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 6c0ddd6bb..b4ce5cf55 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
@@ -475,7 +475,7 @@ public class Loan extends AbstractPersistable<Long> {
 
             // if loan charge is to be applied on a future date, the loan
             // transaction would show todays date as applied date
-            if (currentDate.isBefore(transactionDate)) {
+            if (transactionDate == null || currentDate.isBefore(transactionDate)) {
                 transactionDate = currentDate;
             }
         }