As a result, there will likely be an outstanding balance on the back end of the loan, which will also have to be paid off to cover the extra interest charges. Remember that a late payment throws off the original loan schedule when interest charges have been structured into the payments. Depending on how long it takes for the borrower to pay the overdue amount, a significant amount of interest could build up. Depending on the loan contract, lender, and state laws, this fee amount varies.Īdditional interest charges apply for each day a payment is late. Here's what to expect when a loan payment is submitted late.Īlmost all loans have a late fee that penalizes the borrower when the scheduled payment is not received. While online resources such as loan payment calculators can help people plan and estimate their total payment obligations, late payments can still occur.
Occasionally, borrowers delay payment because they don't have the funds in their bank account to cover it.
Sometimes borrowers get so busy they forget a payment is due. OneMain Financial: Late payments can happen now and again.
