Description:

1. According to the common online loan contract terms, the borrower fails to repay the loan within the time limit, which usually leads to penalty interest.

2. According to the contract, the penalty interest can be calculated on a daily, weekly or monthly basis.

3. Under normal circumstances, the interest rate of penalty interest is higher than that of ordinary borrowing.

4. The penalty interest will continue to accumulate until the borrower repays all overdue principal and interest.

5. The increase of penalty interest can cause greater economic pressure on borrowers and remind borrowers to pay off their debts as soon as possible.

Summary:

The overdue penalty interest of online loans has been increasing, in order to force borrowers to fulfill their repayment obligations in time as a punishment for overdue behavior. It is suggested that the borrower abide by the contract, avoid penalty interest and negotiate with the lending institution to solve the overdue problem as soon as possible.

Extended data:

In China, the online loan business is strictly regulated by the regulatory authorities. According to the relevant regulations issued by the People's Bank of China and other departments, online lending platforms must operate in compliance with the law, including the requirement that the penalty interest rate should not exceed 36% of the annual interest rate. In addition, according to the judicial interpretation issued by the Supreme People's Court, borrowers who fail to repay overdue loans on time may face the consequences of credit record damage and legal proceedings. Therefore, it is suggested that borrowers use online lending services rationally, pay attention to the repayment period, and avoid penalty interest and legal risks.