diff --git a/mifosng-provider/src/main/java/org/mifosplatform/infrastructure/core/data/DataValidatorBuilder.java b/mifosng-provider/src/main/java/org/mifosplatform/infrastructure/core/data/DataValidatorBuilder.java
index 02c9f8d00..f829c6746 100644
--- a/mifosng-provider/src/main/java/org/mifosplatform/infrastructure/core/data/DataValidatorBuilder.java
+++ b/mifosng-provider/src/main/java/org/mifosplatform/infrastructure/core/data/DataValidatorBuilder.java
@@ -20,6 +20,7 @@ import com.google.gson.JsonArray;
 
 public class DataValidatorBuilder {
 
+    public static final String VALID_INPUT_SEPERATOR = "_";
     private final List<ApiParameterError> dataValidationErrors;
     private String resource;
     private String parameter;
@@ -593,4 +594,30 @@ public class DataValidatorBuilder {
     	
     	return this;
     }
+    
+    private DataValidatorBuilder validateStringFor(final String validInputs) {
+        if (this.value == null && this.ignoreNullValue) { return this; }
+        final String[] inputs = validInputs.split(VALID_INPUT_SEPERATOR);
+        boolean validationErr = true;
+        for (final String input : inputs) {
+            if (input.equalsIgnoreCase(this.value.toString().trim())) {
+                validationErr = false;
+                break;
+            }
+        }
+        if (validationErr) {
+            final StringBuilder validationErrorCode = new StringBuilder("validation.msg.").append(this.resource).append(".")
+                    .append(this.parameter).append(".value.should.true.or.false");
+            final StringBuilder defaultEnglishMessage = new StringBuilder("The parameter ").append(this.parameter)
+                    .append(" value should true or false ");
+            final ApiParameterError error = ApiParameterError.parameterError(validationErrorCode.toString(),
+                    defaultEnglishMessage.toString(), this.parameter, this.value);
+            this.dataValidationErrors.add(error);
+        }
+        return this;
+    }
+    
+    public DataValidatorBuilder validateForBooleanValue() {
+        return validateStringFor("TRUE" + VALID_INPUT_SEPERATOR + "FALSE");
+    }
 }
\ No newline at end of file
diff --git a/mifosng-provider/src/main/java/org/mifosplatform/portfolio/loanproduct/serialization/LoanProductDataValidator.java b/mifosng-provider/src/main/java/org/mifosplatform/portfolio/loanproduct/serialization/LoanProductDataValidator.java
index 0107e7a14..7597aa94a 100644
--- a/mifosng-provider/src/main/java/org/mifosplatform/portfolio/loanproduct/serialization/LoanProductDataValidator.java
+++ b/mifosng-provider/src/main/java/org/mifosplatform/portfolio/loanproduct/serialization/LoanProductDataValidator.java
@@ -83,7 +83,7 @@ public final class LoanProductDataValidator {
         }
         
         final Boolean includeInBorrowerCycle = fromApiJsonHelper.extractBooleanNamed("includeInBorrowerCycle", element);
-        baseDataValidator.reset().parameter("includeInBorrowerCycle").value(includeInBorrowerCycle).notNull();
+        baseDataValidator.reset().parameter("includeInBorrowerCycle").value(includeInBorrowerCycle).ignoreIfNull().validateForBooleanValue();
 
         // terms
         final String currencyCode = fromApiJsonHelper.extractStringNamed("currencyCode", element);
@@ -319,6 +319,11 @@ public final class LoanProductDataValidator {
             final Long fundId = fromApiJsonHelper.extractLongNamed("fundId", element);
             baseDataValidator.reset().parameter("fundId").value(fundId).ignoreIfNull().integerGreaterThanZero();
         }
+        
+        if (fromApiJsonHelper.parameterExists("includeInBorrowerCycle", element)) {
+            final Boolean includeInBorrowerCycle = fromApiJsonHelper.extractBooleanNamed("includeInBorrowerCycle", element);
+            baseDataValidator.reset().parameter("includeInBorrowerCycle").value(includeInBorrowerCycle).ignoreIfNull().validateForBooleanValue();
+        }
 
         if (fromApiJsonHelper.parameterExists("currencyCode", element)) {
             final String currencyCode = fromApiJsonHelper.extractStringNamed("currencyCode", element);