Defaulting on a loan is likely to lead to severe consequences such as having your debt passed on to a collection agency or being taken to court.
If you still cannot repay your debts then you may have to file for bankruptcy, which would damage your chances of being approved for a loan ever again.30 Jan 2019
What happens if you can’t pay your loan?
If You Don’t Pay
If you stop paying on a loan, you eventually default on that loan. The result: You’ll owe more money as penalties, fees and interest charges build up on your account. Your credit scores will also fall. It may take several years to recover, but you can rebuild your credit.
Can I go to jail for not paying a personal loan?
Ask for installment according to your convenience. Don’t go for new loan or credit card to repay one payment. You’ll not go to jail for not paying loan, you may need to represent yourself in court. But if you are ready to settle amount they can not drag you to jail.30 Apr 2018
What happens if the borrower fails to repay the loan?
In case of gold loan, if the borrower fails to repay the loan, the lender has the full authority to sell the gold and recover their money. If the price of gold is more the money left after taking the outstanding amount will be returned to the borrower.19 Dec 2017
What happens when personal loan is not paid?
Personal Loan: If you Can’t pay your Personal loan then the days of trouble is started for you. Basically personal loans are unsecured loan that means you don’t have to provide any security so bank can’t seize your property to recover the loan amount.9 Feb 2018