A wilful defaulter is a person or entity who fails to repay a bank loan despite possessing the ability to make repayments. In other words, the borrower has the money, but lacks intent. Once a borrower is tagged as a wilful defaulter, the party cannot avail any additional facilities from the bank. Also, such a person cannot be on the Board of any company. Banks periodically publish the wilful defaulter list, and initiate further investigations and penal measures against such borrowers. Such investigations look into aspects such as diversion of the bank money for uses other than the stated ones and financial irregularities.