Reviewed by Vineeth | Updated on Sep 23, 2021



Delinquent represents someone or something, which is unable to achieve the requirement as specified by a contractual agreement, duty, or law. The best example of delinquent is the failure to make a payment or do a specific activity.

In the world of investments and finance, delinquency happens when a corporation or an individual has accepted a contractual responsibility to make payments towards a debt, such as a personal loan or the interest on a bond is unable to meet the requirement within the agreed timeframe or on a regular basis.

Other Meaning

Delinquent also refers to a person who has failed to do his or her duty or act in an anticipated manner in a certain situation or profession. For instance, a registered investment advisor who adopts a conservative approach in an investment avenue that needs aggressive tactics may be considered to be delinquent in his or her job role.

If an insurer is not sending out notification to a policyholder that his or her policy would be getting lapsed due to the non-payment of premium on-time can also be termed as delinquent.

Understanding Delinquent

In the field of personal finance, delinquent generally refers to a scenario in which a borrower is not making payments on time or is overdue on a particular payment, such as a mortgage, income tax, personal loan, or a credit card.

Being delinquent may lead to several consequences. The extent of consequences will depend on the kind, cause, and duration of the delinquency. Individuals delaying their credit card payment are going to be forced to pay out a late fee. When it comes to mortgage, the lender may initiate foreclosure if the borrower is unable to make the payments on a regular basis.

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