Loan Default

Loan default occurs when a borrower fails to meet the agreed-upon repayment schedule for a loan, usually by missing payments for a certain period. This can happen with various types of loans, such as mortgages, personal loans, or credit cards. Defaulting on a loan can lead to serious consequences, like damage to credit scores, legal action, or the lender seizing assets. Essentially, default signifies that the borrower has not fulfilled their repayment obligation, which can impact both their financial stability and the lender’s ability to recover the owed funds.