Default Loan - Loan Service App

This endpoint marks a loan as defaulted due to non-payment. It is typically triggered when the borrower fails to meet repayment obligations within the allowed grace period. Marking a loan as defaulted may initiate downstream processes such as collateral liquidation, recovery actions, or reporting. What it does:

Updates the loan status to “defaulted”
Signals the platform to begin recovery or liquidation processes
Records the default event immutably on-chain

When to use it:

After the borrower misses scheduled repayments beyond the contractual grace period
As part of automated delinquency handling logic
Before initiating collateral enforcement or legal action

Request Body

The request body must include the unique identifier of the loan being marked as defaulted:

{
  "loanId": "0x5a0c0663a48e3abf16c7f0ee632b57da833e44e02a290fc0920ea2858da31f73"
}

Response

Returns a confirmation of success with the blockchain transaction hash:

{
  "transactionHash": "0x5a0c0663a48e3abf16c7f0ee632b57da833e44e02a290fc0920ea2858da31f73"
}