There is an upper limit. If a bank loan is overdue, 30%-50% overdue interest can be added to the loan interest rate. In the case of private loans, online loans, etc., the interest rate of overdue interest cannot exceed 36%, and the portion exceeding 36% is invalid. Generally speaking, the interest rate of overdue interest on regular loan products will not exceed 24%.

Under what circumstances will the bank impose penalty interest

1. Overdue repayment: This means that the borrower fails to repay the loan in full and on time as stipulated in the loan contract. In this case, the bank will calculate and charge penalty interest mercilessly, but different types of loans have different standards for calculating penalty interest.

2. Early repayment: Early repayment damages the interests of the bank. In order to impose a slight "punishment", the bank will impose penalty interest. However, many banks also stated that as long as the borrower makes early repayment after one year of repayment, liquidated damages will be waived. Therefore, before early repayment, the borrower should consult the lending bank clearly about the early repayment regulations. At the same time, Read the loan contract carefully to see if there are any instructions on early repayment in the contract.

3. Misappropriation of loan funds for other purposes: When applying for a loan, the bank will require the borrower to provide proof of loan purpose to ensure that the loan funds can be used exclusively. If the borrower fails to use the loan correctly as agreed after receiving the loan, once discovered by the bank, the loan will be withdrawn and penalty interest will be imposed. The penalty interest rate is generally 50%-100% higher than the original interest rate. Therefore, when using loan funds, do not think about convenience, so as not to cause unnecessary trouble to yourself.