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 e0428b0d8..40ad978d5 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
@@ -6227,7 +6227,13 @@ public class Loan extends AbstractPersistable<Long> {
             }   
             
         }
-
+        
+        for(LoanDisbursementDetails loanDisbursementDetails : getDisbursementDetails()){
+            if(loanDisbursementDetails.actualDisbursementDate() == null){
+                 totalPrincipal = Money.of(currency, totalPrincipal.getAmount().subtract(loanDisbursementDetails.principal()));
+            }
+        }
+        
         LocalDate installmentStartDate = getDisbursementDate();
 
         if (newInstallments.size() > 0) {
diff --git a/fineract-provider/src/main/java/org/apache/fineract/portfolio/loanaccount/service/LoanWritePlatformServiceJpaRepositoryImpl.java b/fineract-provider/src/main/java/org/apache/fineract/portfolio/loanaccount/service/LoanWritePlatformServiceJpaRepositoryImpl.java
index c5ea298c7..3fee3c990 100755
--- a/fineract-provider/src/main/java/org/apache/fineract/portfolio/loanaccount/service/LoanWritePlatformServiceJpaRepositoryImpl.java
+++ b/fineract-provider/src/main/java/org/apache/fineract/portfolio/loanaccount/service/LoanWritePlatformServiceJpaRepositoryImpl.java
@@ -33,7 +33,6 @@ import java.util.Set;
 
 import org.apache.commons.lang.StringUtils;
 import org.apache.fineract.accounting.journalentry.service.JournalEntryWritePlatformService;
-import org.apache.fineract.infrastructure.codes.data.CodeValueData;
 import org.apache.fineract.infrastructure.codes.domain.CodeValue;
 import org.apache.fineract.infrastructure.codes.domain.CodeValueRepositoryWrapper;
 import org.apache.fineract.infrastructure.configuration.domain.ConfigurationDomainService;
@@ -2903,6 +2902,14 @@ public class LoanWritePlatformServiceJpaRepositoryImpl implements LoanWritePlatf
 
         String noteText = this.fromApiJsonHelper.extractStringNamed(LoanApiConstants.noteParamName, element);
         LoanRescheduleRequest loanRescheduleRequest = null;
+        for (LoanDisbursementDetails loanDisbursementDetails : loan.getDisbursementDetails()) {
+            if (!loanDisbursementDetails.expectedDisbursementDateAsLocalDate().isAfter(transactionDate)
+                    && loanDisbursementDetails.actualDisbursementDate() == null) {
+                final String defaultUserMessage = "The loan with undisbrsed tranche before foreclosure cannot be foreclosed.";
+                throw new LoanForeclosureException("loan.with.undisbursed.tranche.before.foreclosure.cannot.be.foreclosured",
+                        defaultUserMessage, transactionDate);
+            }
+        }
         this.loanScheduleHistoryWritePlatformService.createAndSaveLoanScheduleArchive(loan.getRepaymentScheduleInstallments(),
                 loan, loanRescheduleRequest);