Loan debt may also produce the following results:

1, resulting in penalty interest. Although each institution has different policies, as long as it is overdue, it will generate penalty interest, that is, a certain percentage of interest will be added on the basis of the original interest. 2. Being classified as dishonesty will affect future loans and property purchases. After the deadline, the credit report will inevitably leave a bad record. If the circumstances are serious, it will not only be included in the list of untrustworthy executors, but also affect future real estate loans. 3. facing litigation problems. Generally speaking, after a certain period of time is overdue, a collection notice will be issued. If the collection fails, the borrower will be sued to safeguard the legitimate rights and interests through legal means.

legal ground

Article 676 of the Civil Code of People's Republic of China (PRC) If the borrower fails to repay the loan within the agreed time limit, it shall pay the overdue interest in accordance with the agreement or the relevant provisions of the state.

What are the consequences of the loan?

For those who do not repay their cash loans, their personal credit will definitely be damaged and their accounts will be frozen. Bad records may also be reported to the central bank for credit information and online credit information. It will be very difficult for people with bad credit to apply for loans, credit cards, etc.

2. It is not ruled out that cash borrowing can solve the problem through legal channels and directly bring the borrower to court. Those who refuse to execute the court's judgment will be included in the list of untrustworthy people by the court and enforced by the court.

Indirect consequences:

1. Cash loan will be used for long-term overdue collection. In the process of collection, more and more people will know about the borrower's non-repayment. In this way, the personal reputation of the borrower will be damaged, and it is easy to lose the trust of others in the future.

2. During the collection process, the cash loan may call the borrower's contact person. In this way, the normal life of the contact will also be affected. In other words, the behavior of not repaying the loan in cash is likely to implicate others.

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What are the consequences of personal credit loans?

If it is really unable to repay, it shall negotiate with banks or lending institutions to extend the repayment period or repay it in installments.

Consequences of non-payment of credit loans:

If a lending institution or bank fails to perform the court's judgment within the performance period after suing the court and winning the case, it will apply to the court for enforcement.

2. When accepting enforcement, the court will inquire about the real estate, vehicles, securities and deposits in the name of the lender according to law.

3. If the lender refuses to perform the effective judgment of the court because there is no enforceable property under his name, negative information such as overdue repayment will be recorded in the personal credit report, which will restrict high consumption and entry and exit, and may even lead to judicial custody.

4. Those who have the ability to refuse to execute are suspected of refusing to execute the judgment or ruling.

Personal credit is the foundation of the whole social credit. The market subject is composed of individuals, and all economic activities in market transactions are closely related to personal credit.

Once individual behavior is out of control, individual dishonesty will occur, and then collective dishonesty will occur.

Therefore, the construction of personal credit system is of great significance.

Personal credit is not only the foundation of a country's market ethics and moral culture construction, but also a huge resource for a country's economic development. The development and utilization of such resources can effectively promote consumption, optimize resource allocation and promote economic development.

The more the market economy develops, the more important the role of personal credit is, and the perfection of personal credit system has become one of the obvious signs of the maturity of market economy.

20 13, 10 The announcement issued by the Credit Information Center of the People's Bank of China shows that from 20 13, 10 and 28, the pilot scope for individuals to check their credit reports through the Internet will be further expanded, from the original three pilots in Jiangsu, Sichuan and Chongqing to the whole country.

References:

Personal Credit-Baidu Encyclopedia

What will happen if the loan is not available?

Yes

"What are the consequences of the loan?

1. If a lending institution or bank fails to perform the judgment of the court within the performance period after winning the case in court, it will apply to the court for enforcement.

2. When accepting enforcement, the court will inquire about the real estate, vehicles, securities and deposits in the name of the lender according to law.

3. If the lender refuses to perform the effective judgment of the court because there is no enforceable property under his name, negative information such as overdue repayment will be recorded in the personal credit report, which will restrict high consumption and entry and exit, and may even lead to judicial custody.

4. Refusing to execute a judgment or ruling is suspected of refusing to execute a judgment or ruling.

Second, if a banking institution owes a bank loan, it will take a series of measures, as follows:

1. The bank will call the borrower to collect debts.

2. If the borrower still fails to repay the debt after debt collection, there will be a certain penalty interest and a bad credit record for himself.

3. If the borrower still fails to repay the loan, the bank will send relevant staff to collect it in person.

4. If the borrower fails to repay the loan until the end, the bank will take legal measures to protect its rights and interests through law. If the borrower applies for a mortgage loan, the collateral will be auctioned by the court, and then the proceeds from the auction will be used to repay the loan.

Third, overdue loans

According to the relevant provisions of the Contract Law, the borrower fails to repay the loan within the time limit stipulated in the loan contract, which is a breach of contract and should bear the liability for breach of contract. The ways to bear the liability for breach of contract include returning the loan principal, paying the interest during the loan period agreed in the contract and paying the interest of loans overdue.

Repaying the loan principal and paying interest within the loan period agreed in the contract will generally not cause disputes because the parties have clearly agreed in the loan contract; There is a great dispute between the parties about the interest on overdue loans, and the standards applied by judges in hearing such cases are not uniform, which affects the authority of the law. Lawyers believe that it is necessary to integrate this issue so that everyone's understanding can be unified.

The funds invested by banks in such loans may or may not be recovered in the future. There is a great possibility of losses, and commercial banks usually have to impose a penalty interest on such loans. Overdue loans are the problem assets of banks. Commercial banks should maintain a high capital reserve, and the reserve ratio is generally 50%. "