diff --git a/mifosng-provider/src/main/java/org/mifosplatform/portfolio/client/service/ClientWritePlatformServiceJpaRepositoryImpl.java b/mifosng-provider/src/main/java/org/mifosplatform/portfolio/client/service/ClientWritePlatformServiceJpaRepositoryImpl.java
index c1ea91100..37bcbbfd3 100644
--- a/mifosng-provider/src/main/java/org/mifosplatform/portfolio/client/service/ClientWritePlatformServiceJpaRepositoryImpl.java
+++ b/mifosng-provider/src/main/java/org/mifosplatform/portfolio/client/service/ClientWritePlatformServiceJpaRepositoryImpl.java
@@ -426,7 +426,7 @@ public class ClientWritePlatformServiceJpaRepositoryImpl implements ClientWriteP
                     ClientApiConstants.CLIENT_CLOSURE_REASON, closureReasonId);
 
             if (ClientStatus.fromInt(client.getStatus()).isClosed()) {
-                final String errorMessage = "Client is alread closed.";
+                final String errorMessage = "Client is already closed.";
                 throw new InvalidClientStateTransitionException("close", "is.already.closed", errorMessage);
             } else if (ClientStatus.fromInt(client.getStatus()).isUnderTransfer()) {
                 final String errorMessage = "Cannot Close a Client under Transfer";
@@ -456,6 +456,9 @@ public class ClientWritePlatformServiceJpaRepositoryImpl implements ClientWriteP
                 } else if (loanStatus.isAwaitingDisbursal()) {
                     final String errorMessage = "Client cannot be closed because of non-closed loans.";
                     throw new InvalidClientStateTransitionException("close", "loan.non-closed", errorMessage);
+                } else if (loanStatus.isOverpaid()) {
+                    final String errorMessage = "Client cannot be closed because of overpaid loans.";
+                    throw new InvalidClientStateTransitionException("close", "loan.non-closed", errorMessage);
                 }
             }
             final List<SavingsAccount> clientSavingAccounts = this.savingsRepository.findSavingAccountByClientId(clientId);
diff --git a/mifosng-provider/src/main/java/org/mifosplatform/portfolio/client/service/LoanStatusMapper.java b/mifosng-provider/src/main/java/org/mifosplatform/portfolio/client/service/LoanStatusMapper.java
index 881bb4991..87541e1f0 100644
--- a/mifosng-provider/src/main/java/org/mifosplatform/portfolio/client/service/LoanStatusMapper.java
+++ b/mifosng-provider/src/main/java/org/mifosplatform/portfolio/client/service/LoanStatusMapper.java
@@ -36,4 +36,8 @@ public class LoanStatusMapper {
     public boolean isClosed() {
         return Integer.valueOf(600).equals(this.statusId) || isWithdrawnByClient() || isRejected();
     }
+    
+    public boolean isOverpaid() {
+        return Integer.valueOf(700).equals(this.statusId);
+    }
 }
\ No newline at end of file