diff --git a/fineract-provider/src/main/java/org/apache/fineract/portfolio/loanaccount/serialization/LoanTransactionValidator.java b/fineract-provider/src/main/java/org/apache/fineract/portfolio/loanaccount/serialization/LoanTransactionValidator.java
index 2b3d81e889b..6ee3a812eeb 100644
--- a/fineract-provider/src/main/java/org/apache/fineract/portfolio/loanaccount/serialization/LoanTransactionValidator.java
+++ b/fineract-provider/src/main/java/org/apache/fineract/portfolio/loanaccount/serialization/LoanTransactionValidator.java
@@ -84,6 +84,7 @@
 import org.apache.fineract.portfolio.loanaccount.exception.LoanDisbursalException;
 import org.apache.fineract.portfolio.loanaccount.exception.LoanNotFoundException;
 import org.apache.fineract.portfolio.loanaccount.exception.LoanRepaymentScheduleNotFoundException;
+import org.apache.fineract.portfolio.loanaccount.loanschedule.domain.LoanScheduleType;
 import org.apache.fineract.portfolio.loanaccount.service.LoanUtilService;
 import org.apache.fineract.portfolio.loanproduct.domain.LoanProduct;
 import org.jetbrains.annotations.NotNull;
@@ -778,7 +779,8 @@ public void validateClientOfficeJoiningDateIsBeforeTransactionDate(Loan loan, Lo
     }
 
     public void validateActivityNotBeforeLastTransactionDate(final Loan loan, final LocalDate activityDate, final LoanEvent event) {
-        if (!(loan.repaymentScheduleDetail().isInterestRecalculationEnabled() || loan.loanProduct().isHoldGuaranteeFunds())) {
+        if (!(loan.repaymentScheduleDetail().isInterestRecalculationEnabled() || loan.loanProduct().isHoldGuaranteeFunds())
+                || !loan.getLoanRepaymentScheduleDetail().getLoanScheduleType().equals(LoanScheduleType.CUMULATIVE)) {
             return;
         }
         LocalDate lastTransactionDate = loan.getLastUserTransactionDate();
diff --git a/integration-tests/src/test/java/org/apache/fineract/integrationtests/LoanTransactionBackdatedProgressiveTest.java b/integration-tests/src/test/java/org/apache/fineract/integrationtests/LoanTransactionBackdatedProgressiveTest.java
index e5f520d123c..52598308719 100644
--- a/integration-tests/src/test/java/org/apache/fineract/integrationtests/LoanTransactionBackdatedProgressiveTest.java
+++ b/integration-tests/src/test/java/org/apache/fineract/integrationtests/LoanTransactionBackdatedProgressiveTest.java
@@ -105,4 +105,14 @@ public void testProgressiveBackdatedGoodwillCredit() {
         });
     }
 
+    @Test
+    public void testProgressiveBackdatedInterestPaymentWaiver() {
+        runAt("01 July 2024", () -> {
+            loanTransactionHelper.makeInterestPaymentWaiver(loanId, new PostLoansLoanIdTransactionsRequest().dateFormat(DATETIME_PATTERN)
+                    .transactionDate("5 June 2024").locale("en").transactionAmount(100.0));
+
+            GetLoansLoanIdResponse loanDetails = loanTransactionHelper.getLoanDetails(loanId);
+            Assertions.assertTrue(loanDetails.getTransactions().size() >= 2);
+        });
+    }
 }