diff --git a/fineract-e2e-tests-runner/src/test/resources/features/LoanCapitalizedIncome.feature b/fineract-e2e-tests-runner/src/test/resources/features/LoanCapitalizedIncome.feature
index f9d35d130..5a6896172 100644
--- a/fineract-e2e-tests-runner/src/test/resources/features/LoanCapitalizedIncome.feature
+++ b/fineract-e2e-tests-runner/src/test/resources/features/LoanCapitalizedIncome.feature
@@ -1699,7 +1699,6 @@ Feature: Capitalized Income
       | 100.0  | 83.33            | 16.67               | 0.0             | 0.0                |
 
     When Loan Pay-off is made on "26 January 2024"
-    And Customer makes "AUTOPAY" repayment on "26 January 2024" with 225 EUR transaction amount
     Then Loan is closed with zero outstanding balance and it's all installments have obligations met
 
   @TestRailId:C3673
diff --git a/fineract-progressive-loan/src/main/java/org/apache/fineract/portfolio/loanaccount/loanschedule/domain/ProgressiveLoanScheduleGenerator.java b/fineract-progressive-loan/src/main/java/org/apache/fineract/portfolio/loanaccount/loanschedule/domain/ProgressiveLoanScheduleGenerator.java
index 71c2fa731..590c9e606 100644
--- a/fineract-progressive-loan/src/main/java/org/apache/fineract/portfolio/loanaccount/loanschedule/domain/ProgressiveLoanScheduleGenerator.java
+++ b/fineract-progressive-loan/src/main/java/org/apache/fineract/portfolio/loanaccount/loanschedule/domain/ProgressiveLoanScheduleGenerator.java
@@ -205,10 +205,19 @@ public class ProgressiveLoanScheduleGenerator implements LoanScheduleGenerator {
         ProgressiveLoanInterestScheduleModel model = savedModel.orElseThrow();
         OutstandingDetails outstandingAmounts = emiCalculator.getOutstandingAmountsTillDate(model, transactionDate);
         // TODO: We should add all the past due outstanding amounts as well
+
         OutstandingAmountsDTO result = new OutstandingAmountsDTO(currency) //
                 .principal(outstandingAmounts.getOutstandingPrincipal()) //
                 .interest(outstandingAmounts.getOutstandingInterest());//
 
+        if (loan.isProgressiveSchedule()) {
+            final LoanRepaymentScheduleInstallment downPaymentInstallment = loan.getRepaymentScheduleInstallments(i -> i.isDownPayment())
+                    .stream().findFirst().orElse(null);
+            if (downPaymentInstallment != null) {
+                result.principal(downPaymentInstallment.getPrincipalOutstanding(loan.getCurrency())
+                        .add(outstandingAmounts.getOutstandingPrincipal()));
+            }
+        }
         // We need to deduct any paid amount if there is no interest recalculation
         if (!loan.isInterestRecalculationEnabled()) {
             BigDecimal paidInterest = installments.stream().map(LoanRepaymentScheduleInstallment::getInterestPaid).reduce(BigDecimal.ZERO,