How Long Can You Not Pay a Loan

No one is immune to overdue payments. But should you worry about every missed day? Let’s figure out how long you can go without paying a loan.

Can You Stop Paying a Loan Without Consequences?

Completely avoiding loan payments without consequences is impossible, because even one day of delay carries penalties and fines. Moreover, unpleasant consequences can vary in each situation. Let’s look at several scenarios:

• Loan delay up to seven days. In this case, the bank will charge penalties. Such delays are considered technical and do not lead to serious consequences if they occur no more than twice a year.
• Delay up to one month. The bank will charge penalties, impose fines, and your credit history will worsen.
• Delay from one to six months. In addition to the above, you will receive calls from the overdue debt department, which will regularly remind you of your obligations.
• Delay of more than six months. The bank may stop calling you and prepare documents for collection, file a lawsuit for non-payment, or transfer the debt to collectors.

What Are the Penalties for Not Paying a Loan?

The consequences of non-payment depend on how long you have been out of the bank’s sight and have not paid. For example, if a monthly payment is missed, the bank will charge you fines and penalties (the full conditions and exact amounts are specified in the loan agreement), and this information will be sent to the credit bureau. In the future, it will be a bit harder for you to get a loan — either the approved amount will be smaller, or the terms will be less favorable. By the way, you can check your credit history and find out your credit score on Banki.ru for free and quickly.

If you simply stop repaying the debt, this may lead to problems with collectors and the court. Naturally, the bank will try to resolve the issue out of court — it will start calling, writing, and demanding payment of the loan along with all fines and penalties. At this stage, it is better to cooperate with the bank (if you have not done so before), explain your situation, and try to find a solution. For example, arrange a loan holiday or create a new payment schedule that suits both you and the lender.

Can You Be Imprisoned for Non-Payment of a Loan?

It is possible, but certain conditions must be met. Let’s go step by step.

In general, the relationship between the borrower and the lender is governed by the Civil Code. For example, there is an article on bankruptcy, according to which a non-payer whose debt exceeds 500,000 rubles can apply to the court to be declared bankrupt. But even if this is not done, liability for debts will be administrative.

Criminal liability for unpaid loans exists, but such measures are rarely applied. More precisely, in two cases: fraud and malicious evasion.

The article on fraud states that for criminal punishment, the court must prove that the borrower never intended to repay any debts and acted with malicious intent: forged documents, provided deliberately false information about employment and income, did not make loan payments. In this case, a criminal offense is evident. But if a person did not forge any documents, made payments diligently for some time, and then stopped due to a change in financial circumstances, a criminal case is unlikely to be initiated. At least for fraud.