1. Calculation method of penalty interest: The online merchant loan platform usually calculates the penalty interest amount according to the overdue days and unpaid principal. Generally speaking, the longer the overdue days, the more unpaid principal and the higher the penalty interest amount.
2. Reasons for high penalty interest: In order to ensure the borrower to repay on time, the online merchant loan platform can set a higher penalty interest ratio to urge the borrower to repay. In addition, due to the consideration of risk management, the platform may think that overdue behavior increases the credit risk of the borrower, and deal with possible losses by adding a high penalty interest.
3. Affect the borrower's willingness to repay: A high penalty interest may bring great economic pressure to the borrower, resulting in a decrease in repayment willingness. In this case, the borrower may face greater difficulties and even further delay, thus forming a vicious circle.
Summary:
The penalty interest of loans overdue, an online merchant, is higher than the principal, mainly to force the borrower to repay the loan on time and reduce the overdue risk by increasing the economic pressure. However, high penalty interest may also cause unfair burden to borrowers and increase their repayment difficulties.
Extended data:
-In some cases, this practice of high penalty interest may be considered beyond the reasonable scope, and there is a problem of suspected usury. In China, the related lending behavior is usually regulated by the People's Republic of China (PRC) Contract Law and other laws and regulations.
-When applying for a loan, the borrower should carefully read and understand the relevant contract terms, especially the calculation method and amount of penalty interest. If you are in doubt or dissatisfied with the contents of the contract, you can communicate with the platform to find a solution.