Article 196 A loan contract is a contract in which the borrower borrows money from the lender, repays the loan at maturity and pays interest.

Article 207 If the borrower fails to repay the loan within the agreed time limit, it shall do so in accordance with the agreement or relevant state regulations.

Provide for the payment of overdue interest.

To sum up, if the borrower fails to repay the loan within the time limit agreed in the loan contract, it shall pay the overdue interest according to the calculation method of overdue repayment agreed in the loan contract.

If the parties have no agreement or unclear agreement on the penalty interest, they may calculate the overdue interest generated during the period of default repayment according to the bank loan interest rate for the same period or the relevant provisions of the state.