diff --git a/src/init.cpp b/src/init.cpp
index c15a81f4fb..098fa93916 100644
--- a/src/init.cpp
+++ b/src/init.cpp
@@ -1396,7 +1396,7 @@ void SetupInterrupts() {
     fStopOrInterrupt = isSet;
 }
 
-static void EraseLoanAmountsInClosedVaults(CCustomCSView &mnview) {
+static bool LoanAmountsInClosedVaults(CCustomCSView &mnview) {
     LOCK(cs_main);
 
     std::set<CVaultId> vaults;
@@ -1408,9 +1408,10 @@ static void EraseLoanAmountsInClosedVaults(CCustomCSView &mnview) {
     for (const auto &vaultId : vaults) {
         const auto vault = mnview.GetVault(vaultId);
         if (!vault) {
-            mnview.EraseVaultLoanTokens(vaultId);
+            return true;
         }
     }
+    return false;
 }
 
 bool AppInitMain(InitInterfaces& interfaces)
@@ -1774,7 +1775,10 @@ bool AppInitMain(InitInterfaces& interfaces)
                 // Ensure we are on latest DB version
                 pcustomcsview->SetDbVersion(CCustomCSView::DbVersion);
 
-                EraseLoanAmountsInClosedVaults(*pcustomcsview);
+                if (LoanAmountsInClosedVaults(*pcustomcsview)) {
+                    strLoadError = "Corrupted block database detected. You will need to rebuild the database using -reindex-chainstate.";
+                    break;
+                }
 
                 // make account history db
                 paccountHistoryDB.reset();
diff --git a/src/masternodes/loan.cpp b/src/masternodes/loan.cpp
index 452f5b6de1..beca57c2b2 100644
--- a/src/masternodes/loan.cpp
+++ b/src/masternodes/loan.cpp
@@ -552,10 +552,6 @@ Res CLoanView::SubLoanToken(const CVaultId &vaultId, CTokenAmount amount) {
     return Res::Ok();
 }
 
-void CLoanView::EraseVaultLoanTokens(const CVaultId &vaultId) {
-    EraseBy<LoanTokenAmount>(vaultId);
-}
-
 std::optional<CBalances> CLoanView::GetLoanTokens(const CVaultId &vaultId) {
     return ReadBy<LoanTokenAmount, CBalances>(vaultId);
 }
diff --git a/src/masternodes/loan.h b/src/masternodes/loan.h
index ea495ef71b..0aa17cae44 100644
--- a/src/masternodes/loan.h
+++ b/src/masternodes/loan.h
@@ -470,7 +470,6 @@ class CLoanView : public virtual CStorageView {
 
     Res AddLoanToken(const CVaultId &vaultId, CTokenAmount amount);
     Res SubLoanToken(const CVaultId &vaultId, CTokenAmount amount);
-    void EraseVaultLoanTokens(const CVaultId &vaultId);
     std::optional<CBalances> GetLoanTokens(const CVaultId &vaultId);
     void ForEachLoanTokenAmount(std::function<bool(const CVaultId &, const CBalances &)> callback);