrapDoor(), "Configuration should not be a trap door");
+    }
+
+    @Test
+    public void testOriginatorCreationConfigurationCanBeEnabled() {
+        String configName = GlobalConfigurationConstants.ENABLE_ORIGINATOR_CREATION_DURING_LOAN_APPLICATION;
+        GlobalConfigurationPropertyData config = globalConfigurationHelper.getGlobalConfigurationByName(configName);
+        Assertions.assertNotNull(config);
+
+        try {
+            globalConfigurationHelper.updateGlobalConfiguration(configName, new PutGlobalConfigurationsRequest().enabled(true));
+            GlobalConfigurationPropertyData enabledConfig = globalConfigurationHelper.getGlobalConfigurationByName(configName);
+            assertEquals(true, enabledConfig.getEnabled(), "Configuration should be enabled after update");
+
+            globalConfigurationHelper.updateGlobalConfiguration(configName, new PutGlobalConfigurationsRequest().enabled(false));
+            GlobalConfigurationPropertyData disabledConfig = globalConfigurationHelper.getGlobalConfigurationByName(configName);
+            assertEquals(false, disabledConfig.getEnabled(), "Configuration should be disabled after update");
+        } finally {
+            globalConfigurationHelper.updateGlobalConfiguration(configName,
+                    new PutGlobalConfigurationsRequest().enabled(config.getEnabled()));
+        }
+    }
 }
diff --git a/integration-tests/src/test/java/org/apache/fineract/integrationtests/common/GlobalConfigurationHelper.java b/integration-tests/src/test/java/org/apache/fineract/integrationtests/common/GlobalConfigurationHelper.java
index 831ae45fc..10f3290aa 100644
--- a/integration-tests/src/test/java/org/apache/fineract/integrationtests/common/GlobalConfigurationHelper.java
+++ b/integration-tests/src/test/java/org/apache/fineract/integrationtests/common/GlobalConfigurationHelper.java
@@ -585,6 +585,14 @@ public class GlobalConfigurationHelper {
                 "ACTIVE,TRANSFER_IN_PROGRESS,TRANSFER_ON_HOLD,OVERPAID,CLOSED_OBLIGATIONS_MET");
         defaults.add(allowedLoanStatusesForDelayedSettlementExternalAssetTransfer);
 
+        HashMap<String, Object> enableOriginatorCreationDuringLoanApplication = new HashMap<>();
+        enableOriginatorCreationDuringLoanApplication.put("name",
+                GlobalConfigurationConstants.ENABLE_ORIGINATOR_CREATION_DURING_LOAN_APPLICATION);
+        enableOriginatorCreationDuringLoanApplication.put("value", 0L);
+        enableOriginatorCreationDuringLoanApplication.put("enabled", false);
+        enableOriginatorCreationDuringLoanApplication.put("trapDoor", false);
+        defaults.add(enableOriginatorCreationDuringLoanApplication);
+
         return defaults;
     }