diff --git a/mifosng-provider/src/main/java/org/mifosplatform/portfolio/loanaccount/domain/Loan.java b/mifosng-provider/src/main/java/org/mifosplatform/portfolio/loanaccount/domain/Loan.java
index f2699c4b5..ef902a2aa 100644
--- a/mifosng-provider/src/main/java/org/mifosplatform/portfolio/loanaccount/domain/Loan.java
+++ b/mifosng-provider/src/main/java/org/mifosplatform/portfolio/loanaccount/domain/Loan.java
@@ -1752,11 +1752,6 @@ public class Loan extends AbstractPersistable<Long> {
                     errorMessage);
         }
 
-        if (isClosed()) {
-            final String errorMessage = "Transactions of a closed loan cannot be adjusted.";
-            throw new InvalidLoanTransactionTypeException("transaction", "adjustment.is.not.allowed.on.closed.loan", errorMessage);
-        }
-
         transactionForAdjustment.reverse();
         if (newTransactionDetail.isRepayment() || newTransactionDetail.isInterestWaiver()) {
             changedTransactionDetail = handleRepaymentOrWaiverTransaction(newTransactionDetail, loanLifecycleStateMachine,