As per RBI guidelines, a borrower or guarantor is classified as a Wilful Defaulter if the person has committed wilful default and the loan outstanding is at least:

• A wilful defaulter is a borrower or guarantor who deliberately defaults despite having the ability to repay, or who diverts/siphons off funds. • As per RBI’s (Treatment of Wilful Defaulters and Large Defaulters) Directions, 2024, the threshold for being categorized as a wilful defaulter is an outstanding amount of ₹25 lakh and above (or as may be revised by RBI in future). • In case of companies, not only the entity but also its promoters and directors can be held responsible. • For non-corporates, individuals responsible for management of the entity are covered. Thus, the minimum outstanding to classify someone as a wilful defaulter is ₹25 lakh.