When a bank lends money, it will let the lender provide fixed assets such as houses and cars as collateral. When the lender can't repay the loan, the bank will apply to seal up the collateral and auction it.

2. Repay by the guarantee unit or guarantor.

Some lenders will seek third-party companies or individuals as guarantors for loans, and banks will make loans after confirming that the third-party guarantors meet the requirements. Once the lender is unable to repay, the third-party guarantor must repay.

3. Write-off within the system?

If the lender has no collateral and guarantor, and the bank can't recover the arrears by various legal means, then the bank will write off the loan.

Failure to repay will affect a person's credit information, which will seriously violate the law. If you borrow money, you must repay it on time.

Extended data:

Harm of dormant account

1. The bank evaluates the non-performing loan ratio of employees. If there are too many dormant accounts, it will affect employees' income, especially bonus income.

2. After the increase of bad debts, banks should make provision for bad debts according to law, which will directly reduce the profits and cash flow of banks.

3. Bad debts occupy too much bank funds, which has a serious impact on the capital adequacy ratio and will lead to a smaller scale of bank lending.

4. Branches with more bad debts will naturally fall behind in the internal evaluation, and there will be less policy inclination and financial support in the future, and the qualification for evaluating first will be cancelled.

References:

Baidu encyclopedia-dormant account