1. generate a penalty interest, and add 5% interest
although the policies of each lending institution are different, on the whole, banks will be more accommodating than small loan companies. If the credit loan is overdue, the lending institution will call the loan first to remind the borrower to repay, and the interest rate will rise as a daily penalty.
The penalty interest varies from lending institution to lending institution. For example, Citibank will charge 5% interest on the basis of the original interest rate, and some small lending companies may charge more liquidated damages. This means that you have borrowed an estimated 1, yuan, but if you don't pay it back for more than three months, you may end up paying more than 1, yuan in interest and late fees.
2. generate bad credit records, which will affect future loans and handling credit cards.
every day after your overdue, your name will appear in the internal system of the bank at the same time, which will be seen by the president and risk control later. After overdue, the credit report will inevitably leave a bad record. Once left, it may be kept for 3 to 7 years. If you want to borrow money from other banks in the future, you may not be able to apply easily because of bad credit.
if the overdue circumstances are serious, the mortgage and car loan will be affected in the future. Penalty interest is only a loss of money, while bad credit records are a loss of intangible assets, and the impact is irreparable by money.
3. Can't enjoy preferential loans, and even can't apply for loans
When many people apply for mortgages again, they find that they have left too many overdue repayment records on their old mortgages because of carelessness. In addition to default interest, they may not be able to successfully obtain preferential interest rates for bank mortgages. What's more, it is impossible to apply for mortgages again.
4. If you are blacklisted, your children will not be able to attend key schools
and some "Lao Lai" who deliberately delay their travel debts will be blacklisted. So that it is impossible to fly, high-speed rail, accommodation, etc.; What is more serious is that children will not be able to attend key schools; There will be more punishments in the future, and it can be said that life will be difficult.
5. Impact on personal career
For students who have been studying in loans overdue for more than 9 consecutive days and the circumstances are serious, the bank or school will publish the ID number and overdue information in the media, or inform the work unit. The bank will sue those who owe money maliciously or intentionally. If it is overdue for 9 consecutive days, and it can be remedied in time and repaid on time, the credit level will not be greatly affected.
6. The bank sends a lawyer's letter and brings a lawsuit in court
If you have not paid the fee for more than 3 months, it will be very serious! If the loan bank urges the loan to be received in accordance with the law, it will bring a lawsuit to the court according to the loan contract and guarantee contract (mortgage or pledge contract), and the court will take measures such as property preservation, including freezing the deposits in all bank accounts of the lender and the loan guarantor and sealing up the pledged property.
7. After the judgment is made, it will be enforced.
After the judgment is made, it will be enforced according to law (deducting deposits, auctioning collateral, etc.) to pay off the bank's loan losses. Specifically, it includes: loan principal, loan interest, overdue interest and penalty interest, as well as all litigation costs arising therefrom, and related expenses incurred when disposing of mortgaged (pledged) things.
8. Those with serious circumstances will be punished by law
Those who have the ability to refuse to implement the effective legal documents will be punished by law. The guarantor shall be liable for repayment if the debtor is unable to repay.
Legal basis:
Article 673 of the Civil Code of the People's Republic of China
If the borrower fails to use the loan according to the agreed purpose, the lender may stop issuing the loan, recover the loan in advance or terminate the contract.
article 674 the borrower shall pay the interest within the agreed time limit. If the time limit for paying interest is not stipulated or clearly stipulated, and it cannot be determined according to the provisions of Article 51 of this Law, if the loan period is less than one year, it shall be paid together with the loan; If the loan period is more than one year, it shall be paid at the end of each year, and if the remaining period is less than one year, it shall be paid together with the loan.
article 676 if the borrower fails to repay the loan within the agreed time limit, it shall pay the overdue interest in accordance with the agreement or the relevant provisions of the state.