# 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.

{% content-ref url="/pages/60NuRRhdsJDoeN0aG2TB" %}
[Loan Default FAQ](/overview/loan-default-faq.md)
{% endcontent-ref %}


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