What does my bank mean by this verbiage “a default interest rate of 37% per annum will be charged for each day that the loan is outstanding?” does this mean I will be charge 37% interest each day for the year?
If you are asking that will your interest rate change.The answer is Yes.
Day After Due Date = Default → Higher Interest + Penalties Apply
This simply means that if you default on your loan, the interest rate will increase to 37% until the default is cured or until the loan is written off as uncollectable. A write off or charge off is merely an accounting term. This is when the creditor can no longer carry the loan on their books as a performing asset.