The problem of overdue loans is a critical issue faced by financial institutions worldwide, impacting their stability and profitability. This study aims to analyze the underlying causes of overdue loans and explore potential strategies for effective loan recovery. The research employs a mixed-methods approach, combining quantitative data analysis and qualitative case studies of selected borrowers with overdue loans. The quantitative analysis focuses on historical loan performance data to identify patterns and trends that contribute to delinquency. Key findings highlight several contributing factors to overdue loans, including economic downturns, borrower financial distress, insufficient amount, and inadequate loan monitoring mechanisms. Additionally, borrower-related factors, such as sudden life events and unforeseen emergencies, emerged as significant causes of payment delays.