1. According to the regulations, what should I do if the loan defaults?

If a loan contract is breached after signing, the other party may be required to bear the liability for breach of contract.

People's Republic of China (PRC) Civil Code

Article 577 Where a party fails to perform its contractual obligations or fails to perform its contractual obligations in conformity with the contract, it shall be liable for breach of contract such as continuing to perform, taking remedial measures or compensating for losses.

Article 578 If the party who is expected to bear the liability for breach of contract clearly expresses or shows by his own behavior that he will not perform the contractual obligations, the other party may demand that he bear the liability for breach of contract before the expiration of the performance period.

Article 583 If one party fails to perform its contractual obligations or fails to comply with the contract, and after performing its obligations or taking remedial measures, the other party has other losses, it shall compensate for the losses.

Article 584 Where a party fails to perform its contractual obligations or fails to perform its contractual obligations in conformity with the contract, thus causing losses to the other party, the amount of compensation shall be equivalent to the losses caused by the breach of the contract, including the benefits that can be obtained after the performance of the contract; However, it shall not exceed the losses that the breaching party foresaw or should have foreseen when concluding the contract.

Article 585 The parties may agree that one party shall pay a certain amount of liquidated damages to the other party for breach of contract, or may agree on the calculation method of the amount of compensation for losses caused by breach of contract.

If the agreed liquidated damages are lower than the losses caused, the people's court or arbitration institution may increase the liquidated damages at the request of the parties; If the agreed liquidated damages are excessively higher than the losses caused, the people's court or arbitration institution may appropriately reduce them at the request of the parties.

If the parties concerned pay liquidated damages for delayed performance, the breaching party shall also perform the debt after paying the liquidated damages.

2. What are the consequences of loans overdue's default?

The consequence of loans overdue's default is that the bank will require the debtor to pay corresponding liquidated damages according to the loan contract, or impose a penalty interest on loans overdue.

(1) The bank will take certain collection measures. In the initial phone call, if the loan is really overdue, you can explain your actual situation to the bank and try to apply for an extension, which depends on different bank regulations;

Note: the delay will be regarded as negative information in the credit report, indicating that there are some problems with your repayment ability, but it is still better than the overdue situation.

(two) overdue for more than 90 days, if the circumstances are serious, can be regarded as malicious overdue, bank collection may also cause pressure on themselves and their families, affecting the normal life of individuals and families;

(3) In terms of overdue fees, there will be some fees such as liquidated damages and penalty interest, which need to be collected according to the contract. Different institutions and different loan products charge different liquidated damages or penalty interests;

(four) the impact on personal credit records, the impact of bad credit records on future loans such as mortgages and car loans and credit card processing;

(5) If you are sued to the court for non-repayment, and the court still refuses to repay after the execution of the judgment, you can report it to the Supreme People's Court and enter the "list of people who have been executed for dishonesty", which is also commonly known as the "list of recidivists", and you will be prohibited from traveling by plane, high-speed rail, etc.

3. Is the loan contract a breach of contract?

For breach of contract, if there is a breach clause, you need to bear the liability for breach of contract with reference to the breach clause; If there is no breach clause, you need to bear the actual responsibility with reference to the actual loss; If there is no actual loss, you can not bear the actual responsibility. Whether the loan breaks the contract after signing the contract shall be determined according to the contract signed by both parties. If the effective time is specified in the default clause, refusing to continue borrowing after the signing of the loan contract is a breach of contract and should be implemented in accordance with the default clause. If the effective time of the contract is specified after the loan is issued, the contract can be terminated before this time.

civil law

Article 578 If the party who is expected to bear the liability for breach of contract clearly expresses or shows by his own behavior that he will not perform the contractual obligations, the other party may demand that he bear the liability for breach of contract before the expiration of the performance period.

Legal objectivity:

Article 566 of the Civil Code: If the contract has not been performed after dissolution, the performance shall be terminated; If it has been performed, according to the performance and the nature of the contract, the parties may request restitution or take other remedial measures, and have the right to claim compensation for losses. Where the contract is terminated due to breach of contract, the creditor may require the breaching party to bear the liability for breach of contract, unless otherwise agreed by the parties. After the termination of the main contract, the guarantor shall still be liable for the civil liability of the debtor, unless otherwise agreed in the guarantee contract.