1 / 8

What is Defaulting on Loan?

Defaulting on a loan can have multiple and serious consequences. Find out what they are and how you can avoid this extreme situation.

HeroFinCorp
Download Presentation

What is Defaulting on Loan?

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. What is Defaulting on Loan?

  2. Causes of Loan Repayment Default • Natural calamity • Socio-political issues • A medical or financial emergency

  3. What Happens in Case of Loan Default? • The lender offers 30 days grace period to pay the minimum amount • Student loans have a grace period of 9 months • Default for a month or two will attract late fees • A credit card will be blocked if you default for two to four months

  4. Loan Rates After Default • Also referred to as penalty rates • You must pay a higher interest rate • It includes a portion of the due loan written off by the lender

  5. Consequences of Loan Default • Secured Loan: The lender may seize the mortgaged property • Unsecured Loan: You may face legal trouble • A late fee or penalty must be paid • It will have a long-term impact on your credit history

  6. Steps to Prevent Default • Inform your lender and get your loan rescheduled • Check for financial support with your HR or employer • Ask for support from family or friends

  7. Conclusion Defaulting on loan repayment can have a long-term effect on your borrowing capacity. Make sure to avoid it.

  8. Thank You !Would Love to Hear From You Hero FinCorp Limited 09, Basant Lok, Vasant Vihar, New Delhi - 110057 Tel. 18001024145 Email Id: Corporate.Care@HeroFinCorp.com Website: https://www.herofincorp.com/ Know more- What is Defaulting on Loan?

More Related