Loan Default

&
Recovery Proccess

Shubham Mishra
Nikhil Burman
Ajay Singh Saktawat
Ashish C Raj
What is a Defaulted Loan?

If you can't make payments

Loan default occurs when a Defaulting will drastically on time, it's important to
borrower fails to pay back a reduce your credit score contact your lender or loan
debt according to the initial and impact your ability to servicer to discuss
arrangement.  receive future credit. restructuring your loan
terms.
How Loan Default Works ?

• Defaulting on a loan will cause a substantial and lasting drop in the

debtor's credit score, as well as extremely high interest rates on any future
loan.

•  For loans secured with collateral, defaulting will likely result in the pledged
asset being seized by the bank.

•  The most popular types of consumer loans that are backed by collateral
are mortgages, auto loans and secured personal loans. 
 How Loan Default Works ?
Loan Type What Can Happen After Default?

Student Loan Wage garnishment

Mortgage Home foreclosure

Credit Card Possible lawsuit and wage garnishment

Auto Loan Car repossession

Secured Personal or Business Loan Asset seizure

Unsecured Personal or Business Loan Lawsuit and revenue or wage garnishment

 Loan Recovery
Techniques Every Lender
Must Know About!

1. Understand the applicant’s

creditworthiness better

2. Automate collections

3. Monitor customers’ activities in real-

time
THANK
YOU !!