diff --git a/src/app/products/loan-products/loan-product-stepper/loan-product-settings-step/loan-product-settings-step.component.ts b/src/app/products/loan-products/loan-product-stepper/loan-product-settings-step/loan-product-settings-step.component.ts
index 1f1e10d2c..f22f8b172 100644
--- a/src/app/products/loan-products/loan-product-stepper/loan-product-settings-step/loan-product-settings-step.component.ts
+++ b/src/app/products/loan-products/loan-product-stepper/loan-product-settings-step/loan-product-settings-step.component.ts
@@ -679,7 +679,8 @@ export class LoanProductSettingsStepComponent implements OnInit {
   clearProperty($event: Event, propertyName: string): void {
     if (propertyName === 'delinquencyBucketId') {
       this.loanProductSettingsForm.patchValue({
-        delinquencyBucketId: ''
+        delinquencyBucketId: '',
+        enableInstallmentLevelDelinquency: false
       });
     }
     this.loanProductSettingsForm.markAsDirty();