What Happens If You Don’t Pay Branch Loan?

Perhaps you borrowed money from the branch loan platform, but due to unfavorable factors, you are unable to repay the loan on time, and you have been wondering what will happen. We’re going to find out shortly.

Sometimes, we know that unforeseen negative  circumstances can happen to anybody at any time but it is always important to make proactive arrangements on how to repay a loan before requesting it. This is vital because if you fail to repay your loan on time, it may attract negative rewards. .

What Is A Branch Loan?

A branch loan is a kind of personal loan that is offered by the branch app. The app is designed such that it permits users to apply for loans of up to N500,000, and their accounts will be credited within minutes. Branch loans have a fixed interest rate, and borrowers can choose repayment terms ranging from four weeks to 20 weeks.

Consequences Of Not RePaying A Branch Loan

What Happens If You Don’t Pay Branch Loan?

If you fail to repay  your Branch loan on time, you may likely attract negative rewards for yourself which come with siff punishment. Here are some of the consequences of defaulting to repay Branch loan:

1.Late Fees

 If you miss a payment, Branch will charge you a late fee. Ordinarily, Branch may charge 3% late for late repayment but this percentage may vary depending on your loan amount and the state you live in. However, it is pertinent to note that late fees can quickly add up, which may make it more difficult to pay back your loan.

2. It Will Impact Your Credit Score Negatively

When you take out a loan, it’s vital to make your payments on time to avoid damaging your credit score. Failing to repay your Branch loan can have a negative impact on your credit score, making it harder for you to borrow money in the future.

3.Branch May Take You To Court

 If you continue to miss payments on your Branch loan, the company may go extra miles to take legal action against you. This could include taking you to court or hiring a collection agency to recover the debt. This could result in additional fees and expenses, as well as damage to your credit score.

4. It may be difficult for you to get loans in the future.

 If you fail to repay a Branch loan on time, it may be difficult for you to get approved for future loans from other lenders. This is because lenders will view you as a higher risk borrower, which could result in higher interest rates or loan denials.

5. Branch will report you to CIBIL

Tips On How To Avoid Defaulting Branch Loan

If you’re struggling to make your Branch loan payments, there are several steps you can take to avoid defaulting:

  • Contact Branch if you are experiencing challenges in repaying your loan.
  • If you don’t have the complete money, try and make part payment because that may reduce the penalty.
  • If you normally have challenges in managing your financial issues, we recommend you seek a financial counselor.

Can I Request To Repay My Loan At A Later Date?

No. You can’t request to repay your Branch loan at a later date. This is because Branch can’t change your repayment schedule once your loan has been approved. It is best to start making part payment before the due date. 


Taking out a loan can be a helpful way to access funds quickly, but it’s best to repay your loan on time because if you fail to repay your Branch loan, you may face late fees, damage to your credit score, legal action, and difficulty getting future loans. Hence, it is better to repay it on time  but if anything happens and you won’t be able to meet up, then contact Branch for assistance and further directive.

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