diff --git a/app/models/loan.py b/app/models/loan.py
index a6bdacc..1e60b8c 100644
--- a/app/models/loan.py
+++ b/app/models/loan.py
@@ -5,6 +5,7 @@ from app.models.account import Account
 from sqlalchemy.exc import IntegrityError
 from sqlalchemy.orm import relationship
 from dateutil.relativedelta import relativedelta 
+from datetime import timedelta
 
 
 class Loan(db.Model):
@@ -81,6 +82,7 @@ class Loan(db.Model):
             raise ValueError("Customer does not exist")
 
         now = datetime.now(timezone.utc)
+        due_date = now + timedelta(days=tenor)
 
         # Create and save the loan
         loan = cls(
@@ -96,7 +98,7 @@ class Loan(db.Model):
             upfront_fee = upfront_fee,
             repayment_amount = repayment_amount,
             installment_amount = installment_amount,
-            due_date=now,
+            due_date=due_date,
             tenor = tenor,
             status = status,
             eligible_amount =eligible_amount