What happens if the maturity date of a loan is not met?

If the maturity date of a loan is not met, it is generally considered a default on the loan. Depending on the terms of the loan agreement, the lender may take legal action to recover the outstanding balance, which may include penalties, fees, and additional interest. In some cases, the lender may also seize collateral that was put up for the loan. It is important to carefully read and understand the terms of any loan agreement and to make sure that the borrower can realistically meet the obligations set forth in the agreement.