diff --git a/src/app/loans/loans-view/loan-term-variations-tab/loan-term-variations-tab.component.ts b/src/app/loans/loans-view/loan-term-variations-tab/loan-term-variations-tab.component.ts
index 0e36cfd3b..7e8fc7e59 100644
--- a/src/app/loans/loans-view/loan-term-variations-tab/loan-term-variations-tab.component.ts
+++ b/src/app/loans/loans-view/loan-term-variations-tab/loan-term-variations-tab.component.ts
@@ -6,7 +6,7 @@ import { ActivatedRoute } from '@angular/router';
   templateUrl: './loan-term-variations-tab.component.html',
   styleUrls: ['./loan-term-variations-tab.component.scss']
 })
-export class LoanTermVariationsTabComponent implements OnInit {
+export class LoanTermVariationsTabComponent {
 
   /** Loan Details Data */
   loanTermVariationsData: any[] = [];
@@ -21,8 +21,4 @@ export class LoanTermVariationsTabComponent implements OnInit {
     });
     this.loanId = this.route.parent.parent.snapshot.params['loanId'];
   }
-
-  ngOnInit(): void {
-  }
-
 }
diff --git a/src/app/products/loan-products/common/loan-product-summary/loan-product-summary.component.html b/src/app/products/loan-products/common/loan-product-summary/loan-product-summary.component.html
index f627c9f23..0ea1ff088 100644
--- a/src/app/products/loan-products/common/loan-product-summary/loan-product-summary.component.html
+++ b/src/app/products/loan-products/common/loan-product-summary/loan-product-summary.component.html
@@ -542,15 +542,19 @@ <h3 class="mat-h3" fxFlexFill>{{ 'labels.heading.Interest Recalculation' | trans
     <div fxFlexFill *ngIf="loanProduct.interestRecalculationData.recalculationRestFrequencyType.id !== 1"
       fxLayout="row wrap" fxLayout.lt-md="column">
       <span fxFlex="47%">{{ 'labels.inputs.Frequency Interval for recalculation' | translate}}:</span>
-      <span  fxFlex="53%">{{ loanProduct.interestRecalculationData.recalculationRestFrequencyInterval }}</span>
+      <span fxFlex="53%">{{ loanProduct.interestRecalculationData.recalculationRestFrequencyInterval }}</span>
       <div fxFlexFill *ngIf="loanProduct.recalculationRestFrequencyDate">
         <span fxFlex="47%">{{ 'labels.inputs.Rest Frequency Date' | translate}}:</span>
-        <span  fxFlex="53%">{{ loanProduct.interestRecalculationData.recalculationRestFrequencyDate }}</span>
+        <span fxFlex="53%">{{ loanProduct.interestRecalculationData.recalculationRestFrequencyDate }}</span>
       </div>
     </div>
     <div fxFlexFill>
       <span fxFlex="47%">{{ 'labels.inputs.Is Arrears recognization based on original schedule' | translate}}:</span>
-      <span  fxFlex="53%">{{ loanProduct.isArrearsBasedOnOriginalSchedule | yesNo }}</span>
+      <span fxFlex="53%">{{ loanProduct.interestRecalculationData.isArrearsBasedOnOriginalSchedule | yesNo }}</span>
+    </div>
+    <div fxFlexFill *ngIf="loanProduct.loanScheduleType.code === 'PROGRESSIVE'">
+      <span fxFlex="47%">{{ 'labels.inputs.Do not calculate interest on past due principal balances' | translate}}:</span>
+      <span fxFlex="53%">{{ loanProduct.interestRecalculationData.disallowInterestCalculationOnPastDue | yesNo }}</span>
     </div>
   </div>
 
diff --git a/src/app/products/loan-products/common/loan-product-summary/loan-product-summary.component.ts b/src/app/products/loan-products/common/loan-product-summary/loan-product-summary.component.ts
index 6cf47424c..d79904493 100644
--- a/src/app/products/loan-products/common/loan-product-summary/loan-product-summary.component.ts
+++ b/src/app/products/loan-products/common/loan-product-summary/loan-product-summary.component.ts
@@ -160,7 +160,8 @@ export class LoanProductSummaryComponent implements OnInit, OnChanges {
           allowCompoundingOnEod: this.loanProduct.allowCompoundingOnEod,
           isArrearsBasedOnOriginalSchedule: this.loanProduct.isArrearsBasedOnOriginalSchedule,
           isCompoundingToBePostedAsTransaction: this.loanProduct.isCompoundingToBePostedAsTransaction,
-          recalculationRestFrequencyInterval: this.loanProduct.recalculationRestFrequencyInterval
+          recalculationRestFrequencyInterval: this.loanProduct.recalculationRestFrequencyInterval,
+          disallowInterestCalculationOnPastDue: this.loanProduct.disallowInterestCalculationOnPastDue,
         };
       }
 
diff --git a/src/app/products/loan-products/loan-product-stepper/loan-product-settings-step/loan-product-settings-step.component.html b/src/app/products/loan-products/loan-product-stepper/loan-product-settings-step/loan-product-settings-step.component.html
index 357497e84..ba26d00de 100644
--- a/src/app/products/loan-products/loan-product-stepper/loan-product-settings-step/loan-product-settings-step.component.html
+++ b/src/app/products/loan-products/loan-product-stepper/loan-product-settings-step/loan-product-settings-step.component.html
@@ -433,6 +433,10 @@ <h3 fxFlex="96%" class="mat-h3">{{'labels.heading.Interest Recalculation' | tran
         {{'labels.inputs.Is Arrears recognization based on original schedule' | translate}}?
       </mat-checkbox>
 
+      <mat-checkbox *ngIf="loanProductSettingsForm.value.loanScheduleType === 'PROGRESSIVE'" fxFlex="98%" labelPosition="before" formControlName="disallowInterestCalculationOnPastDue" class="margin-v">
+        {{'labels.inputs.Do not calculate interest on past due principal balances' | translate}}
+      </mat-checkbox>
+
     </div>
 
     <mat-divider fxFlex="98%"></mat-divider>
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 96ac1abbf..45b6d3f7f 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
@@ -370,6 +370,7 @@ export class LoanProductSettingsStepComponent implements OnInit {
           this.loanProductSettingsForm.removeControl('recalculationRestFrequencyType');
           this.loanProductSettingsForm.removeControl('isArrearsBasedOnOriginalSchedule');
         }
+        this.enableFieldsWhenScheduleTypeIsProgressiveAndInterestRateRecalculationEnabled();
       });
 
     this.loanProductSettingsForm.get('holdGuaranteeFunds').valueChanges
@@ -491,9 +492,25 @@ export class LoanProductSettingsStepComponent implements OnInit {
         this.setRescheduleStrategies();
       }
       this.processingStrategyService.initialize(this.isAdvancedTransactionProcessingStrategy);
+      this.enableFieldsWhenScheduleTypeIsProgressiveAndInterestRateRecalculationEnabled();
     });
   }
 
+  private enableFieldsWhenScheduleTypeIsProgressiveAndInterestRateRecalculationEnabled() {
+    const isProgressiveLoan = this.loanProductSettingsForm.get('loanScheduleType').value === LoanProducts.LOAN_SCHEDULE_TYPE_PROGRESSIVE;
+    const isInterestRecalculationEnabled = this.loanProductSettingsForm.get('isInterestRecalculationEnabled').value == true;
+    const shouldControlExists = isProgressiveLoan && isInterestRecalculationEnabled;
+    const isControlExists = this.loanProductSettingsForm.contains('disallowInterestCalculationOnPastDue');
+
+    if (shouldControlExists && !isControlExists) {
+      this.loanProductSettingsForm.addControl('disallowInterestCalculationOnPastDue', new UntypedFormControl(''));
+      this.loanProductSettingsForm.patchValue({'disallowInterestCalculationOnPastDue': this.loanProductsTemplate.interestRecalculationData?.disallowInterestCalculationOnPastDue ?? false});
+    } else if (isControlExists && !shouldControlExists) {
+      this.loanProductSettingsForm.patchValue({'disallowInterestCalculationOnPastDue': undefined });
+      this.loanProductSettingsForm.removeControl('disallowInterestCalculationOnPastDue');
+    }
+  }
+
   private setRescheduleStrategies() {
     if (this.advancedTransactionProcessingStrategyDisabled) {
       this.rescheduleStrategyTypeData = this.rescheduleStrategyTypeDataBase.filter(
diff --git a/src/app/products/loan-products/models/loan-product.model.ts b/src/app/products/loan-products/models/loan-product.model.ts
index b72d8b99e..e0e08e729 100644
--- a/src/app/products/loan-products/models/loan-product.model.ts
+++ b/src/app/products/loan-products/models/loan-product.model.ts
@@ -52,6 +52,7 @@ export interface LoanProduct {
   recalculationCompoundingFrequencyType?:                    number;
   recalculationRestFrequencyType?:                           number;
   allowCompoundingOnEod?:                                    boolean;
+  disallowInterestCalculationOnPastDue?:                     boolean;
   isArrearsBasedOnOriginalSchedule?:                         boolean;
   isCompoundingToBePostedAsTransaction?:                     boolean;
   recalculationRestFrequencyInterval?:                       number;
@@ -168,4 +169,5 @@ export interface InterestRecalculationData {
   isCompoundingToBePostedAsTransaction:   boolean;
   preClosureInterestCalculationStrategy:  OptionData;
   allowCompoundingOnEod:                  boolean;
+  disallowInterestCalculationOnPastDue:   boolean;
 }
diff --git a/src/assets/translations/en-US.json b/src/assets/translations/en-US.json
index b009717ae..bc009cbf7 100644
--- a/src/assets/translations/en-US.json
+++ b/src/assets/translations/en-US.json
@@ -1506,6 +1506,7 @@
             "Dividend Period End Date": "Dividend Period End Date",
             "Dividend Period Start Date": "Dividend Period Start Date",
             "Dividends": "Dividends",
+            "Do not calculate interest on past due principal balances": "Do not calculate interest on past due principal balances",
             "Documents": "Documents",
             "Document Key": "Document Key",
             "Document Type": "Document Type",