Repeated defaulters can land in trouble

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What mistakes committed by a loan-holder make him a defaulter?

A loan holder becomes a defaulter if he does not make payments as promised. This could be in the form of EMIs on loans or minimum dues on credit cards. If the cheque or the Electronic Clearing Service (ECS) bounce, on account of various reasons like insufficient funds, incorrect details, signature mismatch, stopped by issuer, etc, and the payment is not realised by the bank, the loan holder is called a defaulter. A loan holder can correct this by making the payment in cash or by issuing another cheque for the payment. Repeated defaulters are reported to the credit bureau.