diff --git a/lending/loan_management/doctype/loan_repayment_schedule/loan_repayment_schedule.py b/lending/loan_management/doctype/loan_repayment_schedule/loan_repayment_schedule.py
index 8c431cd8..da84680d 100644
--- a/lending/loan_management/doctype/loan_repayment_schedule/loan_repayment_schedule.py
+++ b/lending/loan_management/doctype/loan_repayment_schedule/loan_repayment_schedule.py
@@ -179,6 +179,8 @@ def on_cancel(self):
 
 		self.ignore_linked_doctypes = ["Loan Interest Accrual", "Loan Demand"]
 
+		self.db_set("status", "Cancelled")
+
 	def set_repayment_period(self):
 		if self.repayment_frequency == "One Time":
 			self.repayment_method = "Repay Over Number of Periods"
diff --git a/lending/loan_management/doctype/process_loan_classification/process_loan_classification.py b/lending/loan_management/doctype/process_loan_classification/process_loan_classification.py
index c27f12fd..3abe0a7f 100644
--- a/lending/loan_management/doctype/process_loan_classification/process_loan_classification.py
+++ b/lending/loan_management/doctype/process_loan_classification/process_loan_classification.py
@@ -33,7 +33,7 @@ def on_submit(self):
 				self.name,
 				self.payment_reference,
 				self.is_backdated,
-				self.force_update_dpd_in_loan
+				self.force_update_dpd_in_loan,
 			)
 		else:
 			BATCH_SIZE = 5000
@@ -76,7 +76,7 @@ def process_loan_classification_batch(
 				ignore_freeze=True if payment_reference else False,
 				is_backdated=is_backdated,
 				via_background_job=via_scheduler,
-				force_update_dpd_in_loan=force_update_dpd_in_loan
+				force_update_dpd_in_loan=force_update_dpd_in_loan,
 			)
 
 			if len(open_loans) > 1:
diff --git a/lending/patches.txt b/lending/patches.txt
index a4bc5d29..7ff7260b 100644
--- a/lending/patches.txt
+++ b/lending/patches.txt
@@ -34,4 +34,5 @@ lending.patches.v15_0.rename_irac_provisioning_configuration_loan_product
 lending.patches.v15_0.update_loan_product_accounts
 #lending.patches.v15_0.loan_interest_accrual_changes
 lending.patches.v15_0.create_accounting_dimensions_for_loan_doctypes
-lending.patches.v15_0.update_maturity_date
\ No newline at end of file
+lending.patches.v15_0.update_maturity_date
+lending.patches.v15_0.loan_repayment_schedule_status_patch
diff --git a/lending/patches/v15_0/loan_repayment_schedule_status_patch.py b/lending/patches/v15_0/loan_repayment_schedule_status_patch.py
new file mode 100644
index 00000000..dbaa5176
--- /dev/null
+++ b/lending/patches/v15_0/loan_repayment_schedule_status_patch.py
@@ -0,0 +1,10 @@
+import frappe
+from frappe.query_builder import DocType
+
+
+def execute():
+	LoanRepaymentSchedule = DocType("Loan Repayment Schedule")
+
+	frappe.qb.update(LoanRepaymentSchedule).set(LoanRepaymentSchedule.status, "Cancelled").where(
+		(LoanRepaymentSchedule.docstatus == 2) & (LoanRepaymentSchedule.status != "Cancelled")
+	).run()