The risk that borrowers are unable to repay their loans on time is

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Credit risk is the risk of default on a loan or bond by a borrower. It is the risk that a borrower may fail to make timely payments of principal and interest, or even default on the loan or bond. Sovereign risk refers to the risk that a government may default on its debt obligations. Currency risk is the risk of unfavorable movements in exchange rates, which can affect returns on investments denominated in foreign currencies. Liquidity risk is the risk of not being able to sell an investment quickly enough or at a fair price.

The Risk That Borrowers Are Unable to Repay Their Loans