If the loan is not repaid, the first thing you encounter is a high penalty interest. On the basis of penalty interest, some financial institutions also need you to pay liquidated damages. These expenses add up, but they are not a small expense. If you don't want to get into the mire of loans, you must develop good repayment habits.
Consequence 2: Credit damage
If you borrow money from the bank and fail to pay it back within the time limit, your credit report will be stained, and it will be more difficult to apply for credit cards and loans in the future. Because of petty profits, it is not worth the loss to miss your credit wealth.
Some people say that the loan I took from the small loan company will not be included in the credit report. Needless to say, small loan companies are now more interconnected with the central bank. Even in the circle of small loan companies, there is a "blacklist" system. If one company does not pay back, it will be difficult for other companies to grant loans.
Consequence 3: being collected by various means.
Banks and small loan companies have their own collection systems. Novices will text you and call you for money. In some serious cases, there will even be a collection staff pressing you around the clock, seriously disrupting your work and life. The average person can't stand this kind of "spiritual oppression".
Consequence 4: Being sued, assets may be seized.
Maybe you have a strong "anti-pressure" ability and think that all the consequences mentioned above are Mao Mao rain, so financial institutions will not be polite to you, so they can only take out the secret weapon of "court" and arm themselves with the law.
Once the court makes a verdict, even if you are reluctant, you must execute the "repayment ruling". Otherwise, the court will seal up the property under your name according to law and repay the arrears with the proceeds from the auction.
Consequence 5: If the circumstances are serious, you will go to jail.
Generally speaking, such incidents as non-repayment of loans are civil disputes and will not rise to the criminal level. However, if the borrower refuses to implement it, it will be considered as a deadbeat and would rather run away than pay back the money. If the circumstances are very bad, the court will also investigate the criminal responsibility of the borrower, and if it is too serious, it will go to jail.
Extended data:
Can you sell a house without paying back the loan?
If you can sell a house without paying off the loan, you can sell it by refinancing, that is, when you sell or transfer the personal house mortgaged to the bank to a third person, you can apply to the bank to transfer the property to the transferee, and the transferee will continue to repay the loan or re-apply for a mortgage loan. However, not every loan bank has the business of refinancing, so you can also choose to negotiate to let the buyer pay off the loan first, then trade and transfer, or find a guarantee company, which will pay off the loan first, then trade and transfer, and then return the money to the guarantee company to sell the house.