What Is Loan Default?
Loan default is the failure to repay a loan as agreed, usually after a period of missed payments defined in the loan contract. Default can lead to collection activity, damage to credit reports, repossession or foreclosure on secured loans, and in some cases legal action.
Delinquency vs. Default
A loan becomes delinquent as soon as a payment is late; default is a later, more serious stage defined by the lender or by law, such as 270 days without payment on US federal student loans.
Secured vs. Unsecured
With secured loans, the lender can take the collateral; with unsecured debt, the lender relies on collection efforts.
🧮 Calculate It Yourself
Put Loan Default into practice with these free calculators — no sign-up, nothing stored.
🔗 Related Terms
More Loans & Credit Terms
- Amortization
- APR (Annual Percentage Rate)
- Auto Loan
- Balance Transfer
- Balloon Payment
- Buy Now, Pay Later (BNPL)
📖 Browse all glossary terms or explore all free calculators.
Last updated: September 29, 2026. This definition is for general educational purposes only. It is not financial, investment, tax, legal, or medical advice, and it does not recommend any product or course of action. For decisions about your own situation, consult a qualified professional.