diff --git a/mifosng-provider/src/main/java/org/mifosplatform/portfolio/loanaccount/domain/Loan.java b/mifosng-provider/src/main/java/org/mifosplatform/portfolio/loanaccount/domain/Loan.java
index 651a493be..0de599d0f 100644
--- a/mifosng-provider/src/main/java/org/mifosplatform/portfolio/loanaccount/domain/Loan.java
+++ b/mifosng-provider/src/main/java/org/mifosplatform/portfolio/loanaccount/domain/Loan.java
@@ -319,13 +319,12 @@ public class Loan extends AbstractPersistable<Long> {
     }
 
     public static Loan newGroupLoanApplication(final String accountNo, final Group group, final Integer loanType,
-            final LoanProduct loanProduct, final Fund fund, final Staff officer,
+            final LoanProduct loanProduct, final Fund fund, final Staff officer, final CodeValue loanPurpose,
             final LoanTransactionProcessingStrategy transactionProcessingStrategy,
             final LoanProductRelatedDetail loanRepaymentScheduleDetail, final Set<LoanCharge> loanCharges,
             final Boolean syncDisbursementWithMeeting, final BigDecimal fixedEmiAmount,
             final Set<LoanDisbursementDetails> disbursementDetails, final BigDecimal maxOutstandingLoanBalance) {
         final LoanStatus status = null;
-        final CodeValue loanPurpose = null;
         final Set<LoanCollateral> collateral = null;
         final Client client = null;
         return new Loan(accountNo, client, group, loanType, fund, officer, loanPurpose, transactionProcessingStrategy, loanProduct,
@@ -334,13 +333,12 @@ public class Loan extends AbstractPersistable<Long> {
     }
 
     public static Loan newIndividualLoanApplicationFromGroup(final String accountNo, final Client client, final Group group,
-            final Integer loanType, final LoanProduct loanProduct, final Fund fund, final Staff officer,
+            final Integer loanType, final LoanProduct loanProduct, final Fund fund, final Staff officer, final CodeValue loanPurpose,
             final LoanTransactionProcessingStrategy transactionProcessingStrategy,
             final LoanProductRelatedDetail loanRepaymentScheduleDetail, final Set<LoanCharge> loanCharges,
             final Boolean syncDisbursementWithMeeting, final BigDecimal fixedEmiAmount,
             final Set<LoanDisbursementDetails> disbursementDetails, final BigDecimal maxOutstandingLoanBalance) {
         final LoanStatus status = null;
-        final CodeValue loanPurpose = null;
         final Set<LoanCollateral> collateral = null;
         return new Loan(accountNo, client, group, loanType, fund, officer, loanPurpose, transactionProcessingStrategy, loanProduct,
                 loanRepaymentScheduleDetail, status, loanCharges, collateral, syncDisbursementWithMeeting, fixedEmiAmount,
diff --git a/mifosng-provider/src/main/java/org/mifosplatform/portfolio/loanaccount/service/LoanAssembler.java b/mifosng-provider/src/main/java/org/mifosplatform/portfolio/loanaccount/service/LoanAssembler.java
index 8af15483a..e2aa75d14 100644
--- a/mifosng-provider/src/main/java/org/mifosplatform/portfolio/loanaccount/service/LoanAssembler.java
+++ b/mifosng-provider/src/main/java/org/mifosplatform/portfolio/loanaccount/service/LoanAssembler.java
@@ -212,20 +212,12 @@ public class LoanAssembler {
         if (clientId != null) {
             client = this.clientRepository.findOneWithNotFoundDetection(clientId);
             if (client.isNotActive()) { throw new ClientNotActiveException(clientId); }
-
-            loanApplication = Loan.newIndividualLoanApplication(accountNo, client, loanType.getId().intValue(), loanProduct, fund,
-                    loanOfficer, loanPurpose, loanTransactionProcessingStrategy, loanProductRelatedDetail, loanCharges, collateral, 
-                    fixedEmiAmount, disbursementDetails,maxOutstandingLoanBalance);
         }
 
         if (groupId != null) {
             group = this.groupRepository.findOne(groupId);
             if (group == null) { throw new GroupNotFoundException(groupId); }
             if (group.isNotActive()) { throw new GroupNotActiveException(groupId); }
-
-            loanApplication = Loan.newGroupLoanApplication(accountNo, group, loanType.getId().intValue(), loanProduct, fund, loanOfficer,
-                    loanTransactionProcessingStrategy, loanProductRelatedDetail, loanCharges, syncDisbursementWithMeeting, fixedEmiAmount, 
-                    disbursementDetails, maxOutstandingLoanBalance);
         }
 
         if (client != null && group != null) {
@@ -233,10 +225,23 @@ public class LoanAssembler {
             if (!group.hasClientAsMember(client)) { throw new ClientNotInGroupException(clientId, groupId); }
 
             loanApplication = Loan.newIndividualLoanApplicationFromGroup(accountNo, client, group, loanType.getId().intValue(),
-                    loanProduct, fund, loanOfficer, loanTransactionProcessingStrategy, loanProductRelatedDetail, loanCharges,
-                    syncDisbursementWithMeeting, fixedEmiAmount, disbursementDetails,maxOutstandingLoanBalance);
+                    loanProduct, fund, loanOfficer, loanPurpose, loanTransactionProcessingStrategy, loanProductRelatedDetail, loanCharges,
+                    syncDisbursementWithMeeting, fixedEmiAmount, disbursementDetails, maxOutstandingLoanBalance);
+
+        } else if (group != null) {
+
+            loanApplication = Loan.newGroupLoanApplication(accountNo, group, loanType.getId().intValue(), loanProduct, fund, loanOfficer,
+                    loanPurpose, loanTransactionProcessingStrategy, loanProductRelatedDetail, loanCharges, syncDisbursementWithMeeting,
+                    fixedEmiAmount, disbursementDetails, maxOutstandingLoanBalance);
+
+        } else if (client != null) {
+
+            loanApplication = Loan.newIndividualLoanApplication(accountNo, client, loanType.getId().intValue(), loanProduct, fund,
+                    loanOfficer, loanPurpose, loanTransactionProcessingStrategy, loanProductRelatedDetail, loanCharges, collateral,
+                    fixedEmiAmount, disbursementDetails, maxOutstandingLoanBalance);
+
         }
-        
+
         final String externalId = this.fromApiJsonHelper.extractStringNamed("externalId", element);
         final LocalDate submittedOnDate = this.fromApiJsonHelper.extractLocalDateNamed("submittedOnDate", element);