diff --git a/src/app/loans/create-loans-account/create-loans-account.component.html b/src/app/loans/create-loans-account/create-loans-account.component.html
index 797948e88..8ac136e89 100644
--- a/src/app/loans/create-loans-account/create-loans-account.component.html
+++ b/src/app/loans/create-loans-account/create-loans-account.component.html
@@ -53,6 +53,7 @@
         [loansAccountProductTemplate]="loansAccountProductTemplate"
         [loansAccountTemplate]="loansAccountTemplate"
         [loansAccountFormValid]="loansAccountFormValid"
+        [loansSavingsAccountLinked]="loansSavingsAccountLinked"
       >
       </mifosx-loans-account-charges-step>
     </mat-step>
diff --git a/src/app/loans/create-loans-account/create-loans-account.component.ts b/src/app/loans/create-loans-account/create-loans-account.component.ts
index 5be4bafdb..02796808a 100644
--- a/src/app/loans/create-loans-account/create-loans-account.component.ts
+++ b/src/app/loans/create-loans-account/create-loans-account.component.ts
@@ -119,6 +119,10 @@ export class CreateLoansAccountComponent {
     return this.loansAccountDetailsForm.valid && this.loansAccountTermsForm.valid;
   }
 
+  get loansSavingsAccountLinked() {
+    return this.loansAccountDetailsStep.loansAccountDetailsForm.get('linkAccountId').value;
+  }
+
   /** Gets principal Amount */
   get loanPrincipal() {
     return this.loansAccountTermsStep.loansAccountTermsForm.value.principal;
diff --git a/src/app/loans/loans-account-stepper/loans-account-charges-step/loans-account-charges-step.component.ts b/src/app/loans/loans-account-stepper/loans-account-charges-step/loans-account-charges-step.component.ts
index 5a0064bd4..7b32aeab6 100644
--- a/src/app/loans/loans-account-stepper/loans-account-charges-step/loans-account-charges-step.component.ts
+++ b/src/app/loans/loans-account-stepper/loans-account-charges-step/loans-account-charges-step.component.ts
@@ -34,6 +34,8 @@ export class LoansAccountChargesStepComponent implements OnInit, OnChanges {
   @Input() loansAccountFormValid: boolean;
   /** active Client Members in case of GSIM Account */
   @Input() activeClientMembers?: any;
+  // returns the chosen savings account linked to the loan account
+  @Input() loansSavingsAccountLinked: any;
 
   /** Charges Data */
   chargeData: any;
@@ -111,6 +113,12 @@ export class LoansAccountChargesStepComponent implements OnInit, OnChanges {
     if (this.loansAccountProductTemplate) {
       this.loanPurposeOptions = this.loansAccountProductTemplate.loanPurposeOptions;
       this.chargeData = this.loansAccountProductTemplate.chargeOptions;
+      // filter chargeData to have charges that have chargePaymentMode not 'Account Transfer' if loansSavingsAccountLinked is false
+      if (!this.loansSavingsAccountLinked) {
+        this.chargeData = this.chargeData.filter(
+          (charge: any) => charge.chargePaymentMode?.value != 'Account transfer'
+        );
+      }
       if (this.loansAccountProductTemplate.overdueCharges) {
         this.overDueChargesDataSource = this.loansAccountProductTemplate.overdueCharges;
       }