Legal analysis: if the loan is not repaid, there will be a high penalty interest at the beginning. Some financial institutions need to pay liquidated damages on the basis of penalty interest, and may be sued by financial institutions to the court, and the court will enforce their property against those who fail to repay the loan.

Legal basis: Article 676 of the Civil Code of People's Republic of China (PRC). If the borrower fails to repay the loan within the agreed time limit, it shall pay overdue interest in accordance with the agreement or relevant state regulations.