What is Defaulting on Loan?

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
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• Hero FinCorp Limited
• 09, Basant Lok, Vasant Vihar, New Delhi - 110057
• Tel. [phone]
• Email Id Corporate.Care_at_HeroFinCorp.com
• Website https//www.herofincorp.com/
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