New Delhi, Sept. 1 -- We often hear about large business groups defaulting on loans worth thousands of crores. But what happens when an individual borrower stops repaying a bank loan?

Here's what experts say about what happens legally and financially if you don't repay a loan.

Mukesh Chand, Senior Counsel at Economic Laws Practice, explained that this is governed by the terms of the loan agreement. A default usually means failure to pay an instalment on its due date. Therefore, even a one-day delay in EMI can be considered a default.

Malak Bhatt, Chamber Head at Chambers of Malak Bhatt, said that a loan account is classified as a non-performing asset (NPA) when dues remain overdue for more than 90 days. A secured lender may then issue ...