diff --git a/fineract-provider/src/main/java/org/apache/fineract/portfolio/loanaccount/domain/Loan.java b/fineract-provider/src/main/java/org/apache/fineract/portfolio/loanaccount/domain/Loan.java
index fb0295f50..f880155b1 100755
--- a/fineract-provider/src/main/java/org/apache/fineract/portfolio/loanaccount/domain/Loan.java
+++ b/fineract-provider/src/main/java/org/apache/fineract/portfolio/loanaccount/domain/Loan.java
@@ -2738,7 +2738,7 @@ public class Loan extends AbstractPersistableCustom<Long> {
 
         validateActivityNotBeforeClientOrGroupTransferDate(LoanEvent.LOAN_DISBURSED, disbursedOn);
 
-        if (disbursedOn.isAfter(new LocalDate())) {
+        if (disbursedOn.isAfter(DateUtils.getLocalDateOfTenant())) {
             final String errorMessage = "The date on which a loan with identifier : " + this.accountNumber
                     + " is disbursed cannot be in the future.";
             throw new InvalidLoanStateTransitionException("disbursal", "cannot.be.a.future.date", errorMessage, disbursedOn);