Loan Non-Payments - What Happens to Unpaid Amount?

[BD]

I hadn't tracked it, but if a loan payment, interest, fees are not paid because cash level is too low, is this amount "eaten" by the bank?

Or, does it get added to the outstanding balance (net of principle payment)?  If so, are there non-payment penalties added to the balance?

If it is eaten, then it seems that there would be an advantage to get to a point to borrow heavily, then invest heavily to the point of carrying a negative cash balance for some time to avoid payments.

[Sanabas]

The loan is simply suspended for a week, and a week is tacked on to the finish date. The amount isn't eaten by the bank, but you're not penalised by having the total owing increase by having 1 week's interest added to it. So no reason to try and do it, but also no reason to be too worried if it happens accidentally.

[BD]

Cool, thanks for the explanation.