diff --git a/app/integrations/simbrella.py b/app/integrations/simbrella.py
index ccb7620..57cf740 100644
--- a/app/integrations/simbrella.py
+++ b/app/integrations/simbrella.py
@@ -92,9 +92,8 @@ class SimbrellaClient:
         vat_fee = loan_charges.get("VAT")['amount']
         interest_fee = loan_charges.get("INTEREST")['amount']
         insurance_fee = loan_charges.get("INSURANCE")['amount']
-
+        product_id = str(loan_data.get('productId', ""))
         debtId = str(loan_data.get('debtId', "")).strip().zfill(6)
-        product_id = str(loan_data.get('productId', ''))
         disbursement_data = {
             "transactionId": loan_data.get('transactionId'),
             "fbnTransactionId": loan_data.get('transactionId'),
@@ -103,10 +102,10 @@ class SimbrellaClient:
             "accountId": loan_data.get('accountId'),
             "productId": str(loan_data.get('productId', "")),
             "provideAmount": loan_data.get('currentLoanAmount'),
-            "collectAmountInterest": interest_fee if product_id != '3MPC' else 0, #send charges for only 1 month loan
-            "collectAmountMgtFee": mgt_fee if product_id != '3MPC' else 0,
-            "collectAmountInsurance": insurance_fee if product_id != '3MPC' else 0,
-            "collectAmountVAT": vat_fee if product_id != '3MPC' else 0,
+            "collectAmountInterest": interest_fee if product_id != '3MPC' else 0,
+            "collectAmountMgtFee": mgt_fee,
+            "collectAmountInsurance": insurance_fee,
+            "collectAmountVAT": vat_fee,
             "countryId": "01",
             "comment": "Loan Disbursement",
         }
@@ -148,7 +147,17 @@ class SimbrellaClient:
                                                     result.get('responseMessage', ''))
                 reload_loan = LoanService.get_loan_by_transaction_id(transaction_id=data['transactionId'])
                 reload_loan_data = reload_loan.to_dict()
+                #mark repayment schedule as active
+                repayment_schedule = LoanRepaymentScheduleService.get_repayment_schedule_by_loan_id(
+                    reload_loan_data['debtId'], include_paid=False)
+                logger.info(f'Loan repayment schedule: {repayment_schedule}')
+                if repayment_schedule:
+                    for schedule in repayment_schedule:
+                        logger.info(f"Updating repayment schedule ID {schedule.id} status to ACTIVE")
+                        LoanRepaymentScheduleService.update_repayment_schedule_status_to_active(schedule.id)
+                        
                 SimbrellaClient.verify_disbursement_transaction(reload_loan_data)
+                
                 return ResponseHelper.success(response.json(), "Successful")
 
             else:
diff --git a/app/models/loan.py b/app/models/loan.py
index c9dd5aa..fc29e1e 100644
--- a/app/models/loan.py
+++ b/app/models/loan.py
@@ -236,9 +236,15 @@ class Loan(db.Model):
         """
         Get the latest loan without a disbursement date.
         """
-        return cls.query.filter(
-            cls.disburse_date.is_(None)
-        ).order_by(cls.created_at.desc()).first()
+        logger.info("Fetching latest loan without disburse date")
+        
+        try:
+            return cls.query.filter(
+                cls.disburse_date.is_(None)
+            ).order_by(cls.created_at.desc()).first()
+        except Exception as e:
+            logger.error(f"Error fetching latest loan without disburse date: {e}")
+            raise 
 
     @classmethod
     def get_latest_loan_with_disburse_date(cls):
diff --git a/app/models/loan_repayment_schedule.py b/app/models/loan_repayment_schedule.py
index a38d670..5592c8a 100644
--- a/app/models/loan_repayment_schedule.py
+++ b/app/models/loan_repayment_schedule.py
@@ -215,7 +215,25 @@ class LoanRepaymentSchedule(db.Model):
             logger.error(f"Error updating repayment schedule {schedule_id} after loan repayment: {e}")
             raise
 
-        
+    @classmethod
+    def update_repayment_schedule_status_to_active(cls, schedule_id):
+        """
+        Update repayment schedule status to ACTIVE.
+        """
+        try:
+            schedule = cls.query.get(schedule_id)
+            if not schedule:
+                raise ValueError(f"Schedule with ID {schedule_id} does not exist.")
+            schedule.paid_status = RepaymentScheduleStatus.ACTIVE
+            schedule.updated_at = datetime.now(timezone.utc)
+            db.session.commit()
+            logger.info(f"Updated repayment schedule ID {schedule_id} status to ACTIVE")
+            return schedule.to_dict()
+        except Exception as e:
+            db.session.rollback()
+            logger.error(f"Error updating repayment schedule status for schedule {schedule_id}: {e}")
+            raise
+         
     @classmethod
     def update_repayment_schedule_balance(cls, schedule_id, amount_collected):
         """
diff --git a/app/services/loan_repayment_schedule.py b/app/services/loan_repayment_schedule.py
index 7aca7df..5c44c0e 100644
--- a/app/services/loan_repayment_schedule.py
+++ b/app/services/loan_repayment_schedule.py
@@ -32,7 +32,12 @@ class LoanRepaymentScheduleService:
         Update repayment schedule status.
         """
         return LoanRepaymentSchedule.update_repayment_schedule_status(schedule_id)
-
+    @classmethod
+    def update_repayment_schedule_status_to_active(cls, schedule_id):
+        """
+        Update repayment schedule status.
+        """
+        return LoanRepaymentSchedule.update_repayment_schedule_status_to_active(schedule_id)
     @classmethod
     def update_repayment_schedule_balance(cls, schedule_id, amount_collected):
         """