diff --git a/src/app/products/loan-products/create-loan-product/create-loan-product.component.ts b/src/app/products/loan-products/create-loan-product/create-loan-product.component.ts
index e85902f633..b3a11e3536 100644
--- a/src/app/products/loan-products/create-loan-product/create-loan-product.component.ts
+++ b/src/app/products/loan-products/create-loan-product/create-loan-product.component.ts
@@ -154,7 +154,11 @@ export class CreateLoanProductComponent implements OnInit {
       loanProduct['dueDaysForRepaymentEvent'] = null;
       loanProduct['overDueDaysForRepaymentEvent'] = null;
     }
-    loanProduct['supportedInterestRefundTypes'] = this.mapStringEnumOptionToIdList(loanProduct['supportedInterestRefundTypes']);
+    if (this.isAdvancedPaymentStrategy) {
+      loanProduct['supportedInterestRefundTypes'] = this.mapStringEnumOptionToIdList(loanProduct['supportedInterestRefundTypes']);
+    } else {
+      delete loanProduct['supportedInterestRefundTypes'];
+    }
     delete loanProduct['useDueForRepaymentsConfigurations'];
 
     this.productsService.createLoanProduct(loanProduct)
diff --git a/src/app/products/loan-products/edit-loan-product/edit-loan-product.component.ts b/src/app/products/loan-products/edit-loan-product/edit-loan-product.component.ts
index d485bd40e8..c3dfae91f5 100644
--- a/src/app/products/loan-products/edit-loan-product/edit-loan-product.component.ts
+++ b/src/app/products/loan-products/edit-loan-product/edit-loan-product.component.ts
@@ -184,7 +184,11 @@ export class EditLoanProductComponent implements OnInit {
       loanProduct['dueDaysForRepaymentEvent'] = null;
       loanProduct['overDueDaysForRepaymentEvent'] = null;
     }
-    loanProduct['supportedInterestRefundTypes'] = this.mapStringEnumOptionToIdList(loanProduct['supportedInterestRefundTypes']);
+    if (this.isAdvancedPaymentStrategy) {
+      loanProduct['supportedInterestRefundTypes'] = this.mapStringEnumOptionToIdList(loanProduct['supportedInterestRefundTypes']);
+    } else {
+      delete loanProduct['supportedInterestRefundTypes'];
+    }
     delete loanProduct['useDueForRepaymentsConfigurations'];
 
     this.productsService.updateLoanProduct(this.loanProductAndTemplate.id, loanProduct)