Loans overdue repayment will generate penalty interest. How to calculate the penalty interest of unsecured loans? First of all, the penalty interest standards of different lending institutions are not necessarily the same, and the loan contract shall prevail. The central bank's regulations on penalty interest require that the penalty interest of financial institutions shall not exceed 150% of the agreed loan interest rate. In fact, the penalty interest of most lending institutions is charged at 150% of the loan interest rate, especially unsecured loans; Secondly, overdue penalty interest is not compound interest. During the calculation of default interest, loan interest can no longer be calculated. Penalty interest can no longer be calculated together with interest. (The penalty interest/late payment fee for credit cards of some banks is calculated according to compound interest); When the borrower repays, the repayment sequence should be: overdue penalty interest, interest and principal. On February 6th, 2003, 5438+00 Central Bank issued the Notice of the People's Bank of China on Issues Related to RMB Loan Interest Rate, which stipulated that the default interest rate of overdue loans (loans that the borrower failed to repay on the date agreed in the contract) would be changed from the current daily interest rate of 2. 1% to 30%-50% higher than the loan interest rate stipulated in the loan contract. If the borrower fails to use the loan according to the purpose agreed in this contract, the penalty interest rate will be changed from the current daily interest rate of five ten thousandths to 50%- 100% higher than the loan interest rate stipulated in the loan contract. For loans that are overdue or not used according to the purpose agreed in this contract, interest will be charged at the default interest rate from the date when they are used in loans overdue or not according to the purpose agreed in this contract until the principal and interest are fully paid off. For the interest that cannot be paid on time, the compound interest shall be calculated and determined according to the penalty interest rate.

1. When the loan fails to pay off the interest on time as agreed in the contract, the bank credit information system will automatically generate a bad record (blacklist). In the future, all trading units with credit requirements will reject their applications (such as various loans and handling credit cards).

2. After the loan expires, the credit society urges the lender to repay it. If it refuses to repay, the credit cooperative can bring a lawsuit to the court according to law, and the lender can be executed after the court decides. If the lender fails to repay the loan as required during the execution period, the court may detain the lender according to law on the grounds of refusing to execute the judgment of the people's court, or even sentence the lender to fixed-term imprisonment. After you are released from prison, you are still obligated to repay the loan. Credit cooperatives will issue large credit loans without mortgage guarantee, and the parties will be subject to administrative sanctions and criminal responsibility.