> For the complete documentation index, see [llms.txt](https://docs.vm.com/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.vm.com/guide/loan/overdue-handling.md).

# Overdue Handling

### **For Borrowers**:

* If the borrower fails to repay on time, the platform will liquidate the collateralized NFT immediately upon the due date without any grace period. For installment loans, previously paid installments will not be refunded.

### **For Lenders**:

* If the lender opted for guarantee services, the platform will compensate the lender for the unpaid amount within 15 days.
* If the lender did not opt for guarantee services, the NFT associated with the order will be transferred to the lender as a substitute for the unpaid loan.