diff --git a/fineract-provider/src/main/java/org/apache/fineract/portfolio/loanaccount/domain/Loan.java b/fineract-provider/src/main/java/org/apache/fineract/portfolio/loanaccount/domain/Loan.java
index 3b35c5394..8b1cc2a41 100755
--- a/fineract-provider/src/main/java/org/apache/fineract/portfolio/loanaccount/domain/Loan.java
+++ b/fineract-provider/src/main/java/org/apache/fineract/portfolio/loanaccount/domain/Loan.java
@@ -862,7 +862,11 @@ public class Loan extends AbstractPersistableCustom<Long> {
             break;
             case PERCENT_OF_AMOUNT_AND_INTEREST:
                 final BigDecimal totalInterestCharged = getTotalInterest();
-                amount = getPrincpal().getAmount().add(totalInterestCharged);
+                if (isMultiDisburmentLoan() && loanCharge.isDisbursementCharge()) {
+                    amount = getTotalAllTrancheDisbursementAmount().getAmount().add(totalInterestCharged);
+                }else{
+                    amount = getPrincpal().getAmount().add(totalInterestCharged);
+                }
             break;
             case PERCENT_OF_INTEREST:
                 amount = getTotalInterest();
@@ -880,6 +884,31 @@ public class Loan extends AbstractPersistableCustom<Long> {
         return amount;
     }
 
+    private Money getTotalAllTrancheDisbursementAmount() {
+        Money amount = Money.zero(getCurrency());
+        if (isMultiDisburmentLoan()) {
+            for (final LoanDisbursementDetails loanDisbursementDetail : this.disbursementDetails) {
+                amount = amount.plus(loanDisbursementDetail.principal());
+            }
+        }
+        return amount;
+    }
+
+    private boolean isFirstTrancheDisbursement() {
+        if (isMultiDisburmentLoan()) {
+            int totalTranchDisbursementCount = 0;
+            for (final LoanDisbursementDetails loanDisbursementDetail : this.disbursementDetails) {
+                if(loanDisbursementDetail.actualDisbursementDate() != null){
+                    totalTranchDisbursementCount++;
+                }
+            }
+            if(totalTranchDisbursementCount < 2){
+                return true;
+            }
+        }
+        return false;
+    }
+
     /**
      * @return
      */
diff --git a/fineract-provider/src/main/java/org/apache/fineract/portfolio/loanaccount/domain/LoanCharge.java b/fineract-provider/src/main/java/org/apache/fineract/portfolio/loanaccount/domain/LoanCharge.java
index 88a8aee49..5a8582f4b 100755
--- a/fineract-provider/src/main/java/org/apache/fineract/portfolio/loanaccount/domain/LoanCharge.java
+++ b/fineract-provider/src/main/java/org/apache/fineract/portfolio/loanaccount/domain/LoanCharge.java
@@ -990,6 +990,10 @@ public class LoanCharge extends AbstractPersistableCustom<Long> {
         return this.loan;
     }
     
+    public boolean isDisbursementCharge() {
+        return ChargeTimeType.fromInt(this.chargeTime).equals(ChargeTimeType.DISBURSEMENT);
+    }
+    
     public boolean isTrancheDisbursementCharge() {
         return ChargeTimeType.fromInt(this.chargeTime).equals(ChargeTimeType.TRANCHE_DISBURSEMENT);
     }