1) A penalty interest will be generated immediately after it is overdue.
Although the policies of each lending institution are different, on the whole, banks will be more accommodating than small loan companies. Credit loans overdue, the lender will first collect the loan, remind the borrower to repay, and the interest rate will rise as a daily penalty. The penalty interest of each bank is calculated in different ways, but the penalty interest is generally not lower than the original loan interest level.
2) There is a stain on the credit record, which will affect future loan and credit card applications.
After the deadline, the credit report will inevitably leave a bad record. Once you stay, you may be locked up for 3 -7 years. If you want to borrow from other banks in the future, you may not be able to apply easily because of bad credit. If the overdue situation is serious, the mortgage and car loan will be affected in the future. Penalty interest is only the loss of money, while bad credit records are the loss of intangible assets, and the impact is irreparable by money.
3) Being blacklisted will affect family life and work.
People who often fail to repay their loans within the time limit will be blacklisted and labeled as "Lao Lai". Once marked as a faithless person, the life and work of that person and his family will be greatly affected. For example, you can't continue to enjoy financial services, travel is restricted, children's education is affected, and the unit refuses to hire or dismiss.
4) Take legal action and be punished by law.
If you don't pay for more than three months, it will be very serious. Banks will collect loans according to law and bring a lawsuit to the court according to the loan contract and guarantee contract (mortgage or pledge contract). The court will take measures such as property preservation, including freezing deposits in all bank accounts of lenders and loan guarantors and sealing up pledged property.
1. Laws and regulations related to general principles of loans:
1, Article 27 Except for small-scale farmers' loans, short-term loans (with a term of less than one year, including one year) shall bear interest according to the legal loan interest rate of the corresponding grade on the signing date of the loan contract. During the loan contract period, in case of interest rate adjustment, interest will not be calculated by installments. A legally established Chinese-funded financial institution operating loan business in China. Legal persons, other economic organizations, individual industrial and commercial households and natural persons who obtain loans from Chinese-funded financial institutions engaged in loan business.
2. Article 28 The legal person of a county rural credit cooperative may, according to the actual situation of the rural credit cooperative in the county where it is located, formulate interest settlement rules and interest calculation methods for deposit and loan business, and report them to the branches of the People's Bank of China and the central branch of the provincial capital for the record, and the legal person of the rural credit cooperative shall inform the customers.