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What are the differences between loan default & wilful default?

short by Jessica Rajan / on Sunday, 1 November, 2026
Loan default and wilful default differ in the reasons for non-payment, borrower's intention and the consequences they face. While a loan default may result from financial difficulties like job loss or medical emergencies, wilful default involves deliberately avoiding repayment. The differences also extend to lender action, regulatory penalties and borrower's future access to credit.
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