diff --git a/app/models/family/auto_transfer_matchable.rb b/app/models/family/auto_transfer_matchable.rb
index 62e2295fa..60f583360 100644
--- a/app/models/family/auto_transfer_matchable.rb
+++ b/app/models/family/auto_transfer_matchable.rb
@@ -69,8 +69,12 @@ module Family::AutoTransferMatchable
           # Another concurrent job created the transfer; safe to ignore
         end
 
-        Transaction.find(match.inflow_transaction_id).update!(kind: "funds_movement")
-        Transaction.find(match.outflow_transaction_id).update!(kind: Transfer.kind_for_account(Transaction.find(match.outflow_transaction_id).entry.account))
+        inflow_transaction = Transaction.find(match.inflow_transaction_id)
+        outflow_transaction = Transaction.find(match.outflow_transaction_id)
+
+        # The kind is determined by the DESTINATION account (inflow), matching Transfer::Creator logic
+        inflow_transaction.update!(kind: "funds_movement")
+        outflow_transaction.update!(kind: Transfer.kind_for_account(inflow_transaction.entry.account))
 
         used_transaction_ids << match.inflow_transaction_id
         used_transaction_ids << match.outflow_transaction_id
diff --git a/test/models/family/auto_transfer_matchable_test.rb b/test/models/family/auto_transfer_matchable_test.rb
index 893da1992..41955f7eb 100644
--- a/test/models/family/auto_transfer_matchable_test.rb
+++ b/test/models/family/auto_transfer_matchable_test.rb
@@ -7,6 +7,7 @@ class Family::AutoTransferMatchableTest < ActiveSupport::TestCase
     @family = families(:dylan_family)
     @depository = accounts(:depository)
     @credit_card = accounts(:credit_card)
+    @loan = accounts(:loan)
   end
 
   test "auto-matches transfers" do
@@ -117,6 +118,54 @@ class Family::AutoTransferMatchableTest < ActiveSupport::TestCase
     end
   end
 
+  # Regression tests for loan transfer kind assignment bug
+  # The kind should be determined by the DESTINATION account (inflow), not the source (outflow)
+  test "loan payment (cash to loan) assigns loan_payment kind to outflow" do
+    # Cash → Loan: outflow from depository, inflow to loan
+    outflow_entry = create_transaction(date: Date.current, account: @depository, amount: 500)
+    inflow_entry = create_transaction(date: Date.current, account: @loan, amount: -500)
+
+    @family.auto_match_transfers!
+
+    outflow_entry.reload
+    inflow_entry.reload
+
+    # Destination is loan account, so outflow should be loan_payment
+    assert_equal "loan_payment", outflow_entry.entryable.kind
+    assert_equal "funds_movement", inflow_entry.entryable.kind
+  end
+
+  test "loan disbursement (loan to cash) assigns funds_movement kind to outflow" do
+    # Loan → Cash: outflow from loan, inflow to depository
+    outflow_entry = create_transaction(date: Date.current, account: @loan, amount: 500)
+    inflow_entry = create_transaction(date: Date.current, account: @depository, amount: -500)
+
+    @family.auto_match_transfers!
+
+    outflow_entry.reload
+    inflow_entry.reload
+
+    # Destination is depository (not loan), so outflow should be funds_movement
+    # This ensures loan disbursements don't incorrectly appear in cashflow
+    assert_equal "funds_movement", outflow_entry.entryable.kind
+    assert_equal "funds_movement", inflow_entry.entryable.kind
+  end
+
+  test "credit card payment (cash to credit card) assigns cc_payment kind to outflow" do
+    # Cash → Credit Card: outflow from depository, inflow to credit card
+    outflow_entry = create_transaction(date: Date.current, account: @depository, amount: 500)
+    inflow_entry = create_transaction(date: Date.current, account: @credit_card, amount: -500)
+
+    @family.auto_match_transfers!
+
+    outflow_entry.reload
+    inflow_entry.reload
+
+    # Destination is credit card, so outflow should be cc_payment
+    assert_equal "cc_payment", outflow_entry.entryable.kind
+    assert_equal "funds_movement", inflow_entry.entryable.kind
+  end
+
   private
     def load_exchange_prices
       rates = {
diff --git a/test/system/transactions_test.rb b/test/system/transactions_test.rb
index efc71b0a5..056bf8ad2 100644
--- a/test/system/transactions_test.rb
+++ b/test/system/transactions_test.rb
@@ -201,10 +201,11 @@ class TransactionsTest < ApplicationSystemTestCase
   end
 
   test "transfers should always sum to zero" do
+    # Use two accounts that result in funds_movement kind (not investment/crypto which become investment_contribution)
     asset_account = accounts(:other_asset)
-    investment_account = accounts(:investment)
+    depository_account = accounts(:depository)
     outflow_entry = create_transaction("outflow", Date.current, 500, account: asset_account)
-    inflow_entry = create_transaction("inflow", 1.day.ago.to_date, -500, account: investment_account)
+    inflow_entry = create_transaction("inflow", 1.day.ago.to_date, -500, account: depository_account)
     @user.family.auto_match_transfers!
     visit transactions_url