> 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)

![](/files/CiBZgZCfSVFy1dFQ6d37)

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)
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