Can I go to jail for not paying a personal loan?
Category: Personal finance | Author: cashpey | Published: October 8, 2025
The question many people ask is; Am I going to jail because I did not pay a personal loan? The easy way out is no - non-payment is not the direct ticket to jail. Nonetheless, persistent defaults may damage your credit rating and lead to legal actions. Lenders may resort to civil courts in case the loan is not paid after several months. Where the case is on bouncing cheques, legal proceedings under Section 138 of the Negotiable Instruments Act may result in fine or imprisonment. Pay on time to prevent such problems.