diff --git a/fineract-provider/src/main/java/org/apache/fineract/portfolio/loanaccount/domain/transactionprocessor/AbstractLoanRepaymentScheduleTransactionProcessor.java b/fineract-provider/src/main/java/org/apache/fineract/portfolio/loanaccount/domain/transactionprocessor/AbstractLoanRepaymentScheduleTransactionProcessor.java
index a4fb6f277..ecb992846 100644
--- a/fineract-provider/src/main/java/org/apache/fineract/portfolio/loanaccount/domain/transactionprocessor/AbstractLoanRepaymentScheduleTransactionProcessor.java
+++ b/fineract-provider/src/main/java/org/apache/fineract/portfolio/loanaccount/domain/transactionprocessor/AbstractLoanRepaymentScheduleTransactionProcessor.java
@@ -109,7 +109,10 @@ public abstract class AbstractLoanRepaymentScheduleTransactionProcessor implemen
                 LocalDate startDate = disbursementDate;
                 for (final LoanRepaymentScheduleInstallment installment : installments) {
                     for (final LoanCharge loanCharge : transferCharges) {
-                        if (loanCharge.isDueForCollectionFromAndUpToAndIncluding(startDate, installment.getDueDate())) {
+                        if (loanCharge.isDueForCollectionFromAndUpToAndIncluding(startDate, installment.getDueDate())
+                                // Special case for Loan Charges (Due Date) added the same disbursement date
+                                || (startDate.equals(disbursementDate) && loanCharge.getDueDate() != null
+                                        && loanCharge.getDueDate().equals(disbursementDate))) {
                             Money amountForProcess = loanCharge.getAmount(currency);
                             if (amountForProcess.isGreaterThan(loanTransaction.getAmount(currency))) {
                                 amountForProcess = loanTransaction.getAmount(currency);
diff --git a/integration-tests/src/test/java/org/apache/fineract/integrationtests/LoanChargeSpecificDueDateTest.java b/integration-tests/src/test/java/org/apache/fineract/integrationtests/LoanChargeSpecificDueDateTest.java
index 7f0dcbeca..1b5df8419 100644
--- a/integration-tests/src/test/java/org/apache/fineract/integrationtests/LoanChargeSpecificDueDateTest.java
+++ b/integration-tests/src/test/java/org/apache/fineract/integrationtests/LoanChargeSpecificDueDateTest.java
@@ -31,6 +31,7 @@ import lombok.extern.slf4j.Slf4j;
 import org.apache.fineract.client.models.GetLoanProductsProductIdResponse;
 import org.apache.fineract.client.models.GetLoansLoanIdResponse;
 import org.apache.fineract.client.models.PostChargesResponse;
+import org.apache.fineract.client.models.PostLoansLoanIdChargesChargeIdResponse;
 import org.apache.fineract.client.models.PostLoansLoanIdChargesResponse;
 import org.apache.fineract.client.models.PostLoansLoanIdTransactionsResponse;
 import org.apache.fineract.integrationtests.common.ClientHelper;
@@ -169,6 +170,69 @@ public class LoanChargeSpecificDueDateTest {
 
     }
 
+    @Test
+    public void testApplyAndWaiveLoanSpecificDueDatePenaltyWithDisbursementDate() {
+
+        final LocalDate todaysDate = Utils.getLocalDateOfTenant();
+
+        // Client and Loan account creation
+        final Integer clientId = ClientHelper.createClient(this.requestSpec, this.responseSpec, "01 January 2012");
+        final GetLoanProductsProductIdResponse getLoanProductsProductResponse = createLoanProduct(loanTransactionHelper, null);
+        assertNotNull(getLoanProductsProductResponse);
+
+        // Older date to have more than one overdue installment
+        LocalDate transactionDate = todaysDate;
+        String operationDate = Utils.dateFormatter.format(transactionDate);
+        log.info("Operation date {}", transactionDate);
+
+        // Create Loan Account
+        final Integer loanId = createLoanAccount(loanTransactionHelper, clientId.toString(),
+                getLoanProductsProductResponse.getId().toString(), operationDate);
+
+        // Get loan details
+        GetLoansLoanIdResponse getLoansLoanIdResponse = loanTransactionHelper.getLoan(requestSpec, responseSpec, loanId);
+        validateLoanAccount(getLoansLoanIdResponse, Double.valueOf(principalAmount), Double.valueOf("0.00"), true);
+
+        // Apply Loan Charge with specific due date
+        final String feeAmount = "10.00";
+        String payloadJSON = ChargesHelper.getLoanSpecifiedDueDateJSON(ChargesHelper.CHARGE_CALCULATION_TYPE_FLAT, feeAmount, true);
+        final PostChargesResponse postChargesResponse = ChargesHelper.createLoanCharge(requestSpec, responseSpec, payloadJSON);
+        assertNotNull(postChargesResponse);
+        final Long chargeId = postChargesResponse.getResourceId();
+        assertNotNull(chargeId);
+
+        payloadJSON = LoanTransactionHelper.getSpecifiedDueDateChargesForLoanAsJSON(chargeId.toString(), operationDate, feeAmount);
+        PostLoansLoanIdChargesResponse postLoansLoanIdChargesResponse = loanTransactionHelper.addChargeForLoan(loanId, payloadJSON,
+                responseSpec);
+        assertNotNull(postLoansLoanIdChargesResponse);
+        final Long loanChargeId = postLoansLoanIdChargesResponse.getResourceId();
+        assertNotNull(loanChargeId);
+
+        getLoansLoanIdResponse = loanTransactionHelper.getLoan(requestSpec, responseSpec, loanId);
+        validateLoanAccount(getLoansLoanIdResponse, Double.valueOf(principalAmount), Double.valueOf("10.00"), true);
+
+        // Waive the Loan Charge
+        final PostLoansLoanIdChargesChargeIdResponse postWaiveLoanChargesResponse = loanTransactionHelper.applyLoanChargeCommand(loanId,
+                loanChargeId, "waive", Utils.emptyJson());
+        assertNotNull(postWaiveLoanChargesResponse);
+
+        // evaluate the outstanding
+        getLoansLoanIdResponse = loanTransactionHelper.getLoan(requestSpec, responseSpec, loanId);
+        validateLoanAccount(getLoansLoanIdResponse, Double.valueOf(principalAmount), Double.valueOf("10.00"), true);
+
+        // Make a full repayment to close the Loan
+        Float amount = Float.valueOf("1010.00");
+        PostLoansLoanIdTransactionsResponse loanIdTransactionsResponse = loanTransactionHelper.makeLoanRepayment(operationDate, amount,
+                loanId);
+        assertNotNull(loanIdTransactionsResponse);
+        log.info("Loan Transaction Id: {} {}", loanId, loanIdTransactionsResponse.getResourceId());
+
+        getLoansLoanIdResponse = loanTransactionHelper.getLoan(requestSpec, responseSpec, loanId);
+        assertNotNull(getLoansLoanIdResponse);
+        loanTransactionHelper.validateLoanStatus(getLoansLoanIdResponse, "loanStatusType.closed.obligations.met");
+
+    }
+
     private GetLoanProductsProductIdResponse createLoanProduct(final LoanTransactionHelper loanTransactionHelper,
             final Integer delinquencyBucketId) {
         final HashMap<String, Object> loanProductMap = new LoanProductTestBuilder().build(null, delinquencyBucketId);
diff --git a/integration-tests/src/test/java/org/apache/fineract/integrationtests/common/loans/LoanTransactionHelper.java b/integration-tests/src/test/java/org/apache/fineract/integrationtests/common/loans/LoanTransactionHelper.java
index 148cf2f7a..bd22b2307 100644
--- a/integration-tests/src/test/java/org/apache/fineract/integrationtests/common/loans/LoanTransactionHelper.java
+++ b/integration-tests/src/test/java/org/apache/fineract/integrationtests/common/loans/LoanTransactionHelper.java
@@ -814,6 +814,15 @@ public class LoanTransactionHelper extends IntegrationTest {
         return (Integer) response.get("resourceId");
     }
 
+    public PostLoansLoanIdChargesChargeIdResponse applyLoanChargeCommand(final Integer loanId, final Long loanchargeId, final String commad,
+            final String json) {
+        log.info("--------------------------------- WAIVE CHARGES FOR LOAN --------------------------------");
+        final String CHARGES_URL = "/fineract-provider/api/v1/loans/" + loanId + "/charges/" + loanchargeId + "?command=" + commad + "&"
+                + Utils.TENANT_IDENTIFIER;
+        final String response = Utils.performServerPost(requestSpec, responseSpec, CHARGES_URL, json, null);
+        return GSON.fromJson(response, PostLoansLoanIdChargesChargeIdResponse.class);
+    }
+
     public Integer waiveChargesForLoan(final Integer loanId, final Integer loanchargeId, final String json) {
         log.info("--------------------------------- WAIVE CHARGES FOR LOAN --------------------------------");
         final String CHARGES_URL = "/fineract-provider/api/v1/loans/" + loanId + "/charges/" + loanchargeId + "?command=waive&"