Created a loan product with interest re-calculation option enabled and the necessary fields filled in.
Created a group and Loan. Disbursed the loan. Till this point no issue. On trying to make payment the is no error display, the repayment entry is not made.
Attaching the log file here.
Tested for the bug in 16.01.1, and 16.01.2 and confirm the defect is present in both the versions