English Lexicon

Defaulted Loan

/dɪˈfɔːltɪd loʊn/
nounCEFR B2 (Upper)Top #1500 frequency
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Comprehensive Definitions & Senses

2 senses
As noun
  1. 1

    A loan on which the borrower has failed to make the required payments.

    "After several missed payments, the borrower was declared to have defaulted on the loan."
  2. 2

    A situation in which a borrower fails to fulfill their repayment obligations as per the loan agreement.

    "The bank reported a significant increase in defaulted loans during the economic downturn."

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Antonyms & Contrasting Words (1)

Linguistic Origin & Historical Etymology

The term 'defaulted loan' combines 'default,' originating from the Old French 'defaut' meaning 'failure,' and 'loan,' derived from the Old English 'lǣn,' meaning 'to lend.' The phrase evolved in the financial context to denote a failure to meet the legal obligations of a loan agreement.

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