diff --git a/api-docs/apiLive.htm b/api-docs/apiLive.htm
index 4a9649a79..27a3e0400 100644
--- a/api-docs/apiLive.htm
+++ b/api-docs/apiLive.htm
@@ -11072,6 +11072,26 @@ Request Body:
 			            		This field is mandatory if <i>chargeTimeType</i> is of type <b>Monthly Fee</b>
 			            	</td>
 			            </tr>
+						<tr class=alt>
+							<td>minCap</td>
+                        </tr>	
+                        <tr> 
+							<td class=fielddesc>minimum cap: a 2% fee with a minimum cap of 500<br/>
+							    In case of a 5000 loan, the 2% is 100, and therefore automatically 500 is used as the value of the charge.<br/>
+								This field is optional and can be used along when ChargeCalculationType equals (2) PERCENT_OF_AMOUNT  
+							</td>
+							 
+
+                        </tr>	
+                        <tr class=alt>
+							<td>maxCap</td>
+                        </tr>	
+                        <tr>
+							<td class=fielddesc>maximum cap: A 2% fee, with a maximum of 2000.  <br/>
+							    In case of a 150000 loan, the 2% adds up to 3000 charge, and therefore the maximum cap of 2000 will be used. <br />
+								This field is optional and can be used along when ChargeCalculationType equals (2) PERCENT_OF_AMOUNT 
+							</td>
+                        </tr>						
 					</table>
 				</div>
 			</div>
diff --git a/mifosng-provider/src/main/java/org/mifosplatform/portfolio/charge/domain/Charge.java b/mifosng-provider/src/main/java/org/mifosplatform/portfolio/charge/domain/Charge.java
index 9b59c3d80..820754e81 100755
--- a/mifosng-provider/src/main/java/org/mifosplatform/portfolio/charge/domain/Charge.java
+++ b/mifosng-provider/src/main/java/org/mifosplatform/portfolio/charge/domain/Charge.java
@@ -123,8 +123,7 @@ public class Charge extends AbstractPersistable<Long> {
         this.penalty = penalty;
         this.active = active;
         this.chargePaymentMode = paymentMode == null ? null : paymentMode.getValue();
-        this.minCap = minCap;
-        this.maxCap = maxCap;
+
 
         final List<ApiParameterError> dataValidationErrors = new ArrayList<ApiParameterError>();
         final DataValidatorBuilder baseDataValidator = new DataValidatorBuilder(dataValidationErrors).resource("charges");
@@ -162,6 +161,10 @@ public class Charge extends AbstractPersistable<Long> {
                         .failWithCodeNoParameterAddedToErrorCode("not.allowed.charge.time.for.loan");
             }
         }
+        if(isPercentageOfAmount()){
+            this.minCap = minCap;
+            this.maxCap = maxCap;
+        }
 
         if (!dataValidationErrors.isEmpty()) { throw new PlatformApiDataValidationException(dataValidationErrors); }
     }