credmitra

Loans are an essential part of financial growth in India, whether for personal needs or business expansion. Banks and financial institutions lend money expecting timely repayment. However, loan defaults can occur for various reasons. Some borrowers stop paying because their income drops, businesses face losses, or unexpected circumstances arise. But in other cases, borrowers continue to have the capacity to pay but choose not to . These situations are treated very differently by the Reserve Bank of India (RBI). The term “wilful defaulter” is used only for borrowers who deliberately avoid repayment, and this classification often persists for years. Understanding this concept is crucial for anyone applying for loans, running a business, or managing personal finances in India. What Does Wilful Defaulter Mean? A wilful defaulter is a borrower who does not repay a loan despite having the ability to do so . The key factor here is intent . The borrower ma...