What are the consequences of repaying a loan with a loan?

To finance a loan with a loan means to repay the loan with a loan, and now many people repay the loan with a loan. Once the loan is repaid, then the loan will be repaid with a loan. What are the consequences of borrowing? Let’s take a look below.

1. Collection on multiple platforms: Using loans to support loans usually involves borrowing multiple online loan products at the same time. Online loans will be collected as long as they are overdue, and there will always be debt collection after borrowing this amount and returning the previous one. If you do not repay on time, if you are unable to obtain another loan due to insufficient personal credit, then multiple online loans that are overdue at the same time will encounter a large number of collections.

2. Charge penalty interest: If you repay the loan with a loan, it will cause the loan to be overdue. Once the loan is overdue, penalty interest will be charged. Penalty interest will be charged from the day of overdue until it is paid off. The longer the period, the more penalty interest will be charged.

3. Increase the repayment amount: Repaying a loan with a loan means repaying the loan with the loan money. The more loans you borrow, the more money you owe. Once a loan is repaid, you will not be able to repay the loan. In the above situation, the amount that needs to be repaid will be relatively large, thereby increasing the borrower's liability.

The consequences of repaying a loan with a loan are very serious. Even if you can still repay the loan with a loan, you still need to pay a lot of interest. Once you pay more interest, sooner or later you will have to pay it back. , so never repay a loan with a loan. What are the consequences of repaying a loan with a loan

The so-called "repaying a loan with a loan" means borrowing a new loan to repay an existing loan in your name, and this behavior does not use the customer's own The loan itself is prohibited from being used for credit repayment, so once discovered by the loan handling bank (lending institution/platform), it is likely to immediately terminate the lending relationship and require the customer to Pay off in one lump sum in advance.

As a result, I am afraid it will also affect the subsequent handling of credit business.

Everyone also needs to note that even if the loan handling bank (loan institution/platform) does not discover it for a while, because the customer has borrowed a new loan, even if the previous one has been repaid, the loan still needs to be repaid. The pressure actually doesn't lessen.

Therefore, for loans that cannot be repaid at the moment, it is not recommended that customers adopt the "loan to repay loan" method. They can try to borrow money from relatives and friends around them to repay;

or It is to proactively contact the customer service of the loan handling bank (loan institution/platform) to negotiate, and try to apply for extending the repayment period and repaying the debt in installments.

Loans (electronic IOU credit loans) are simply understood as borrowing money that requires interest.

Loan is a form of credit activity in which banks or other financial institutions lend monetary funds according to certain interest rates and must be returned. Loans in a broad sense refer to the general term for lending funds such as loans, discounts, and overdrafts.

Banks invest their concentrated currency and monetary funds through loans, which can meet the society's need for supplementary funds to expand reproduction and promote economic development. At the same time, banks can also obtain loan interest income. , increasing the bank’s own accumulation.

The "Three Characteristics Principle" refers to safety, liquidity, and efficiency. This is the fundamental principle of commercial bank loan operations. Article 4 of the "Commercial Bank Law" stipulates: "Commercial banks take safety, liquidity, and efficiency as their operating principles, implement independent operations, bear their own risks, be responsible for their own profits and losses, and self-discipline."

Loan safety It is the primary problem faced by commercial banks;

Liquidity refers to the ability to recover loans within a predetermined period or to quickly realize cash without loss, so as to meet the needs of customers to withdraw deposits at any time;

Efficiency is the basis for the bank's continued operations.

For example, if a long-term loan has a higher interest rate than a short-term loan, the efficiency will be good. However, if the loan period is longer, the risk will increase, the safety will be reduced, and the liquidity will become weaker. Therefore, there must be harmony between the "three natures" so that there will be no problems with loans.

Repayment method:

1. Equal principal and interest repayment: that is, the sum of the loan principal and interest is repaid in equal monthly installments. Housing provident fund loans and commercial personal housing loans from most banks adopt this approach.

In this way, the monthly repayment amount is the same;

2. Equal principal repayment: that is, the borrower will evenly distribute the loan amount and repay it in each period (month) throughout the repayment period, and pay it off at the same time A repayment method based on loan interest from the previous trading day to the current repayment date. In this way, the monthly repayment amount decreases month by month;

3. Monthly interest payment and principal repayment on maturity: that is, the borrower repays the loan principal in one lump sum on the loan maturity date [with a period of less than one year] (Applicable to loans (including one year)), the interest on the loan is calculated on a daily basis, and the interest is returned on a monthly basis;

4. Repay part of the loan in advance: that is, the borrower can apply to the bank to repay part of the loan amount in advance. Generally, The amount is 10,000 or an integral multiple of 10,000. After repayment, the loan bank will issue a new repayment plan, in which the repayment amount and repayment period have changed, but the repayment method remains unchanged, and the new The repayment period shall not exceed the original loan period.

5. Repay the entire loan in advance: The borrower applies to the bank to repay the entire loan amount in advance. After repayment, the lending bank will terminate the borrower's loan and handle the corresponding cancellation procedures.

6. Borrow and repay at any time: The interest after borrowing is calculated on a daily basis, and one day is used to calculate the interest. You can settle the payment in one lump sum at any time without penalty. What will be the consequences of loan repayment

Loan repayment means the lender borrows money to repay other loans, which means demolishing the east wall to pay for the west wall. Repaying the loan with a loan will put a heavy burden on the lender. If one day the loan capital chain is interrupted, it will have an impact on repayment and personal credit.

Repaying a loan with a loan may have very serious consequences, so borrowers must remain rational when applying for a loan and borrow money on the premise that their personal income can cover the loan expenses to avoid falling into debt. The quagmire, carrying heavy interest pressure.

Loan types

According to the loan period, it is divided into:

Medium and long-term loans - the loan period is more than 5 years

Medium-term loans - —The loan term is more than 1 year and within 5 years

Short-term loan—The loan term is within 1 year

Overdraft—The loan has no fixed term

Divided by currency:

Local currency loans

Foreign currency loans

Divided according to the nature of the lender:

Bank loans (self-operated Loan)

Syndicated loan

Entrusted loan (provident fund loan is a typical entrusted loan)

Specific loan

According to the loan entity The nature is divided into:

Economic organization loans

Enterprise loans

Public institution loans

Personal loans

According to the purpose of the loan, it is divided into:

Enterprise (economic organization) category

Fixed asset investment loans

Project financing loans

General fixed assets Loans

Working Capital Loans

Fundamental Working Capital Loans

Temporary Working Capital Loans

Bill Discounting

Personal

Personal business loans

Personal consumption loans

Housing mortgage loans (commonly known as mortgages)

First-hand housing loans

Second-hand housing loan

Housing loan increase

Financial housing loan

House refinancing

Commercial housing mortgage loan ( Some banks classify such loans as business loans)

First-hand housing loans

Second-hand housing loans

Car loans (including self-use cars and commercial vehicles, some Banks classify commercial vehicle loans as business loans)

First-hand cars (car purchase loans)

Second-hand cars (original car financing loans)

Motorcycle-related loans

Motorcycle financing (also known as motorcycle loan, motorcycle loan, motorcycle loan increase)

Car purchase installment loan (also known as car purchase installment, car purchase loan, motorcycle installment, or motorcycle installment loan)

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Student loans

Other consumer loans

Decoration loans

Travel loans

Durable consumer goods loans

Others

Personal pledge loans

Divided according to interest rates:

Fixed rate loans

Floating rate loans

Mixed-rate loans

According to the loan guarantee method, they are divided into:

Credit loans

Secured loans

Guaranteed loans

Mortgage Loan

Pledge Loan

Bill Discount

According to loan asset quality (risk level), it is divided into:

Normal loans

Focus on loans

Subprime loans

Doubtful loans

Loss loans

According to the loan status Divided into:

Normal loans

Overdue loans (0-180 days overdue)

Sluggish loans (181-360 days overdue)

Bad debt loans (overdue for more than 361 days)

Provide fund loans