1. Borrower's credit is damaged: inability to repay will lead to overdue records, which will further affect personal credit rating and credit report. This will make it more difficult to obtain loans, credit cards and other financial services in the future.
2. Legal recourse: the loan contract is a legal document. When the borrower fails to perform the contractual obligations, the lending institution may pursue the borrower's repayment responsibility by legal means. This may involve procedures such as court prosecution, enforcement and asset seizure.
3. Late fees and high interest: Failure to repay on time usually leads to the accumulation of late fees and high interest. These fees and interest may further increase the burden on borrowers and aggravate financial difficulties.
4. Collection behavior: The lending institution may entrust a third-party collection company to collect the arrears. Collection companies can take various measures, including telephone collection, door-to-door collection, letter notification, etc. , will bring harassment and psychological pressure to the borrower.
5. Impact on the borrower's life: Failure to repay the loan may lead to the borrower's financial difficulties and affect his daily life. May face financial constraints, assets seized or auctioned, bringing inconvenience and pressure to individuals and families.
Summary:
The inability of the formal online lending platform to repay will lead to the borrower's credit damage, legal recourse, overdue fees and high interest, collection behavior and the impact on daily life. Therefore, borrowers should carefully choose loans and fulfill their repayment obligations on time to avoid these consequences.
Extended information related to the problem:
-Notice of the People's Bank of China on Strengthening the Management of Business Activities of Information Intermediaries in Peer-to-Peer Lending: This notice clearly stipulates the compliance requirements of peer-to-peer lending institutions, including risk management, information disclosure, contract agreement, etc.
-Guiding opinions of China Internet Finance Association on standardizing the withdrawal mechanism of information intermediaries in peer-to-peer lending: The guiding opinions elaborated the procedures and requirements of the withdrawal mechanism of lending institutions in detail, and protected the rights and interests of borrowers.