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if(application.genesis__Lending_Product__r.Name=='Restructured Term Loan')
{
    loanAccount.loan__Accrual_Start_Date__c= systemDate.addDays(application.Deferred_Payment__c*7);
}
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Numeric fields in Salesforce are not stored as Integer. If you want to pull a field value and save it as an integer, you have a few different options. One way to do it would look like:

Integer dayCount = 7 * Integer.valueOf(application.Deferred_Payment__c);
systemDate.addDays(dayCount);
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