> For the complete documentation index, see [llms.txt](https://docs.niftyapes.money/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.niftyapes.money/borrowers-dapp-guide/borrow-page/defaulting-on-a-loan.md).

# Defaulting on a Loan

If the borrower does not pay back the principal + interest at the end of the loan duration, the lender has the option of [seizing the asset.](/lenders-dapp-guide/lender-dashboard/seizing-assets-from-loan-defaults.md)

![](https://3101901544-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2Fai9iiM3lynt9siXMc0yj%2Fuploads%2F6xCiHKZlx7jcfL12kjNm%2Fimage.png?alt=media\&token=6ef2f021-6a59-4ae3-a473-4a6dbd72049d)

Borrowers can repay their loan and reclaim their collateral up until the transaction block when a Lender initiates the SeizeAsset call to the NiftyApes smart contract.

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[Loan Default FAQ](/overview/loan-default-faq.md)
{% endcontent-ref %}