diff --git a/pallets/loans/docs/types.md b/pallets/loans/docs/types.md
index ee5ef6bc33..3ae87a7ded 100644
--- a/pallets/loans/docs/types.md
+++ b/pallets/loans/docs/types.md
@@ -86,7 +86,8 @@ package valuation {
 
     enum ValuationMethod {
         DiscountedCashFlows: DiscountedCashFlows
-        OutstandingDebt
+        OutstandingDebt,
+        Cash
     }
 
     ValuationMethod *--> DiscountedCashFlows
diff --git a/pallets/loans/src/entities/pricing/internal.rs b/pallets/loans/src/entities/pricing/internal.rs
index af78ce7c09..f5e78c53fb 100644
--- a/pallets/loans/src/entities/pricing/internal.rs
+++ b/pallets/loans/src/entities/pricing/internal.rs
@@ -99,7 +99,7 @@ impl<T: Config> InternalActivePricing<T> {
 					origination_date,
 				)?)
 			}
-			ValuationMethod::OutstandingDebt => Ok(debt),
+			ValuationMethod::OutstandingDebt | ValuationMethod::Cash => Ok(debt),
 		}
 	}
 
diff --git a/pallets/loans/src/types/valuation.rs b/pallets/loans/src/types/valuation.rs
index b53ac6222c..63d2de67ec 100644
--- a/pallets/loans/src/types/valuation.rs
+++ b/pallets/loans/src/types/valuation.rs
@@ -106,6 +106,10 @@ pub enum ValuationMethod<Rate> {
 	DiscountedCashFlow(DiscountedCashFlow<Rate>),
 	/// Outstanding debt valuation
 	OutstandingDebt,
+	/// Equal to OutstandingDebt but signals
+	/// that the given loan is i.e. an account
+	/// holding cash
+	Cash,
 }
 
 impl<Rate> ValuationMethod<Rate>
@@ -115,7 +119,7 @@ where
 	pub fn is_valid(&self) -> bool {
 		match self {
 			ValuationMethod::DiscountedCashFlow(dcf) => dcf.discount_rate.per_year() <= One::one(),
-			ValuationMethod::OutstandingDebt => true,
+			ValuationMethod::OutstandingDebt | ValuationMethod::Cash => true,
 		}
 	}
 }