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Updated: As per comment from Pramod
We allow creating and disbursing loans on past dates (this would cause issues when we track loan cycle at loan level, the functionality has to be updated to take disbursal date into cognizance for assigning a loan cycle).
Would need to keep this is mind if we ever get around to defining future loan installments and future loan amounts based on previous loan cycle (verified from GK database and they don't need it so ,we will not be thinking of adding any more features to loan cycle in the next 2 month kind of time-frame)