Default interest

Default interest is interest resulting from the late or overdue payment of a sum initially fixed by a commercial contract. This interest is paid by a debtor to his creditor to offset a loss occasioned by his late payment. This interest likewise applies in connection with the lending of money.

The default interest rate is set by law at 2%. Default interest is charged from the 1st day of the month following the month during which the debtor defaulted.

A distinction is made between default interest and compensatory interest.

For more information, do not hesitate to check our glossary about interests on debts.

Updated 20/12/2018

Definitions provided under this section refer to the Belgian situation; unless specified otherwise. The texts are meant to summarize concepts in daily language and should not be considered as comprehensive or definite. We welcome suggestions for modifications or additions at