1, produce late penalty interest.
After 24:00 on the day of repayment is not repaid, it will start to accrue, so this is the first direct consequence of not being able to pay back the money will happen.
Late penalty interest = late amount * penalty interest rate * number of days overdue, penalty interest rate is usually 1.5 times the normal daily interest rate, if you have not been able to pay the money, then the accumulated late penalty interest will be more and more.
2, personal credit damage.
One is that the borrower has very little credit left with the online lender, and the other is that after the overdue record is reported to the central bank credit center, a credit stain will be created on the personal credit report, which will be seen by others when they have to apply for other borrowings in the future, thus hindering the approval of the loan.
According to the relevant provisions of the regulations governing the credit collection industry, the overdue records on a person's credit report will be retained for five years from the date of settlement of the overdue arrears, and the display will only be canceled after five years, so this negative impact is relatively long-lasting.
3, cancel the borrowing qualification.
Before applying for a loan has not been able to repay the money, indicating that the borrower's credit is not good or simply have no repayment ability, has not reached the lending institution's borrowing audit standards, so be canceled borrowing qualification is the immediate aftermath of the consequences that will occur.
Disqualification, just so that the borrower can not continue to borrow money, but repayment of overdue arrears can still operate normally, which is the normal measures of risk control of online lending institutions, in order to achieve the purpose of a timely stop-loss.
4, facing continuous collection.
Collections actually also a set of processes, generally speaking.
The early stage of overdue first text message, remind the overdue amount of how much, need to pay off the arrears as soon as possible.
Then comes the telephone collection, make sure to contact the borrower himself, communicate when to pay off the overdue arrears.
If you can't reach the borrower in person, contact the emergency contact provided by the borrower so that friends and family may be aware of their overdue status.
If the borrower still keeps avoiding and is unwilling to pay off the overdue amount, then there is also the possibility of door-to-door collection, which will have a great impact on one's work, life as well as psychological state.
5, the risk of being sued.
Generally occurs when all the communication in the early stage is fruitless, and the lending institution can only recover its own interests by filing a lawsuit to the court, which is no way out.
Before the formal prosecution, some lending institutions will still have a glimmer of hope for the borrower, first send a lawyer's letter, the lawyer seriously explains the borrower's responsibility for the breach of contract as well as the need to bear the consequences of the overdue, and to the borrower to take a precautionary approach to inform the borrower in advance of a prosecution cause of action.
6, become a bad faith executor.
This situation occurs after the court judgment, the borrower has the ability to fulfill but refused to fulfill the legal instruments that have entered into force, it is possible to be included in the list of bad faith executors.
This is then publicized through newspapers, radio, television, internet, court announcements, etc., so that the whole country is aware of it as a sign of credit discipline.
7. Being restricted from high consumption.
Generally it is applied by the lending institutions, and reviewed and decided by the court, the restriction of high consumption order is issued to the executor, that is, the borrower who doesn't fulfill the effective legal documents, such as travel is not allowed to take the plane, children are not allowed to study in the high-fee private schools, are not allowed to buy a house or car, and are not allowed to travel or vacation, and so on.
8, the seriousness of the situation there is the possibility of imprisonment.
The seriousness of the situation is that the borrower hides, transfers, destroys the property seized or sealed by law, or in order to avoid repayment of the forged evidence, the implementation of bribery, and then there is to retaliate and harm law enforcement officers by beating, insulting and so on, depending on the actual situation there is a possibility of detention or sentenced to jail.
In fact, things would have been unnecessary to develop to the most serious step, depends entirely on the borrower's own choice.
For example, before the overdue to find a way to repay on time, be sued before the negotiation with the lending institution repayment matters, by the court after the judgment as required to fulfill the obligations of the effective instrument.
To pay attention to personal credit, do not blindly apply for loans. Otherwise, once the big data is spent, the comprehensive score will be insufficient and rejected. You can get a big data report from Kingfisher Data to get a clear picture of your status in terms of online lending big data. The database has cooperated with more than 2,000 online lending platforms, so the query data is accurate and complete. You also need to pay attention to your personal credit.
Expanded Information:
What are the options for not being able to pay back money from an online loan?
There are four common approaches.
1, find friends and family to borrow money back
Friends and family more or less some affection, not like the lending institutions that charge late penalty interest, will not be reported to the central bank credit, as long as they are not too much, but also not to the court, so the use of friends and relatives of the money for a temporary transition, is also a solution.
2, sell some high-value assets
such as houses, cars, precious metal jewelry, etc., although it is not cash, but also their own name of the property, their own sell better than in the future by the court to enforce the sale, as long as you can pay off the overdue arrears to solve the immediate problem, these things can be slowly earned back later.
3, take the initiative to negotiate with the lending institutions
The purpose of the lending institutions is to recover the arrears, the purpose of the borrower is to need more repayment time, the two are not in conflict, as long as the borrower can be positive, active communication and negotiation between the two sides is still very likely to reach an agreement.
For example, the original 12-month repayment period adjusted to 24-month repayment, which can reduce the borrower's monthly repayment pressure, but also allow the lending institution to recover some loan interest, is also a method, depending on whether the lending institution agreed.
4, work hard to earn money repayment
Besides the income from a job, you can also use your free time to do a part-time job, and usually live a little more frugal, and slowly build up a lot of money, and before you can't pay it back one day to pay it back, the key is not to beat the drum at the beginning.
For example, online lending 100,000 can't pay, although it seems a lot, it does seem a little powerless, but it's not necessarily a one-time payoff, you can break it down into 50 2,000 yuan, or 20 5,000 yuan, which will be more hopeful.