| Parameter <\/td> | Loan Defaulter <\/td> | Wilful Defaulter <\/td><\/tr> |
| Meaning <\/td> | A borrower who has failed to repay loan dues on time. <\/td> | A wilful defaulter intentionally avoids repayment despite having the capacity or misuses borrowed funds. <\/td><\/tr> |
| Reason for default <\/td> | Financial hardship, income loss, emergencies or cash flow issues. <\/td> | Deliberate non-payment, diversion of funds or disposal of secured assets without approval. <\/td><\/tr> |
| RBI classification <\/td> | Not automatically classified under RBI’s wilful defaulter framework. <\/td> | Identified as a wilful defaulter according to RBI’s Master Directions after due process. <\/td><\/tr> |
| Intent <\/td> | May not involve any intention to avoid repayment. <\/td> | Intentional misconduct is a key factor in declaring a wilful defaulter. <\/td><\/tr> |
| Review process <\/td> | Based on repayment history and lender policies. <\/td> | A committee evaluates evidence before declaring a borrower a wilful defaulter. <\/td><\/tr> |
| Consequences <\/td> | Credit score damage, recovery actions and collection efforts. <\/td> | A wilful defaulter may face stricter borrowing restrictions, legal proceedings and reputational damage. <\/td><\/tr> |
| Future borrowing <\/td> | May become eligible again after regularising repayments. <\/td> | A wilful defaulter may find it significantly harder to obtain future credit from regulated lenders. <\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n |