Failing to repay a loan on time can result in serious legal and financial consequences for both individuals and businesses. Lenders may impose late payment charges, initiate recovery proceedings, report defaults to credit bureaus, or take legal action to recover outstanding dues.
Continued non-payment can damage your credit score, affect future borrowing opportunities, and, in some cases, lead to the seizure of secured assets. Timely repayment or early communication with the lender can help avoid costly legal complications.
