When Loans Turn Risky: My Take on Bank Loan Default — And What You Can Do
When Loans Turn Risky: My Take on Bank Loan Default — And What You Can Do “Default” sounds scary — and it can be. But with the right mindset and timely action, many situations are salvageable. What Does “Default on a Bank Loan” Really Mean? When we talk about defaulting on a bank loan, it means you’ve missed payments (EMIs) long enough that the bank considers you non-performing. Over time, this can escalate: the bank may start recovery actions, report you to credit bureaus (hurting your credit score), or in extreme cases pursue legal routes. The worst case is being labelled a wilful defaulter — meaning the bank concludes you had ability to pay but chose not to. From my experience, default is rarely a sudden event. It often begins with small cracks — delayed salary, sudden medical bills, job instability. Those early signals are your warning lights. Early Signs You Should Watch Out For Before things spiral, here are red flags I’ve seen in real cases: You miss one EMI or pay...