Event flow 04 for product type &1 from product category &2 not permitted

What causes this issue?

You have chosen the event flow <LS>First Scheduled Repayment</> (04) for
the product type &V1& from product category &V2&.
This combination is not permitted.

System Response

The system issues an error message and will not allow you to continue with this transaction until the error is resolved.

How to fix this error?

The event flow <LS>First Scheduled Repayment</> (04) can only be used
for product types from the product category <LS>Consumer Loans </>(340).
Enter a permitted combination.

Procedure for System Administrators

Error message extract from SAP system. Copyright SAP SE.