FINERACT-2174: Calculate fraction period - In case interestRecognitionFromDisbursementDate is true, we need to include from date and exclude due date

fineract-loan/src/main/java/org/apache/fineract/portfolio/loanaccount/loanschedule/domain/LoanApplicationTerms.java

@@ -254,6 +254,8 @@ public final class LoanApplicationTerms {
         this.seedDate = builder.seedDate;
         this.isDownPaymentEnabled = builder.isDownPaymentEnabled;
         this.disbursedAmountPercentageForDownPayment = builder.downPaymentPercentage;
+        this.interestRecognitionOnDisbursementDate = builder.interestRecognitionOnDisbursementDate != null
+                && builder.interestRecognitionOnDisbursementDate;
         if (isDownPaymentEnabled) {
             this.downPaymentAmount = Money.of(getCurrency(),
                     MathUtil.percentageOf(getPrincipal().getAmount(), getDisbursedAmountPercentageForDownPayment(), builder.mc),
@@ -291,6 +293,7 @@ public final class LoanApplicationTerms {
         private LocalDate submittedOnDate;
         private LocalDate seedDate;
         private MathContext mc;
+        private Boolean interestRecognitionOnDisbursementDate;
 
         public Builder currency(CurrencyData currency) {
             this.currency = currency;
@@ -402,6 +405,11 @@ public final class LoanApplicationTerms {
             return this;
         }
 
+        public Builder interestRecognitionOnDisbursementDate(boolean value) {
+            this.interestRecognitionOnDisbursementDate = value;
+            return this;
+        }
+
         public LoanApplicationTerms build() {
             return new LoanApplicationTerms(this);
         }
@@ -430,7 +438,8 @@ public final class LoanApplicationTerms {
                 .daysInMonthType(modelData.daysInMonth()).daysInYearType(modelData.daysInYear()).fixedLength(modelData.fixedLength())
                 .inArrearsTolerance(Money.zero(modelData.currency(), mc)).disbursementDatas(new ArrayList<>())
                 .isDownPaymentEnabled(modelData.downPaymentEnabled()).downPaymentPercentage(downPaymentPercentage)
-                .submittedOnDate(modelData.scheduleGenerationStartDate()).seedDate(seedDate).mc(mc).build();
+                .submittedOnDate(modelData.scheduleGenerationStartDate()).seedDate(seedDate)
+                .interestRecognitionOnDisbursementDate(modelData.interestRecognitionOnDisbursementDate()).mc(mc).build();
     }
 
     public static LoanApplicationTerms assembleFrom(final CurrencyData currency, final Integer loanTermFrequency,
@@ -1557,7 +1566,8 @@ public final class LoanApplicationTerms {
         return new LoanProductRelatedDetailMinimumData(currency, interestRatePerPeriod, annualNominalInterestRate, interestChargingGrace,
                 interestPaymentGrace, principalGrace, recurringMoratoriumOnPrincipalPeriods, interestMethod,
                 interestCalculationPeriodMethod, daysInYearType, daysInMonthType, amortizationMethod, repaymentPeriodFrequencyType,
-                repaymentEvery, numberOfRepayments);
+                repaymentEvery, numberOfRepayments,
+                isInterestChargedFromDateSameAsDisbursalDateEnabled != null && isInterestChargedFromDateSameAsDisbursalDateEnabled);
     }
 
     public Integer getLoanTermFrequency() {

fineract-loan/src/main/java/org/apache/fineract/portfolio/loanaccount/loanschedule/domain/LoanRepaymentScheduleModelData.java

@@ -30,5 +30,16 @@ public record LoanRepaymentScheduleModelData(@NotNull LocalDate scheduleGenerati
         @NotNull BigDecimal disbursementAmount, @NotNull LocalDate disbursementDate, @NotNull int numberOfRepayments,
         @NotNull int repaymentFrequency, @NotBlank String repaymentFrequencyType, @NotNull BigDecimal annualNominalInterestRate,
         @NotNull boolean downPaymentEnabled, @NotNull DaysInMonthType daysInMonth, @NotNull DaysInYearType daysInYear,
-        BigDecimal downPaymentPercentage, Integer installmentAmountInMultiplesOf, Integer fixedLength) {
+        BigDecimal downPaymentPercentage, Integer installmentAmountInMultiplesOf, Integer fixedLength,
+        @NotNull Boolean interestRecognitionOnDisbursementDate) {
+
+    LoanRepaymentScheduleModelData(@NotNull LocalDate scheduleGenerationStartDate, @NotNull CurrencyData currency,
+            @NotNull BigDecimal disbursementAmount, @NotNull LocalDate disbursementDate, @NotNull int numberOfRepayments,
+            @NotNull int repaymentFrequency, @NotBlank String repaymentFrequencyType, @NotNull BigDecimal annualNominalInterestRate,
+            @NotNull boolean downPaymentEnabled, @NotNull DaysInMonthType daysInMonth, @NotNull DaysInYearType daysInYear,
+            BigDecimal downPaymentPercentage, Integer installmentAmountInMultiplesOf, Integer fixedLength) {
+        this(scheduleGenerationStartDate, currency, disbursementAmount, disbursementDate, numberOfRepayments, repaymentFrequency,
+                repaymentFrequencyType, annualNominalInterestRate, downPaymentEnabled, daysInMonth, daysInYear, downPaymentPercentage,
+                installmentAmountInMultiplesOf, fixedLength, false);
+    }
 }

fineract-loan/src/main/java/org/apache/fineract/portfolio/loanproduct/data/LoanProductRelatedDetailMinimumData.java

@@ -45,13 +45,14 @@ public class LoanProductRelatedDetailMinimumData implements LoanProductMinimumRe
     private final PeriodFrequencyType repaymentPeriodFrequencyType;
     private final Integer repaymentEvery;
     private final Integer numberOfRepayments;
+    private final boolean interestRecognitionOnDisbursementDate;
 
     public LoanProductRelatedDetailMinimumData(CurrencyData currency, BigDecimal interestRatePerPeriod,
             BigDecimal annualNominalInterestRate, Integer interestChargingGrace, Integer interestPaymentGrace, Integer principalGrace,
             Integer recurringMoratoriumOnPrincipalPeriods, InterestMethod interestMethod,
             InterestCalculationPeriodMethod interestCalculationPeriodMethod, DaysInYearType daysInYearType, DaysInMonthType daysInMonthType,
             AmortizationMethod amortizationMethod, PeriodFrequencyType repaymentPeriodFrequencyType, Integer repaymentEvery,
-            Integer numberOfRepayments) {
+            Integer numberOfRepayments, boolean interestRecognitionOnDisbursementDate) {
         this.currency = currency;
         this.interestRatePerPeriod = interestRatePerPeriod;
         this.annualNominalInterestRate = annualNominalInterestRate;
@@ -67,6 +68,7 @@ public class LoanProductRelatedDetailMinimumData implements LoanProductMinimumRe
         this.repaymentPeriodFrequencyType = repaymentPeriodFrequencyType;
         this.repaymentEvery = repaymentEvery;
         this.numberOfRepayments = numberOfRepayments;
+        this.interestRecognitionOnDisbursementDate = interestRecognitionOnDisbursementDate;
     }
 
     private Integer defaultToNullIfZero(final Integer value) {
@@ -161,4 +163,9 @@ public class LoanProductRelatedDetailMinimumData implements LoanProductMinimumRe
     public Integer getDaysInYearType() {
         return daysInYearType.getValue();
     }
+
+    @Override
+    public boolean isInterestRecognitionOnDisbursementDate() {
+        return interestRecognitionOnDisbursementDate;
+    }
 }

fineract-loan/src/main/java/org/apache/fineract/portfolio/loanproduct/domain/LoanProductMinimumRepaymentScheduleRelatedDetail.java

@@ -60,4 +60,6 @@ public interface LoanProductMinimumRepaymentScheduleRelatedDetail {
     Integer getDaysInMonthType();
 
     Integer getDaysInYearType();
+
+    boolean isInterestRecognitionOnDisbursementDate();
 }

fineract-progressive-loan-embeddable-schedule-generator/misc/Main.java

@@ -55,8 +55,9 @@ public class Main {
         final DaysInYearType daysInYearType = DaysInYearType.DAYS_360;
         final Integer installmentAmountInMultiplesOf = null;
         final Integer fixedLength = null;
+        final Boolean interestRecognitionOnDisbursementDate = false;
 
-        var config = new LoanRepaymentScheduleModelData(startDate, currency, disbursedAmount, disbursementDate, noRepayments, repaymentFrequency, repaymentFrequencyType, annualNominalInterestRate, isDownPaymentEnabled, daysInMonthType, daysInYearType, downPaymentPercentage, installmentAmountInMultiplesOf, fixedLength);
+        var config = new LoanRepaymentScheduleModelData(startDate, currency, disbursedAmount, disbursementDate, noRepayments, repaymentFrequency, repaymentFrequencyType, annualNominalInterestRate, isDownPaymentEnabled, daysInMonthType, daysInYearType, downPaymentPercentage, installmentAmountInMultiplesOf, fixedLength, interestRecognitionOnDisbursementDate);
 
         final LoanSchedulePlan plan = calculator.generate(mc, config);
         printPlan(plan);

fineract-progressive-loan-embeddable-schedule-generator/src/test/java/org/apache/fineract/portfolio/loanaccount/loanschedule/domain/EmbeddableProgressiveLoanScheduleGeneratorTest.java

@@ -54,10 +54,11 @@ class EmbeddableProgressiveLoanScheduleGeneratorTest {
         final DaysInYearType daysInYearType = DaysInYearType.DAYS_360;
         final Integer installmentAmountInMultiplesOf = null;
         final Integer fixedLength = null;
+        final Boolean interestRecognitionOnDisbursementDate = false;
 
         var config = new LoanRepaymentScheduleModelData(startDate, currency, disbursedAmount, disbursementDate, noRepayments,
                 repaymentFrequency, repaymentFrequencyType, annualNominalInterestRate, isDownPaymentEnabled, daysInMonthType,
-                daysInYearType, downPaymentPercentage, installmentAmountInMultiplesOf, fixedLength);
+                daysInYearType, downPaymentPercentage, installmentAmountInMultiplesOf, fixedLength, interestRecognitionOnDisbursementDate);
 
         final LoanSchedulePlan plan = calculator.generate(mc, config);
 

fineract-progressive-loan/src/main/java/org/apache/fineract/portfolio/loanproduct/calc/ProgressiveEMICalculator.java

@@ -511,7 +511,8 @@ public final class ProgressiveEMICalculator implements EMICalculator {
         // TODO review: (repayment frequency: days, weeks, years; validation day is month fix 30)
         // TODO refactor this logic to represent in interest period
         if (partialPeriodCalculationNeeded) {
-            final BigDecimal cumulatedPeriodFractions = calculatePeriodFractions(interestPeriodFromDate, interestPeriodDueDate, mc);
+            final BigDecimal cumulatedPeriodFractions = calculatePeriodFractions(scheduleModel, interestPeriodFromDate,
+                    interestPeriodDueDate, mc);
             return rateFactorByRepaymentPartialPeriod(interestRate, BigDecimal.ONE, cumulatedPeriodFractions, BigDecimal.ONE,
                     BigDecimal.ONE, mc);
         }
@@ -623,7 +624,8 @@ public final class ProgressiveEMICalculator implements EMICalculator {
         // TODO review: (repayment frequency: days, weeks, years; validation day is month fix 30)
         // TODO refactor this logic to represent in interest period
         if (partialPeriodCalculationNeeded) {
-            final BigDecimal cumulatedPeriodFractions = calculatePeriodFractions(interestPeriodFromDate, interestPeriodDueDate, mc);
+            final BigDecimal cumulatedPeriodFractions = calculatePeriodFractions(scheduleModel, interestPeriodFromDate,
+                    interestPeriodDueDate, mc);
             return rateFactorByRepaymentPartialPeriod(interestRate, BigDecimal.ONE, cumulatedPeriodFractions, BigDecimal.ONE,
                     BigDecimal.ONE, mc);
         }
@@ -640,29 +642,47 @@ public final class ProgressiveEMICalculator implements EMICalculator {
     /**
      * Calculate Period fractions part based on how much year has in the period
      *
+     * @param scheduleModel
      * @param interestPeriodFromDate
      * @param interestPeriodDueDate
      * @return
      */
-    private BigDecimal calculatePeriodFractions(final LocalDate interestPeriodFromDate, final LocalDate interestPeriodDueDate,
-            MathContext mc) {
+    public BigDecimal calculatePeriodFractions(ProgressiveLoanInterestScheduleModel scheduleModel, final LocalDate interestPeriodFromDate,
+            final LocalDate interestPeriodDueDate, MathContext mc) {
         BigDecimal cumulatedRateFactor = BigDecimal.ZERO;
         int actualYear = interestPeriodFromDate.getYear();
         int endYear = interestPeriodDueDate.getYear();
         LocalDate actualDate = interestPeriodFromDate;
-        LocalDate endOfActualYear;
+        LocalDate fractionPeriodDueDate;
 
         while (actualYear <= endYear) {
-            endOfActualYear = actualYear == endYear ? interestPeriodDueDate : LocalDate.of(actualYear, 12, 31);
+            fractionPeriodDueDate = actualYear == endYear ? interestPeriodDueDate
+                    : getFractionPeriodDueDateForEndOfYear(scheduleModel, actualYear);
             BigDecimal numberOfDaysInYear = BigDecimal.valueOf(Year.of(actualYear).length());
-            BigDecimal calculatedDaysInActualYear = BigDecimal.valueOf(DateUtils.getDifferenceInDays(actualDate, endOfActualYear));
+            BigDecimal calculatedDaysInActualYear = BigDecimal.valueOf(DateUtils.getDifferenceInDays(actualDate, fractionPeriodDueDate));
             cumulatedRateFactor = cumulatedRateFactor.add(calculatedDaysInActualYear.divide(numberOfDaysInYear, mc), mc);
-            actualDate = endOfActualYear;
+            actualDate = fractionPeriodDueDate;
             actualYear++;
         }
         return cumulatedRateFactor;
     }
 
+    /**
+     * Determines the last date of the year for interest calculation depending on the
+     * isInterestRecognitionOnDisbursementDate flag.
+     *
+     * @param scheduleModel
+     * @param year
+     * @return
+     */
+    private LocalDate getFractionPeriodDueDateForEndOfYear(ProgressiveLoanInterestScheduleModel scheduleModel, int year) {
+        if (scheduleModel.loanProductRelatedDetail().isInterestRecognitionOnDisbursementDate()) {
+            return LocalDate.of(year + 1, 1, 1);
+        } else {
+            return LocalDate.of(year, 12, 31);
+        }
+    }
+
     /**
      * Calculate Rate Factor based on Repayment Frequency Type
      *

fineract-progressive-loan/src/test/java/org/apache/fineract/portfolio/loanaccount/loanschedule/domain/LoanScheduleGeneratorTest.java

@@ -54,7 +54,7 @@ class LoanScheduleGeneratorTest {
     void testGenerateLoanSchedule() {
         LoanRepaymentScheduleModelData modelData = new LoanRepaymentScheduleModelData(LocalDate.of(2024, 1, 1), CURRENCY,
                 DISBURSEMENT_AMOUNT, DISBURSEMENT_DATE, NUMBER_OF_REPAYMENTS, REPAYMENT_FREQUENCY, REPAYMENT_FREQUENCY_TYPE,
-                NOMINAL_INTEREST_RATE, false, DaysInMonthType.DAYS_30, DaysInYearType.DAYS_360, null, null, null);
+                NOMINAL_INTEREST_RATE, false, DaysInMonthType.DAYS_30, DaysInYearType.DAYS_360, null, null, null, false);
 
         ScheduledDateGenerator scheduledDateGenerator = new DefaultScheduledDateGenerator();
         ProgressiveLoanScheduleGenerator generator = new ProgressiveLoanScheduleGenerator(scheduledDateGenerator, emiCalculator);
@@ -89,7 +89,7 @@ class LoanScheduleGeneratorTest {
     void testGenerateLoanScheduleWithDownPayment() {
         LoanRepaymentScheduleModelData modelData = new LoanRepaymentScheduleModelData(LocalDate.of(2024, 1, 1), CURRENCY,
                 DISBURSEMENT_AMOUNT_100, LocalDate.of(2024, 1, 1), NUMBER_OF_REPAYMENTS, REPAYMENT_FREQUENCY, REPAYMENT_FREQUENCY_TYPE,
-                NOMINAL_INTEREST_RATE, true, DaysInMonthType.DAYS_30, DaysInYearType.DAYS_360, DOWN_PAYMENT_PORTION, null, null);
+                NOMINAL_INTEREST_RATE, true, DaysInMonthType.DAYS_30, DaysInYearType.DAYS_360, DOWN_PAYMENT_PORTION, null, null, false);
 
         ScheduledDateGenerator scheduledDateGenerator = new DefaultScheduledDateGenerator();
         ProgressiveLoanScheduleGenerator generator = new ProgressiveLoanScheduleGenerator(scheduledDateGenerator, emiCalculator);

fineract-progressive-loan/src/test/java/org/apache/fineract/portfolio/loanproduct/calc/ProgressiveEMICalculatorTest.java

@@ -208,6 +208,7 @@ class ProgressiveEMICalculatorTest {
         Mockito.when(loanProductRelatedDetail.getRepaymentPeriodFrequencyType()).thenReturn(PeriodFrequencyType.MONTHS);
         Mockito.when(loanProductRelatedDetail.getRepayEvery()).thenReturn(1);
         Mockito.when(loanProductRelatedDetail.getCurrencyData()).thenReturn(currency);
+        Mockito.when(loanProductRelatedDetail.isInterestRecognitionOnDisbursementDate()).thenReturn(false);
 
         final ProgressiveLoanInterestScheduleModel interestSchedule = emiCalculator.generatePeriodInterestScheduleModel(
                 expectedRepaymentPeriods, loanProductRelatedDetail, List.of(), installmentAmountInMultiplesOf, mc);
@@ -252,6 +253,7 @@ class ProgressiveEMICalculatorTest {
         Mockito.when(loanProductRelatedDetail.getRepaymentPeriodFrequencyType()).thenReturn(PeriodFrequencyType.MONTHS);
         Mockito.when(loanProductRelatedDetail.getRepayEvery()).thenReturn(1);
         Mockito.when(loanProductRelatedDetail.getCurrencyData()).thenReturn(currency);
+        Mockito.when(loanProductRelatedDetail.isInterestRecognitionOnDisbursementDate()).thenReturn(false);
 
         final ProgressiveLoanInterestScheduleModel interestSchedule = emiCalculator.generatePeriodInterestScheduleModel(
                 expectedRepaymentPeriods, loanProductRelatedDetail, List.of(), installmentAmountInMultiplesOf, mc);
@@ -288,6 +290,7 @@ class ProgressiveEMICalculatorTest {
         Mockito.when(loanProductRelatedDetail.getRepaymentPeriodFrequencyType()).thenReturn(PeriodFrequencyType.MONTHS);
         Mockito.when(loanProductRelatedDetail.getRepayEvery()).thenReturn(1);
         Mockito.when(loanProductRelatedDetail.getCurrencyData()).thenReturn(currency);
+        Mockito.when(loanProductRelatedDetail.isInterestRecognitionOnDisbursementDate()).thenReturn(false);
 
         final ProgressiveLoanInterestScheduleModel interestSchedule = emiCalculator.generatePeriodInterestScheduleModel(
                 expectedRepaymentPeriods, loanProductRelatedDetail, List.of(), installmentAmountInMultiplesOf, mc);
@@ -324,6 +327,7 @@ class ProgressiveEMICalculatorTest {
         Mockito.when(loanProductRelatedDetail.getRepaymentPeriodFrequencyType()).thenReturn(PeriodFrequencyType.MONTHS);
         Mockito.when(loanProductRelatedDetail.getRepayEvery()).thenReturn(1);
         Mockito.when(loanProductRelatedDetail.getCurrencyData()).thenReturn(currency);
+        Mockito.when(loanProductRelatedDetail.isInterestRecognitionOnDisbursementDate()).thenReturn(false);
 
         final ProgressiveLoanInterestScheduleModel interestSchedule = emiCalculator.generatePeriodInterestScheduleModel(
                 expectedRepaymentPeriods, loanProductRelatedDetail, List.of(), installmentAmountInMultiplesOf, mc);
@@ -370,6 +374,7 @@ class ProgressiveEMICalculatorTest {
         Mockito.when(loanProductRelatedDetail.getRepaymentPeriodFrequencyType()).thenReturn(PeriodFrequencyType.MONTHS);
         Mockito.when(loanProductRelatedDetail.getRepayEvery()).thenReturn(1);
         Mockito.when(loanProductRelatedDetail.getCurrencyData()).thenReturn(currency);
+        Mockito.when(loanProductRelatedDetail.isInterestRecognitionOnDisbursementDate()).thenReturn(false);
 
         threadLocalContextUtil.when(ThreadLocalContextUtil::getBusinessDate).thenReturn(LocalDate.of(2024, 2, 14));
 
@@ -412,6 +417,7 @@ class ProgressiveEMICalculatorTest {
         Mockito.when(loanProductRelatedDetail.getRepaymentPeriodFrequencyType()).thenReturn(PeriodFrequencyType.MONTHS);
         Mockito.when(loanProductRelatedDetail.getRepayEvery()).thenReturn(1);
         Mockito.when(loanProductRelatedDetail.getCurrencyData()).thenReturn(currency);
+        Mockito.when(loanProductRelatedDetail.isInterestRecognitionOnDisbursementDate()).thenReturn(false);
 
         threadLocalContextUtil.when(ThreadLocalContextUtil::getBusinessDate).thenReturn(LocalDate.of(2024, 2, 14));
 
@@ -459,6 +465,7 @@ class ProgressiveEMICalculatorTest {
         Mockito.when(loanProductRelatedDetail.getRepaymentPeriodFrequencyType()).thenReturn(PeriodFrequencyType.MONTHS);
         Mockito.when(loanProductRelatedDetail.getRepayEvery()).thenReturn(1);
         Mockito.when(loanProductRelatedDetail.getCurrencyData()).thenReturn(currency);
+        Mockito.when(loanProductRelatedDetail.isInterestRecognitionOnDisbursementDate()).thenReturn(false);
 
         threadLocalContextUtil.when(ThreadLocalContextUtil::getBusinessDate).thenReturn(LocalDate.of(2024, 2, 14));
 
@@ -505,6 +512,7 @@ class ProgressiveEMICalculatorTest {
         Mockito.when(loanProductRelatedDetail.getRepaymentPeriodFrequencyType()).thenReturn(PeriodFrequencyType.MONTHS);
         Mockito.when(loanProductRelatedDetail.getRepayEvery()).thenReturn(1);
         Mockito.when(loanProductRelatedDetail.getCurrencyData()).thenReturn(currency);
+        Mockito.when(loanProductRelatedDetail.isInterestRecognitionOnDisbursementDate()).thenReturn(false);
 
         threadLocalContextUtil.when(ThreadLocalContextUtil::getBusinessDate).thenReturn(LocalDate.of(2024, 2, 14));
 
@@ -551,6 +559,7 @@ class ProgressiveEMICalculatorTest {
         Mockito.when(loanProductRelatedDetail.getRepaymentPeriodFrequencyType()).thenReturn(PeriodFrequencyType.MONTHS);
         Mockito.when(loanProductRelatedDetail.getRepayEvery()).thenReturn(1);
         Mockito.when(loanProductRelatedDetail.getCurrencyData()).thenReturn(currency);
+        Mockito.when(loanProductRelatedDetail.isInterestRecognitionOnDisbursementDate()).thenReturn(false);
 
         threadLocalContextUtil.when(ThreadLocalContextUtil::getBusinessDate).thenReturn(LocalDate.of(2024, 2, 15));
 
@@ -658,6 +667,7 @@ class ProgressiveEMICalculatorTest {
         Mockito.when(loanProductRelatedDetail.getRepaymentPeriodFrequencyType()).thenReturn(PeriodFrequencyType.MONTHS);
         Mockito.when(loanProductRelatedDetail.getRepayEvery()).thenReturn(1);
         Mockito.when(loanProductRelatedDetail.getCurrencyData()).thenReturn(currency);
+        Mockito.when(loanProductRelatedDetail.isInterestRecognitionOnDisbursementDate()).thenReturn(false);
 
         threadLocalContextUtil.when(ThreadLocalContextUtil::getBusinessDate).thenReturn(LocalDate.of(2024, 2, 15));
 
@@ -729,6 +739,7 @@ class ProgressiveEMICalculatorTest {
         Mockito.when(loanProductRelatedDetail.getRepaymentPeriodFrequencyType()).thenReturn(PeriodFrequencyType.MONTHS);
         Mockito.when(loanProductRelatedDetail.getRepayEvery()).thenReturn(1);
         Mockito.when(loanProductRelatedDetail.getCurrencyData()).thenReturn(currency);
+        Mockito.when(loanProductRelatedDetail.isInterestRecognitionOnDisbursementDate()).thenReturn(false);
 
         threadLocalContextUtil.when(ThreadLocalContextUtil::getBusinessDate).thenReturn(LocalDate.of(2024, 2, 15));
 
@@ -808,6 +819,7 @@ class ProgressiveEMICalculatorTest {
         Mockito.when(loanProductRelatedDetail.getRepaymentPeriodFrequencyType()).thenReturn(PeriodFrequencyType.MONTHS);
         Mockito.when(loanProductRelatedDetail.getRepayEvery()).thenReturn(1);
         Mockito.when(loanProductRelatedDetail.getCurrencyData()).thenReturn(currency);
+        Mockito.when(loanProductRelatedDetail.isInterestRecognitionOnDisbursementDate()).thenReturn(false);
 
         final ProgressiveLoanInterestScheduleModel interestSchedule = emiCalculator.generatePeriodInterestScheduleModel(
                 expectedRepaymentPeriods, loanProductRelatedDetail, List.of(), installmentAmountInMultiplesOf, mc);
@@ -857,6 +869,7 @@ class ProgressiveEMICalculatorTest {
         Mockito.when(loanProductRelatedDetail.getRepaymentPeriodFrequencyType()).thenReturn(PeriodFrequencyType.MONTHS);
         Mockito.when(loanProductRelatedDetail.getRepayEvery()).thenReturn(1);
         Mockito.when(loanProductRelatedDetail.getCurrencyData()).thenReturn(currency);
+        Mockito.when(loanProductRelatedDetail.isInterestRecognitionOnDisbursementDate()).thenReturn(false);
 
         final ProgressiveLoanInterestScheduleModel interestSchedule = emiCalculator.generatePeriodInterestScheduleModel(
                 expectedRepaymentPeriods, loanProductRelatedDetail, List.of(), installmentAmountInMultiplesOf, mc);
@@ -906,6 +919,7 @@ class ProgressiveEMICalculatorTest {
         Mockito.when(loanProductRelatedDetail.getRepaymentPeriodFrequencyType()).thenReturn(PeriodFrequencyType.MONTHS);
         Mockito.when(loanProductRelatedDetail.getRepayEvery()).thenReturn(1);
         Mockito.when(loanProductRelatedDetail.getCurrencyData()).thenReturn(currency);
+        Mockito.when(loanProductRelatedDetail.isInterestRecognitionOnDisbursementDate()).thenReturn(false);
 
         final ProgressiveLoanInterestScheduleModel interestSchedule = emiCalculator.generatePeriodInterestScheduleModel(
                 expectedRepaymentPeriods, loanProductRelatedDetail, List.of(), installmentAmountInMultiplesOf, mc);
@@ -952,6 +966,7 @@ class ProgressiveEMICalculatorTest {
         Mockito.when(loanProductRelatedDetail.getRepaymentPeriodFrequencyType()).thenReturn(PeriodFrequencyType.MONTHS);
         Mockito.when(loanProductRelatedDetail.getRepayEvery()).thenReturn(1);
         Mockito.when(loanProductRelatedDetail.getCurrencyData()).thenReturn(currency);
+        Mockito.when(loanProductRelatedDetail.isInterestRecognitionOnDisbursementDate()).thenReturn(false);
 
         final ProgressiveLoanInterestScheduleModel interestSchedule = emiCalculator.generatePeriodInterestScheduleModel(
                 expectedRepaymentPeriods, loanProductRelatedDetail, List.of(), installmentAmountInMultiplesOf, mc);
@@ -988,6 +1003,7 @@ class ProgressiveEMICalculatorTest {
         Mockito.when(loanProductRelatedDetail.getRepaymentPeriodFrequencyType()).thenReturn(PeriodFrequencyType.MONTHS);
         Mockito.when(loanProductRelatedDetail.getRepayEvery()).thenReturn(1);
         Mockito.when(loanProductRelatedDetail.getCurrencyData()).thenReturn(currency);
+        Mockito.when(loanProductRelatedDetail.isInterestRecognitionOnDisbursementDate()).thenReturn(false);
 
         final ProgressiveLoanInterestScheduleModel interestSchedule = emiCalculator.generatePeriodInterestScheduleModel(
                 expectedRepaymentPeriods, loanProductRelatedDetail, List.of(), installmentAmountInMultiplesOf, mc);
@@ -1030,6 +1046,7 @@ class ProgressiveEMICalculatorTest {
         Mockito.when(loanProductRelatedDetail.getRepaymentPeriodFrequencyType()).thenReturn(PeriodFrequencyType.MONTHS);
         Mockito.when(loanProductRelatedDetail.getRepayEvery()).thenReturn(1);
         Mockito.when(loanProductRelatedDetail.getCurrencyData()).thenReturn(currency);
+        Mockito.when(loanProductRelatedDetail.isInterestRecognitionOnDisbursementDate()).thenReturn(false);
 
         final ProgressiveLoanInterestScheduleModel interestSchedule = emiCalculator.generatePeriodInterestScheduleModel(
                 expectedRepaymentPeriods, loanProductRelatedDetail, List.of(), installmentAmountInMultiplesOf, mc);
@@ -1063,6 +1080,7 @@ class ProgressiveEMICalculatorTest {
         Mockito.when(loanProductRelatedDetail.getRepaymentPeriodFrequencyType()).thenReturn(PeriodFrequencyType.WEEKS);
         Mockito.when(loanProductRelatedDetail.getRepayEvery()).thenReturn(1);
         Mockito.when(loanProductRelatedDetail.getCurrencyData()).thenReturn(currency);
+        Mockito.when(loanProductRelatedDetail.isInterestRecognitionOnDisbursementDate()).thenReturn(false);
 
         final ProgressiveLoanInterestScheduleModel interestSchedule = emiCalculator.generatePeriodInterestScheduleModel(
                 expectedRepaymentPeriods, loanProductRelatedDetail, List.of(), installmentAmountInMultiplesOf, mc);
@@ -1096,6 +1114,7 @@ class ProgressiveEMICalculatorTest {
         Mockito.when(loanProductRelatedDetail.getRepaymentPeriodFrequencyType()).thenReturn(PeriodFrequencyType.WEEKS);
         Mockito.when(loanProductRelatedDetail.getRepayEvery()).thenReturn(2);
         Mockito.when(loanProductRelatedDetail.getCurrencyData()).thenReturn(currency);
+        Mockito.when(loanProductRelatedDetail.isInterestRecognitionOnDisbursementDate()).thenReturn(false);
 
         final ProgressiveLoanInterestScheduleModel interestSchedule = emiCalculator.generatePeriodInterestScheduleModel(
                 expectedRepaymentPeriods, loanProductRelatedDetail, List.of(), installmentAmountInMultiplesOf, mc);
@@ -1129,6 +1148,7 @@ class ProgressiveEMICalculatorTest {
         Mockito.when(loanProductRelatedDetail.getRepaymentPeriodFrequencyType()).thenReturn(PeriodFrequencyType.DAYS);
         Mockito.when(loanProductRelatedDetail.getRepayEvery()).thenReturn(15);
         Mockito.when(loanProductRelatedDetail.getCurrencyData()).thenReturn(currency);
+        Mockito.when(loanProductRelatedDetail.isInterestRecognitionOnDisbursementDate()).thenReturn(false);
 
         final ProgressiveLoanInterestScheduleModel interestSchedule = emiCalculator.generatePeriodInterestScheduleModel(
                 expectedRepaymentPeriods, loanProductRelatedDetail, List.of(), installmentAmountInMultiplesOf, mc);
@@ -1171,6 +1191,7 @@ class ProgressiveEMICalculatorTest {
         Mockito.when(loanProductRelatedDetail.getRepaymentPeriodFrequencyType()).thenReturn(PeriodFrequencyType.MONTHS);
         Mockito.when(loanProductRelatedDetail.getRepayEvery()).thenReturn(1);
         Mockito.when(loanProductRelatedDetail.getCurrencyData()).thenReturn(currency);
+        Mockito.when(loanProductRelatedDetail.isInterestRecognitionOnDisbursementDate()).thenReturn(false);
 
         final ProgressiveLoanInterestScheduleModel interestSchedule = emiCalculator.generatePeriodInterestScheduleModel(
                 expectedRepaymentPeriods, loanProductRelatedDetail, List.of(), installmentAmountInMultiplesOf, mc);
@@ -1219,6 +1240,7 @@ class ProgressiveEMICalculatorTest {
         Mockito.when(loanProductRelatedDetail.getRepaymentPeriodFrequencyType()).thenReturn(PeriodFrequencyType.MONTHS);
         Mockito.when(loanProductRelatedDetail.getRepayEvery()).thenReturn(1);
         Mockito.when(loanProductRelatedDetail.getCurrencyData()).thenReturn(currency);
+        Mockito.when(loanProductRelatedDetail.isInterestRecognitionOnDisbursementDate()).thenReturn(false);
 
         final ProgressiveLoanInterestScheduleModel interestModel = emiCalculator.generatePeriodInterestScheduleModel(
                 expectedRepaymentPeriods, loanProductRelatedDetail, List.of(), installmentAmountInMultiplesOf, mc);
@@ -1348,6 +1370,7 @@ class ProgressiveEMICalculatorTest {
         Mockito.when(loanProductRelatedDetail.getRepaymentPeriodFrequencyType()).thenReturn(PeriodFrequencyType.MONTHS);
         Mockito.when(loanProductRelatedDetail.getRepayEvery()).thenReturn(1);
         Mockito.when(loanProductRelatedDetail.getCurrencyData()).thenReturn(currency);
+        Mockito.when(loanProductRelatedDetail.isInterestRecognitionOnDisbursementDate()).thenReturn(false);
 
         final ProgressiveLoanInterestScheduleModel interestModel = emiCalculator.generatePeriodInterestScheduleModel(
                 expectedRepaymentPeriods, loanProductRelatedDetail, List.of(), installmentAmountInMultiplesOf, mc);
@@ -1421,6 +1444,7 @@ class ProgressiveEMICalculatorTest {
         Mockito.when(loanProductRelatedDetail.getRepaymentPeriodFrequencyType()).thenReturn(PeriodFrequencyType.MONTHS);
         Mockito.when(loanProductRelatedDetail.getRepayEvery()).thenReturn(1);
         Mockito.when(loanProductRelatedDetail.getCurrencyData()).thenReturn(currency);
+        Mockito.when(loanProductRelatedDetail.isInterestRecognitionOnDisbursementDate()).thenReturn(false);
 
         final ProgressiveLoanInterestScheduleModel interestSchedule = emiCalculator.generatePeriodInterestScheduleModel(
                 expectedRepaymentPeriods, loanProductRelatedDetail, List.of(), installmentAmountInMultiplesOf, mc);
@@ -1459,6 +1483,7 @@ class ProgressiveEMICalculatorTest {
         Mockito.when(loanProductRelatedDetail.getRepaymentPeriodFrequencyType()).thenReturn(PeriodFrequencyType.MONTHS);
         Mockito.when(loanProductRelatedDetail.getRepayEvery()).thenReturn(1);
         Mockito.when(loanProductRelatedDetail.getCurrencyData()).thenReturn(currency);
+        Mockito.when(loanProductRelatedDetail.isInterestRecognitionOnDisbursementDate()).thenReturn(false);
 
         final ProgressiveLoanInterestScheduleModel interestSchedule = emiCalculator.generatePeriodInterestScheduleModel(
                 expectedRepaymentPeriods, loanProductRelatedDetail, List.of(), installmentAmountInMultiplesOf, mc);
@@ -1497,6 +1522,7 @@ class ProgressiveEMICalculatorTest {
         Mockito.when(loanProductRelatedDetail.getRepaymentPeriodFrequencyType()).thenReturn(PeriodFrequencyType.MONTHS);
         Mockito.when(loanProductRelatedDetail.getRepayEvery()).thenReturn(1);
         Mockito.when(loanProductRelatedDetail.getCurrencyData()).thenReturn(currency);
+        Mockito.when(loanProductRelatedDetail.isInterestRecognitionOnDisbursementDate()).thenReturn(false);
         List<LoanTermVariationsData> loanTermVariations = new ArrayList<>();
 
         final ProgressiveLoanInterestScheduleModel interestSchedule = emiCalculator.generatePeriodInterestScheduleModel(
@@ -1536,6 +1562,7 @@ class ProgressiveEMICalculatorTest {
         Mockito.when(loanProductRelatedDetail.getRepaymentPeriodFrequencyType()).thenReturn(PeriodFrequencyType.MONTHS);
         Mockito.when(loanProductRelatedDetail.getRepayEvery()).thenReturn(1);
         Mockito.when(loanProductRelatedDetail.getCurrencyData()).thenReturn(currency);
+        Mockito.when(loanProductRelatedDetail.isInterestRecognitionOnDisbursementDate()).thenReturn(false);
         List<LoanTermVariationsData> loanTermVariations = new ArrayList<>();
 
         final ProgressiveLoanInterestScheduleModel interestSchedule = emiCalculator.generatePeriodInterestScheduleModel(
@@ -1575,6 +1602,7 @@ class ProgressiveEMICalculatorTest {
         Mockito.when(loanProductRelatedDetail.getRepaymentPeriodFrequencyType()).thenReturn(PeriodFrequencyType.MONTHS);
         Mockito.when(loanProductRelatedDetail.getRepayEvery()).thenReturn(1);
         Mockito.when(loanProductRelatedDetail.getCurrencyData()).thenReturn(currency);
+        Mockito.when(loanProductRelatedDetail.isInterestRecognitionOnDisbursementDate()).thenReturn(false);
         List<LoanTermVariationsData> loanTermVariations = new ArrayList<>();
 
         final ProgressiveLoanInterestScheduleModel interestSchedule = emiCalculator.generatePeriodInterestScheduleModel(
@@ -1614,6 +1642,7 @@ class ProgressiveEMICalculatorTest {
         Mockito.when(loanProductRelatedDetail.getRepaymentPeriodFrequencyType()).thenReturn(PeriodFrequencyType.MONTHS);
         Mockito.when(loanProductRelatedDetail.getRepayEvery()).thenReturn(1);
         Mockito.when(loanProductRelatedDetail.getCurrencyData()).thenReturn(currency);
+        Mockito.when(loanProductRelatedDetail.isInterestRecognitionOnDisbursementDate()).thenReturn(false);
         List<LoanTermVariationsData> loanTermVariations = new ArrayList<>();
 
         final ProgressiveLoanInterestScheduleModel interestSchedule = emiCalculator.generatePeriodInterestScheduleModel(
@@ -1653,6 +1682,7 @@ class ProgressiveEMICalculatorTest {
         Mockito.when(loanProductRelatedDetail.getRepaymentPeriodFrequencyType()).thenReturn(PeriodFrequencyType.MONTHS);
         Mockito.when(loanProductRelatedDetail.getRepayEvery()).thenReturn(1);
         Mockito.when(loanProductRelatedDetail.getCurrencyData()).thenReturn(currency);
+        Mockito.when(loanProductRelatedDetail.isInterestRecognitionOnDisbursementDate()).thenReturn(false);
         List<LoanTermVariationsData> loanTermVariations = new ArrayList<>();
 
         final ProgressiveLoanInterestScheduleModel interestSchedule = emiCalculator.generatePeriodInterestScheduleModel(
@@ -1695,6 +1725,7 @@ class ProgressiveEMICalculatorTest {
         Mockito.when(loanProductRelatedDetail.getRepaymentPeriodFrequencyType()).thenReturn(PeriodFrequencyType.MONTHS);
         Mockito.when(loanProductRelatedDetail.getRepayEvery()).thenReturn(1);
         Mockito.when(loanProductRelatedDetail.getCurrencyData()).thenReturn(currency);
+        Mockito.when(loanProductRelatedDetail.isInterestRecognitionOnDisbursementDate()).thenReturn(false);
         List<LoanTermVariationsData> loanTermVariations = new ArrayList<>();
 
         final ProgressiveLoanInterestScheduleModel interestSchedule = emiCalculator.generatePeriodInterestScheduleModel(
@@ -1740,6 +1771,7 @@ class ProgressiveEMICalculatorTest {
         Mockito.when(loanProductRelatedDetail.getRepaymentPeriodFrequencyType()).thenReturn(PeriodFrequencyType.MONTHS);
         Mockito.when(loanProductRelatedDetail.getRepayEvery()).thenReturn(1);
         Mockito.when(loanProductRelatedDetail.getCurrencyData()).thenReturn(currency);
+        Mockito.when(loanProductRelatedDetail.isInterestRecognitionOnDisbursementDate()).thenReturn(false);
         List<LoanTermVariationsData> loanTermVariations = new ArrayList<>();
 
         final ProgressiveLoanInterestScheduleModel interestSchedule = emiCalculator.generatePeriodInterestScheduleModel(
@@ -1781,6 +1813,7 @@ class ProgressiveEMICalculatorTest {
         Mockito.when(loanProductRelatedDetail.getRepaymentPeriodFrequencyType()).thenReturn(PeriodFrequencyType.MONTHS);
         Mockito.when(loanProductRelatedDetail.getRepayEvery()).thenReturn(1);
         Mockito.when(loanProductRelatedDetail.getCurrencyData()).thenReturn(currency);
+        Mockito.when(loanProductRelatedDetail.isInterestRecognitionOnDisbursementDate()).thenReturn(false);
         List<LoanTermVariationsData> loanTermVariations = new ArrayList<>();
 
         final ProgressiveLoanInterestScheduleModel interestSchedule = emiCalculator.generatePeriodInterestScheduleModel(
@@ -1819,6 +1852,7 @@ class ProgressiveEMICalculatorTest {
         Mockito.when(loanProductRelatedDetail.getRepaymentPeriodFrequencyType()).thenReturn(PeriodFrequencyType.MONTHS);
         Mockito.when(loanProductRelatedDetail.getRepayEvery()).thenReturn(1);
         Mockito.when(loanProductRelatedDetail.getCurrencyData()).thenReturn(currency);
+        Mockito.when(loanProductRelatedDetail.isInterestRecognitionOnDisbursementDate()).thenReturn(false);
         List<LoanTermVariationsData> loanTermVariationsData = List.of(//
                 new LoanTermVariationsData(1L, LoanTermVariationType.DUE_DATE.getValue(), //
                         LocalDate.of(2024, 2, 1), null, //
@@ -1858,6 +1892,7 @@ class ProgressiveEMICalculatorTest {
         Mockito.when(loanProductRelatedDetail.getRepaymentPeriodFrequencyType()).thenReturn(PeriodFrequencyType.MONTHS);
         Mockito.when(loanProductRelatedDetail.getRepayEvery()).thenReturn(1);
         Mockito.when(loanProductRelatedDetail.getCurrencyData()).thenReturn(currency);
+        Mockito.when(loanProductRelatedDetail.isInterestRecognitionOnDisbursementDate()).thenReturn(false);
         List<LoanTermVariationsData> loanTermVariationsData = List.of(//
                 new LoanTermVariationsData(1L, LoanTermVariationType.DUE_DATE.getValue(), //
                         LocalDate.of(2024, 2, 1), null, //
@@ -1900,6 +1935,7 @@ class ProgressiveEMICalculatorTest {
         Mockito.when(loanProductRelatedDetail.getRepaymentPeriodFrequencyType()).thenReturn(PeriodFrequencyType.MONTHS);
         Mockito.when(loanProductRelatedDetail.getRepayEvery()).thenReturn(1);
         Mockito.when(loanProductRelatedDetail.getCurrencyData()).thenReturn(currency);
+        Mockito.when(loanProductRelatedDetail.isInterestRecognitionOnDisbursementDate()).thenReturn(false);
         List<LoanTermVariationsData> loanTermVariationsData = List.of(//
                 new LoanTermVariationsData(1L, LoanTermVariationType.DUE_DATE.getValue(), //
                         LocalDate.of(2024, 3, 1), null, //
@@ -1940,6 +1976,7 @@ class ProgressiveEMICalculatorTest {
         Mockito.when(loanProductRelatedDetail.getRepaymentPeriodFrequencyType()).thenReturn(PeriodFrequencyType.MONTHS);
         Mockito.when(loanProductRelatedDetail.getRepayEvery()).thenReturn(1);
         Mockito.when(loanProductRelatedDetail.getCurrencyData()).thenReturn(currency);
+        Mockito.when(loanProductRelatedDetail.isInterestRecognitionOnDisbursementDate()).thenReturn(false);
 
         final ProgressiveLoanInterestScheduleModel interestSchedule = emiCalculator.generatePeriodInterestScheduleModel(
                 expectedRepaymentPeriods, loanProductRelatedDetail, List.of(), installmentAmountInMultiplesOf, mc);
@@ -1989,6 +2026,7 @@ class ProgressiveEMICalculatorTest {
         Mockito.when(loanProductRelatedDetail.getRepaymentPeriodFrequencyType()).thenReturn(PeriodFrequencyType.MONTHS);
         Mockito.when(loanProductRelatedDetail.getRepayEvery()).thenReturn(1);
         Mockito.when(loanProductRelatedDetail.getCurrencyData()).thenReturn(currency);
+        Mockito.when(loanProductRelatedDetail.isInterestRecognitionOnDisbursementDate()).thenReturn(false);
 
         final ProgressiveLoanInterestScheduleModel interestSchedule = emiCalculator.generatePeriodInterestScheduleModel(
                 expectedRepaymentPeriods, loanProductRelatedDetail, List.of(), installmentAmountInMultiplesOf, mc);
@@ -2033,6 +2071,7 @@ class ProgressiveEMICalculatorTest {
         Mockito.when(loanProductRelatedDetail.getRepaymentPeriodFrequencyType()).thenReturn(PeriodFrequencyType.MONTHS);
         Mockito.when(loanProductRelatedDetail.getRepayEvery()).thenReturn(1);
         Mockito.when(loanProductRelatedDetail.getCurrencyData()).thenReturn(currency);
+        Mockito.when(loanProductRelatedDetail.isInterestRecognitionOnDisbursementDate()).thenReturn(false);
 
         final ProgressiveLoanInterestScheduleModel interestSchedule = emiCalculator.generatePeriodInterestScheduleModel(
                 expectedRepaymentPeriods, loanProductRelatedDetail, List.of(), installmentAmountInMultiplesOf, mc);
@@ -2082,6 +2121,7 @@ class ProgressiveEMICalculatorTest {
         Mockito.when(loanProductRelatedDetail.getRepaymentPeriodFrequencyType()).thenReturn(PeriodFrequencyType.MONTHS);
         Mockito.when(loanProductRelatedDetail.getRepayEvery()).thenReturn(1);
         Mockito.when(loanProductRelatedDetail.getCurrencyData()).thenReturn(currency);
+        Mockito.when(loanProductRelatedDetail.isInterestRecognitionOnDisbursementDate()).thenReturn(false);
 
         final ProgressiveLoanInterestScheduleModel interestSchedule = emiCalculator.generatePeriodInterestScheduleModel(
                 expectedRepaymentPeriods, loanProductRelatedDetail, List.of(), installmentAmountInMultiplesOf, mc);
@@ -2119,6 +2159,7 @@ class ProgressiveEMICalculatorTest {
         Mockito.when(loanProductRelatedDetail.getRepaymentPeriodFrequencyType()).thenReturn(PeriodFrequencyType.MONTHS);
         Mockito.when(loanProductRelatedDetail.getRepayEvery()).thenReturn(1);
         Mockito.when(loanProductRelatedDetail.getCurrencyData()).thenReturn(currency);
+        Mockito.when(loanProductRelatedDetail.isInterestRecognitionOnDisbursementDate()).thenReturn(false);
 
         final ProgressiveLoanInterestScheduleModel interestSchedule = emiCalculator.generatePeriodInterestScheduleModel(
                 expectedRepaymentPeriods, loanProductRelatedDetail, List.of(), installmentAmountInMultiplesOf, mc);
@@ -2156,6 +2197,7 @@ class ProgressiveEMICalculatorTest {
         Mockito.when(loanProductRelatedDetail.getRepaymentPeriodFrequencyType()).thenReturn(PeriodFrequencyType.MONTHS);
         Mockito.when(loanProductRelatedDetail.getRepayEvery()).thenReturn(2);
         Mockito.when(loanProductRelatedDetail.getCurrencyData()).thenReturn(currency);
+        Mockito.when(loanProductRelatedDetail.isInterestRecognitionOnDisbursementDate()).thenReturn(false);
 
         final ProgressiveLoanInterestScheduleModel interestSchedule = emiCalculator.generatePeriodInterestScheduleModel(
                 expectedRepaymentPeriods, loanProductRelatedDetail, List.of(), installmentAmountInMultiplesOf, mc);
@@ -2193,6 +2235,7 @@ class ProgressiveEMICalculatorTest {
         Mockito.when(loanProductRelatedDetail.getRepaymentPeriodFrequencyType()).thenReturn(PeriodFrequencyType.MONTHS);
         Mockito.when(loanProductRelatedDetail.getRepayEvery()).thenReturn(1);
         Mockito.when(loanProductRelatedDetail.getCurrencyData()).thenReturn(currency);
+        Mockito.when(loanProductRelatedDetail.isInterestRecognitionOnDisbursementDate()).thenReturn(false);
 
         final ProgressiveLoanInterestScheduleModel interestSchedule = emiCalculator.generatePeriodInterestScheduleModel(
                 expectedRepaymentPeriods, loanProductRelatedDetail, List.of(), installmentAmountInMultiplesOf, mc);
@@ -2230,6 +2273,7 @@ class ProgressiveEMICalculatorTest {
         Mockito.when(loanProductRelatedDetail.getRepaymentPeriodFrequencyType()).thenReturn(PeriodFrequencyType.MONTHS);
         Mockito.when(loanProductRelatedDetail.getRepayEvery()).thenReturn(1);
         Mockito.when(loanProductRelatedDetail.getCurrencyData()).thenReturn(currency);
+        Mockito.when(loanProductRelatedDetail.isInterestRecognitionOnDisbursementDate()).thenReturn(false);
 
         final ProgressiveLoanInterestScheduleModel interestSchedule = emiCalculator.generatePeriodInterestScheduleModel(
                 expectedRepaymentPeriods, loanProductRelatedDetail, List.of(), installmentAmountInMultiplesOf, mc);
@@ -2267,6 +2311,7 @@ class ProgressiveEMICalculatorTest {
         Mockito.when(loanProductRelatedDetail.getRepaymentPeriodFrequencyType()).thenReturn(PeriodFrequencyType.MONTHS);
         Mockito.when(loanProductRelatedDetail.getRepayEvery()).thenReturn(1);
         Mockito.when(loanProductRelatedDetail.getCurrencyData()).thenReturn(currency);
+        Mockito.when(loanProductRelatedDetail.isInterestRecognitionOnDisbursementDate()).thenReturn(false);
 
         final ProgressiveLoanInterestScheduleModel interestSchedule = emiCalculator.generatePeriodInterestScheduleModel(
                 expectedRepaymentPeriods, loanProductRelatedDetail, List.of(), installmentAmountInMultiplesOf, mc);
@@ -2284,6 +2329,72 @@ class ProgressiveEMICalculatorTest {
         checkPeriod(interestSchedule, 5, 867.65, 10.03, 857.62, 0.00, false);
     }
 
+    @Test
+    public void test_actual_actual_fraction_period_calculation_with_interestRecognitionFromDisbursementDate_false() {
+        MathContext mc = new MathContext(12, RoundingMode.HALF_UP);
+        final List<LoanScheduleModelRepaymentPeriod> expectedRepaymentPeriods = List.of(
+                repayment(1, LocalDate.of(2023, 11, 13), LocalDate.of(2023, 12, 13)),
+                repayment(2, LocalDate.of(2023, 12, 13), LocalDate.of(2024, 1, 13)),
+                repayment(3, LocalDate.of(2024, 1, 13), LocalDate.of(2024, 2, 13)),
+                repayment(4, LocalDate.of(2024, 2, 13), LocalDate.of(2024, 3, 13)),
+                repayment(5, LocalDate.of(2024, 3, 13), LocalDate.of(2024, 4, 13)),
+                repayment(6, LocalDate.of(2024, 4, 13), LocalDate.of(2024, 5, 13)));
+
+        final BigDecimal interestRate = BigDecimal.valueOf(9.99);
+
+        Mockito.when(loanProductRelatedDetail.getAnnualNominalInterestRate()).thenReturn(interestRate);
+        Mockito.when(loanProductRelatedDetail.getDaysInYearType()).thenReturn(DaysInYearType.ACTUAL.getValue());
+        Mockito.when(loanProductRelatedDetail.getDaysInMonthType()).thenReturn(DaysInMonthType.ACTUAL.getValue());
+        Mockito.when(loanProductRelatedDetail.getRepaymentPeriodFrequencyType()).thenReturn(PeriodFrequencyType.MONTHS);
+        Mockito.when(loanProductRelatedDetail.getRepayEvery()).thenReturn(1);
+        Mockito.when(loanProductRelatedDetail.getCurrencyData()).thenReturn(currency);
+        Mockito.when(loanProductRelatedDetail.isInterestRecognitionOnDisbursementDate()).thenReturn(false);
+
+        final ProgressiveLoanInterestScheduleModel interestSchedule = emiCalculator
+                .generatePeriodInterestScheduleModel(expectedRepaymentPeriods, loanProductRelatedDetail, List.of(), null, mc);
+
+        emiCalculator.addDisbursement(interestSchedule, LocalDate.of(2023, 11, 13), Money.of(currency, BigDecimal.valueOf(5000), mc));
+        checkPeriod(interestSchedule, 0, 857.71, 41.05, 816.66, 4183.34, false);
+        checkPeriod(interestSchedule, 1, 857.71, 35.45, 822.26, 3361.08, false);
+        checkPeriod(interestSchedule, 2, 857.71, 28.44, 829.27, 2531.81, false);
+        checkPeriod(interestSchedule, 3, 857.71, 20.04, 837.67, 1694.14, false);
+        checkPeriod(interestSchedule, 4, 857.71, 14.33, 843.38, 850.76, false);
+        checkPeriod(interestSchedule, 5, 857.73, 6.97, 850.76, 0.00, false);
+    }
+
+    @Test
+    public void test_actual_actual_fraction_period_calculation_with_interestRecognitionFromDisbursementDate_true() {
+        MathContext mc = new MathContext(12, RoundingMode.HALF_UP);
+        final List<LoanScheduleModelRepaymentPeriod> expectedRepaymentPeriods = List.of(
+                repayment(1, LocalDate.of(2023, 11, 13), LocalDate.of(2023, 12, 13)),
+                repayment(2, LocalDate.of(2023, 12, 13), LocalDate.of(2024, 1, 13)),
+                repayment(3, LocalDate.of(2024, 1, 13), LocalDate.of(2024, 2, 13)),
+                repayment(4, LocalDate.of(2024, 2, 13), LocalDate.of(2024, 3, 13)),
+                repayment(5, LocalDate.of(2024, 3, 13), LocalDate.of(2024, 4, 13)),
+                repayment(6, LocalDate.of(2024, 4, 13), LocalDate.of(2024, 5, 13)));
+
+        final BigDecimal interestRate = BigDecimal.valueOf(9.99);
+
+        Mockito.when(loanProductRelatedDetail.getAnnualNominalInterestRate()).thenReturn(interestRate);
+        Mockito.when(loanProductRelatedDetail.getDaysInYearType()).thenReturn(DaysInYearType.ACTUAL.getValue());
+        Mockito.when(loanProductRelatedDetail.getDaysInMonthType()).thenReturn(DaysInMonthType.ACTUAL.getValue());
+        Mockito.when(loanProductRelatedDetail.getRepaymentPeriodFrequencyType()).thenReturn(PeriodFrequencyType.MONTHS);
+        Mockito.when(loanProductRelatedDetail.getRepayEvery()).thenReturn(1);
+        Mockito.when(loanProductRelatedDetail.getCurrencyData()).thenReturn(currency);
+        Mockito.when(loanProductRelatedDetail.isInterestRecognitionOnDisbursementDate()).thenReturn(true);
+
+        final ProgressiveLoanInterestScheduleModel interestSchedule = emiCalculator
+                .generatePeriodInterestScheduleModel(expectedRepaymentPeriods, loanProductRelatedDetail, List.of(), null, mc);
+
+        emiCalculator.addDisbursement(interestSchedule, LocalDate.of(2023, 11, 13), Money.of(currency, BigDecimal.valueOf(5000), mc));
+        checkPeriod(interestSchedule, 0, 857.72, 41.05, 816.67, 4183.33, false);
+        checkPeriod(interestSchedule, 1, 857.72, 35.46, 822.26, 3361.07, false);
+        checkPeriod(interestSchedule, 2, 857.72, 28.44, 829.28, 2531.79, false);
+        checkPeriod(interestSchedule, 3, 857.72, 20.04, 837.68, 1694.11, false);
+        checkPeriod(interestSchedule, 4, 857.72, 14.33, 843.39, 850.72, false);
+        checkPeriod(interestSchedule, 5, 857.69, 6.97, 850.72, 0.00, false);
+    }
+
     @Nested
     class ChargeBackPrincipalAmt100DayInYears360DaysInMonth30RepayEvery1MonthTests {