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 4ff6935bc06..0ff728f1162 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
@@ -72,6 +72,7 @@
 import org.apache.fineract.portfolio.loanaccount.exception.LoanNotFoundException;
 import org.apache.fineract.portfolio.loanaccount.exception.LoanRepaymentScheduleNotFoundException;
 import org.apache.fineract.portfolio.loanaccount.service.LoanUtilService;
+import org.jetbrains.annotations.NotNull;
 import org.springframework.stereotype.Component;
 
 @Component
@@ -91,13 +92,50 @@ private void throwExceptionIfValidationWarningsExist(final List<ApiParameterErro
         }
     }
 
-    public void validateDisbursement(final String json, boolean isAccountTransfer) {
-
+    public void validateDisbursement(JsonCommand command, boolean isAccountTransfer, Long loanId) {
+        String json = command.json();
         if (StringUtils.isBlank(json)) {
             throw new InvalidJsonException();
         }
 
-        Set<String> disbursementParameters = null;
+        final Type typeOfMap = new TypeToken<Map<String, Object>>() {
+        }.getType();
+        this.fromApiJsonHelper.checkForUnsupportedParameters(typeOfMap, json, getDisbursementParameters(isAccountTransfer));
+
+        LoanApplicationValidator.validateOrThrow("loan.disbursement", baseDataValidator -> {
+            final JsonElement element = this.fromApiJsonHelper.parse(json);
+            final LocalDate actualDisbursementDate = this.fromApiJsonHelper.extractLocalDateNamed("actualDisbursementDate", element);
+            baseDataValidator.reset().parameter("actualDisbursementDate").value(actualDisbursementDate).notNull();
+
+            final String note = this.fromApiJsonHelper.extractStringNamed("note", element);
+            baseDataValidator.reset().parameter("note").value(note).notExceedingLengthOf(1000);
+
+            final BigDecimal principal = this.fromApiJsonHelper
+                    .extractBigDecimalWithLocaleNamed(LoanApiConstants.principalDisbursedParameterName, element);
+            baseDataValidator.reset().parameter(LoanApiConstants.principalDisbursedParameterName).value(principal).ignoreIfNull()
+                    .positiveAmount();
+
+            final BigDecimal netDisbursalAmount = this.fromApiJsonHelper
+                    .extractBigDecimalWithLocaleNamed(LoanApiConstants.disbursementNetDisbursalAmountParameterName, element);
+            baseDataValidator.reset().parameter(LoanApiConstants.disbursementNetDisbursalAmountParameterName).value(netDisbursalAmount)
+                    .ignoreIfNull().positiveAmount();
+
+            final BigDecimal emiAmount = this.fromApiJsonHelper.extractBigDecimalWithLocaleNamed(LoanApiConstants.fixedEmiAmountParameterName,
+                    element);
+            baseDataValidator.reset().parameter(LoanApiConstants.fixedEmiAmountParameterName).value(emiAmount).ignoreIfNull().positiveAmount()
+                    .notGreaterThanMax(principal);
+
+            validatePaymentDetails(baseDataValidator, element);
+
+            if (command.parameterExists("postDatedChecks")) {
+                // validate with post dated checks for the disbursement
+                this.validateDisbursementWithPostDatedChecks(command.json(), loanId);
+            }
+        });
+    }
+
+    private static @NotNull Set<String> getDisbursementParameters(boolean isAccountTransfer) {
+        Set<String> disbursementParameters;
 
         if (isAccountTransfer) {
             disbursementParameters = new HashSet<>(Arrays.asList("actualDisbursementDate", "externalId", "note", "locale", "dateFormat",
@@ -109,38 +147,7 @@ public void validateDisbursement(final String json, boolean isAccountTransfer) {
                     LoanApiConstants.principalDisbursedParameterName, LoanApiConstants.fixedEmiAmountParameterName,
                     LoanApiConstants.postDatedChecks, LoanApiConstants.disbursementNetDisbursalAmountParameterName));
         }
-
-        final Type typeOfMap = new TypeToken<Map<String, Object>>() {}.getType();
-        this.fromApiJsonHelper.checkForUnsupportedParameters(typeOfMap, json, disbursementParameters);
-
-        final List<ApiParameterError> dataValidationErrors = new ArrayList<>();
-        final DataValidatorBuilder baseDataValidator = new DataValidatorBuilder(dataValidationErrors).resource("loan.disbursement");
-
-        final JsonElement element = this.fromApiJsonHelper.parse(json);
-        final LocalDate actualDisbursementDate = this.fromApiJsonHelper.extractLocalDateNamed("actualDisbursementDate", element);
-        baseDataValidator.reset().parameter("actualDisbursementDate").value(actualDisbursementDate).notNull();
-
-        final String note = this.fromApiJsonHelper.extractStringNamed("note", element);
-        baseDataValidator.reset().parameter("note").value(note).notExceedingLengthOf(1000);
-
-        final BigDecimal principal = this.fromApiJsonHelper
-                .extractBigDecimalWithLocaleNamed(LoanApiConstants.principalDisbursedParameterName, element);
-        baseDataValidator.reset().parameter(LoanApiConstants.principalDisbursedParameterName).value(principal).ignoreIfNull()
-                .positiveAmount();
-
-        final BigDecimal netDisbursalAmount = this.fromApiJsonHelper
-                .extractBigDecimalWithLocaleNamed(LoanApiConstants.disbursementNetDisbursalAmountParameterName, element);
-        baseDataValidator.reset().parameter(LoanApiConstants.disbursementNetDisbursalAmountParameterName).value(netDisbursalAmount)
-                .ignoreIfNull().positiveAmount();
-
-        final BigDecimal emiAmount = this.fromApiJsonHelper.extractBigDecimalWithLocaleNamed(LoanApiConstants.fixedEmiAmountParameterName,
-                element);
-        baseDataValidator.reset().parameter(LoanApiConstants.fixedEmiAmountParameterName).value(emiAmount).ignoreIfNull().positiveAmount()
-                .notGreaterThanMax(principal);
-
-        validatePaymentDetails(baseDataValidator, element);
-
-        throwExceptionIfValidationWarningsExist(dataValidationErrors);
+        return disbursementParameters;
     }
 
     public void validateDisbursementWithPostDatedChecks(final String json, final Long loanId) {
diff --git a/fineract-provider/src/main/java/org/apache/fineract/portfolio/loanaccount/service/LoanWritePlatformServiceJpaRepositoryImpl.java b/fineract-provider/src/main/java/org/apache/fineract/portfolio/loanaccount/service/LoanWritePlatformServiceJpaRepositoryImpl.java
index 0040243bfe5..13f8b2630d1 100644
--- a/fineract-provider/src/main/java/org/apache/fineract/portfolio/loanaccount/service/LoanWritePlatformServiceJpaRepositoryImpl.java
+++ b/fineract-provider/src/main/java/org/apache/fineract/portfolio/loanaccount/service/LoanWritePlatformServiceJpaRepositoryImpl.java
@@ -291,15 +291,7 @@ public CommandProcessingResult disburseLoan(Long loanId, JsonCommand command, Bo
     @Override
     public CommandProcessingResult disburseLoan(final Long loanId, final JsonCommand command, Boolean isAccountTransfer,
             Boolean isWithoutAutoPayment) {
-
-        final AppUser currentUser = getAppUserIfPresent();
-
-        this.loanTransactionValidator.validateDisbursement(command.json(), isAccountTransfer);
-
-        if (command.parameterExists("postDatedChecks")) {
-            // validate with post dated checks for the disbursement
-            this.loanTransactionValidator.validateDisbursementWithPostDatedChecks(command.json(), loanId);
-        }
+        this.loanTransactionValidator.validateDisbursement(command, isAccountTransfer, loanId);
 
         Loan loan = this.loanAssembler.assembleFrom(loanId);
         // Fail fast if client/group is not active or actual loan status disallows disbursal
@@ -337,7 +329,6 @@ public CommandProcessingResult disburseLoan(final Long loanId, final JsonCommand
 
         // Get relevant loan collateral modules
         if ((loanCollateralManagements != null && !loanCollateralManagements.isEmpty()) && loan.getLoanType().isIndividualAccount()) {
-
             BigDecimal totalCollateral = BigDecimal.valueOf(0);
 
             for (LoanCollateralManagement loanCollateralManagement : loanCollateralManagements) {
@@ -384,6 +375,7 @@ public CommandProcessingResult disburseLoan(final Long loanId, final JsonCommand
         final List<Long> existingTransactionIds = new ArrayList<>();
         final List<Long> existingReversedTransactionIds = new ArrayList<>();
 
+        final AppUser currentUser = getAppUserIfPresent();
         final Map<String, Object> changes = new LinkedHashMap<>();
 
         final PaymentDetail paymentDetail = this.paymentDetailWritePlatformService.createAndPersistPaymentDetail(command, changes);