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.
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 firstname.lastname@example.org.