diff --git a/mifosng-db/patches-beta-3-heavens-family/patch-0001-fund-and-loanproduct-changes.sql b/mifosng-db/patches-beta-3-heavens-family/patch-0001-fund-and-loanproduct-changes.sql
new file mode 100644
index 000000000..e034ad547
--- /dev/null
+++ b/mifosng-db/patches-beta-3-heavens-family/patch-0001-fund-and-loanproduct-changes.sql
@@ -0,0 +1,33 @@
+-- create fund table
+DROP TABLE IF EXISTS `mifosngprovider`.`org_fund`;
+CREATE TABLE `org_fund` (
+  `id` bigint(20) NOT NULL AUTO_INCREMENT,
+  `org_id` bigint(20) NOT NULL,
+  `name` varchar(255) DEFAULT NULL,
+  `external_id` varchar(100) DEFAULT NULL,
+  `createdby_id` bigint(20) DEFAULT NULL,
+  `created_date` datetime DEFAULT NULL,
+  `lastmodifiedby_id` bigint(20) DEFAULT NULL,
+  `lastmodified_date` datetime DEFAULT NULL,
+  PRIMARY KEY (`id`),
+  UNIQUE KEY `fund_name_org` (`org_id`,`name`),
+  UNIQUE KEY `fund_externalid_org` (`org_id`,`external_id`),
+  KEY `FK4E56DB40541F0A56` (`createdby_id`),
+  KEY `FK4E56DB4054DF2770` (`org_id`),
+  KEY `FK4E56DB408F889C3F` (`lastmodifiedby_id`),
+  CONSTRAINT `FK4E56DB408F889C3F` FOREIGN KEY (`lastmodifiedby_id`) REFERENCES `admin_appuser` (`id`),
+  CONSTRAINT `FK4E56DB40541F0A56` FOREIGN KEY (`createdby_id`) REFERENCES `admin_appuser` (`id`),
+  CONSTRAINT `FK4E56DB4054DF2770` FOREIGN KEY (`org_id`) REFERENCES `org_organisation` (`id`)
+) ENGINE=InnoDB AUTO_INCREMENT=1 DEFAULT CHARSET=utf8;
+
+-- example of dropping fund column/index/foreign key 
+-- alter table `mifosngprovider`.`portfolio_product_loan` 
+-- DROP FOREIGN KEY `FKA6A8A7D77240145`,
+-- DROP INDEX `FKA6A8A7D77240145`,
+-- drop column `fund_id`;
+
+-- associate fund table with loan products making it fund optional at database level
+alter table `mifosngprovider`.`portfolio_product_loan`
+add column `fund_id` bigint(20) DEFAULT NULL,
+add KEY `FKA6A8A7D77240145` (`fund_id`),
+add CONSTRAINT `FKA6A8A7D77240145` FOREIGN KEY (`fund_id`) REFERENCES `org_fund` (`id`);
\ No newline at end of file
diff --git a/mifosng-provider/src/main/resources/META-INF/persistence.xml b/mifosng-provider/src/main/resources/META-INF/persistence.xml
index b24dfef18..dd30223a8 100644
--- a/mifosng-provider/src/main/resources/META-INF/persistence.xml
+++ b/mifosng-provider/src/main/resources/META-INF/persistence.xml
@@ -4,7 +4,9 @@
 		<provider>org.hibernate.ejb.HibernatePersistence</provider>
 		<properties>
          <property name="hibernate.dialect" value="org.hibernate.dialect.MySQLInnoDBDialect"/>
+         <!-- 
          <property name="hibernate.hbm2ddl.auto" value="update"/>
+         -->
          <property name="hibernate.jdbc.batch_size" value="200"/>
          <property name="hibernate.order_inserts" value="true"/>
       </properties>