Penalties for Non-Payment of a Loan
If the borrower doesn’t pay for a loan on time, this entails sanctions from the financial institutions. The debtor can be fined, charged interest, and other penalties applied under the contract. What is the threat of non-payment of loans in the US? How far may banks, pawnshops, and MFIs go in their requirements? Let’s figure it out, and take as an example loans that you can get from https://directloantransfer.com/1000-dollar-loan/ service.
Microfinance organizations (MFIs)
Loan debt to an MFI entails fines and penalties. The lender can raise the interest rate, which will increase the amount of debt. The penalty may reach 50% of the loan amount. Sanctions are individual in each organization. In case of refusal to repay the loan, the MFI goes to court or takes the following measures: