What Happens if You Don’t Pay a Branch Loan? (6 Things)

What happens if you don’t pay the Branch loan? Is a pressing question that we’re going to answer today. Stay tuned!

If you took a loan from Branch and you’re unable to repay it on the agreed date and you’ve been wondering what could be the consequences, now worries! You’ve landed in the right article.

While there are ugly circumstances that we find ourselves in that may lead us to defaulting on a loan, failure to repay loans comes with lots of consequences ranging from disabling of account, late fees, report to the credit bureau to legal actions.

Branch Loan

What Happens if You Don't Pay a Branch Loan

Branch is one of the leading fintech companies in Nigeria, Mexico, India, Tanzania, and Kenya, that allows their users to access up to N500,00 collateral free loan. Accessing the loan is quite simple since the loan application process can be completed online and there is no endless paperwork as with conventional borrowings.

However, the Branch loan amount, interest rate, and loan term is dependent on the borrower’s creditworthiness and financial record. Hence, the amount that an individual can borrow varies. Meanwhile, if you default Branch loans, it comes with lots of consequences.

Why Branch Loan

Sometimes, we may need urgent money to meet our financial needs. And if such money is not handy, we may resort to borrowing to foot our bills and that is when Branch loans come into play. So, we need loans to cater for our financial needs hence the importance of Branch loans can’t be over-emphasized. However, if you take loans from financial institutions, it is best to pay off the loan on the agreed date to avoid the consequences that come with defaulting loans.

What Happens if You Don’t Pay a Branch Loan?

Defaulting on branch loans comes with lots of consequences; some of the negative rewards are outlined below: 

1. Deactivation of your Branch Account

Disabling your branch account is one of the major negative rewards that come when you fail to pay your branch loan. If you default on your branch loan, your account may be suspended, which will make it impossible for you to perform financial transactions with your branch account. 

2. Late Fees and Increase in the Interest Rate

Another consequence of defaulting Branch loans is that your loan may incur extra interest in addition to the late fees which will increase the total amount of money that you will repay. So, if you fail to repay your Branch loan, you should be ready to pay an additional amount that your loan may incur.

3. Report to the National Credit Reference Bureau

If you fail to repay Branch loan, they may report you to the National Credit Reference Bureau. Once you’re reported to the credit bureau, you may be blacklisted which will make it impossible to borrow loans from other financial establishments. This is one of the major consequences of defaulting Branch loans since it will bar you from taking loans from other financial institutions.

4. Negative Effect on Credit Score 

Defaulting Branch loans will also affect your credit score negatively. Since your creditworthiness is totally dependent on your credit score, once your credit score is affected negatively, it may reduce your chances of getting loans from credit institutions.  If your chances are reduced, you may not be able to get loans from certain institutions.

5. Calling of Contact and Harassment

Harassment and calling of contacts is another consequence of defaulting Branch loan. If you fail to repay your loan on the due date, Branch may have no other options than to call you and talk to you in a disrespectful manner. Apart from that, they may also call the contacts on your phone informing them that you’re owing the company. This is usually disheartening especially when they call important contacts on your phone because it may reduce the trust that your friends and family members have for you when they receive such calls.

6. Arrest and Legal Action 

In some scenarios, if Branch has exhausted all the measures within their reach, they will be left with no other options than to take legal action against you to recover their money. At this point, they may report you to security agencies that may arrest you and take you to court. If convicted, you will be made to pay your loan in addition with the interest and fees that it may have incurred.

Proactive Steps to Take if you’re Unable to Repay your Loan

If by any unforeseen circumstances that you’re unable to pay off your loan on the agreed date, you can take some of the measures below to avert the consequences. They are:

  • Contact the Branch customer care unit and explain to them what you are going through
  • Make part payment if you don’t have the total loan amount handy
  • Reach out to the customer care unit before the loan loan repayment due date and explain to them that you won’t meet up with repaying your loan. If you’re lucky, they may extend your repayment due date.


Failure to repay your Branch loan comes with lots of consequences such as late fees, disabling of account, report to the credit bureau, negative effect on the credit score, and legal actions. Hence, if you  encounter any unforeseen circumstances that may lead you to defaulting Branch loan, it makes sense to reach out to their customer care unit and explain reasons why you won’t be able to repay your loan on the due date.


  • Nwibo Calistus

    My name is Calistus. I am a seasoned financial expert with over four years of experience in the financial sector. With a background in accounting and financial management. Throughout my career, I have demonstrated a commitment to empowering individuals and businesses to make informed financial decisions. I am passionate about simplifying complex financial concepts. Which is evident in my published articles that are characterized by clarity, depth, and practicality. In addition to writing, I am also a financial adviser and a consultant. I have been invited to different industry conferences and events where I shared expertise and guidance on financial management and how to scale up businesses. So, if you need writing, speaking engagements, or consulting work, I remain committed to empowering individuals and businesses to achieve financial success and security.

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